Proof of Stake vs. Delegated Proof of Stake; The difference between 2 Consensus Algorithms
Speaking of Consensus Algorithm or the mechanism behind the blockchain technology, Proof of Stake (PoS) is one of the most well-known systems that was designed as a solution to the core weakness of Proof of Work (PoW). However, there is another consensus algorithm besides PoS that functions similarly.
The distinction between two consensus algorithms, Proof of Stake and Delegated Proof of Stake, The mechanism behind cryptocurrency will be the topic of today’s Bitkub Academy blog. Let’s take a look!
What is Proof of Stake (PoS)?
Proof of stake is an enhanced consensus mechanism that was developed as a solution for the Proof of Work (PoW), which uses considerable amount of energy to mine new blocks. PoS solves that problem by selecting a validator to forge new blocks. The quantity of coin or token being staked in the system was the primary selection criteria; the more you stake, the more likely it is that the system would select you.
Generally speaking, PoS potentially functions way better than PoW in terms of validating speed. It also cost less and has higher immunity against the 51% Attack where miners can merge their mining power to become the majority of the mining pool and take over the network’s authority.
What is Delegated Proof of Stake (DPoS)?
Delegated Proof of Stake is a variation on the Proof of Stake in which the selection procedure was determined at random based the quantity of coin or tokens staked, making the framework more centralized than we might initially expect.
To maintain decentralization, DPoS was designed to alternatively provide holders the right to select the validator or Super Representative who will be assigned to be in charge of the new block’s creation in the Tron network. In this process of delegation, the voting power will depend on the number of TRX you have, meaning the more TRX, The more voting power you’ve got.
Let’s dive into the difference between PoS and DPoS
Analyzing the system as a whole reveals that both systems operate similarly, but the selection procedure is the main difference. PoS theoretically randomizes validators and relies on the amount of coin or tokens staked to raise the possibility of being selected.
In the meantime, DPoS handpicks validators through the delegation process where users who own the coins or tokens will gain the right to vote for a validator who will process incoming transactions in the network. To encourage users to sustainably participate in the delegation process, the delegator also earns a portion of incentives in return.
As for their security, both Consensus Algorithms punish malefactors who plan to validate incorrect transactions by confiscating thier staked assets to encourage validators to maintain their trustworthiness.
Overall, both of the consensus algorithms are serving a similar purpose but in the end, these technologies are the starting points toward decentralization while openly welcoming anyone to take a part in the inspection.
With the decentralization principle, efficiency can be achieved while also clarifying doubts that can arise from a centrally controlled system. These technologies will continue to develop to increase our convenience as well as our security in the future.