How EOS Is Using DPOS

  What is a Delegated Proof Of Stake and why should you care about it? To answer these questions, we fist have to understand the differences between POW (Proof Of Work) and POS (Proof Of Stake) models.  Proof Of Work Blockchains with a POW model require computers to “mine” cryptocurrency by solving complex mathematical problems, verifying transactions, and building new blocks on the blockchain. For every new block created, they are rewarded with some cryptocurrency. The  problem with this concept is that when  Bitcoin became mainstream, the POW concept became unsustainable and insufficient for the needs of the world at large. Current projects with a POW Proof Of Stake In 2012 Proof of Stake  was created as an alternative to Proof Of Work by crypto innovators Sunny King and Scott Nadal. Due to the amount of electricity being used by POW, they wanted to create a more greener and fairer alternative for blockchains. Miners would be randomly chosen by the system, no energy would be wasted by having computers solved complicated math problems, and instead of mining, users could invest directly into the coins; they would not have to set-up and maintain expensive mining rigs. (Busy.org) In a POS token holders would be able to participate in  validating transactions and forming consensus. The more tokens you hold, the more tokens you get. Ethereum is looking to change their POW model to POS. Current projects with a POS Delegated Proof Of Stake DPOS was created by Dan Larimer to resolve many problems in the POW and POS systems. He wanted to make it more decentralized, less energy wasteful and build a system that can withstand more transactions. He  tried it out in his first blockchain DPOS startup with Bitshares. With DPOS system every token holder is able to vote for representatives. These representatives validate transactions and form consensus, and are paid for their efforts through the system. This avoids a pitfall of POS, which is that, just like in POW, consolidation will eventually occur. Think of it as a more democratic POS. People in a particular cryptocurrency community vote for Witnesses to secure their computer network. Not all witnesses earn a salary, only the top 20 delegated ones. Voting power is determined by stake. As the community grows, the harder it is to become a witness because it becomes competitive thus witnesses have to work harder to retain status. Current projects with a DPOS   By Menajem Benchimol