The centralized financial system was seen as the best means of making seamless transactions among users in different regions although there were multiple flaws in the centralized system like the use of intermediate parties before making any transaction full autonomy from the centralized system over a user fund this flaws and other gives birth to the decentralized blockchain system where an anonymous programmer introduced a system that will make the centralized financial system old fashioned with the integration of blockchain that allows users to manage their funds send and receive payment without any third party interfering makes it more flexible for users to control their fund also we saw in the decentralized system how proof of work PoW consensus was used which is energy consuming and slow this gave birth to a new system known as delegated proof of stake DPoS that eliminates the need of miners and large energy usage.
DPoS
DPoS is a consensus developed to secure blockchain transactions it ensures all transactions executed within the blockchain are secure and safe from external threats using technology-based implementation base on democracy where voting and election using ( validators ) are chosen to process payments base on transparency in other to make the blockchain network more secure.
The DPoS consensus was developed as an alternative for proof of work PoW and proof of stake PoS consensus inefficiency of energy consumption and use of stakeholders holding larger amount to token to make validation is countered using the DPoS system of payment.
How DPoS works
Unlike the PoW blockchain where miners validate users transactions the DPoS are maintained through an election process.
Just like steemit/hive blockchain that uses DPoS method based on voting active users choose witnesses and delegators by placing their token on the name of any witnesses they are convinced with these witnesses and delegators are task with transparently validating users transaction. in return, these delegators are rewarded for every transaction they complete.
If a delegator by chance misses any transaction or his system went offline this transaction will be shifted to another active delegator who will immediately complete the transaction process.
Advantages of DPoS
DPoS has protection from double-spend attacks; a double-spend attack is when malicious users duplicate a cryptocurrency and spend the fake one with the help of witnesses and delegates this problem will be double check before any transaction can be confirmed.
Energy Efficient and environmentally friendly; the absence of use of fossil energy for mining makes DPoS very efficient.
Is considered more decentralized; in DPoS both small and large users can participate in voting and making decisions
DPoS coin is more scalable as it requires less energy to process the transaction.
Disadvantages of DPoS
Number of witnesses and delegates are limited in the DPoS consensus
User with small votes can feel their place in the system matters a little as holders with larger coins get more attention.
The DPoS system is considered more flexible and scalable as it processes transactions at high speed with less energy needed to execute any transaction, computers, and nodes are needed to keep the blockchain secure.
Here miners are eliminated, witnesses and delegators does the working principles of miners like that of Bitcoin blockchain DPoS can be said to be advanced blockchain technology as it working process are less complex for use.