Proof of Work/stakes and Delegated POS :
Proof of Work(POW):
· It is a piece of work (or data) which is difficult to produce but is very easy for others to verify , which satisfies certain requirements.
· Bitcoin uses the Hash cash proof of work system.
· For a block to be accepted by N/W participants, miners must complete a proof of work which covers all the data in the block.
· For a block to be a valid it must have a hash value , one previous than the hash value of target block, this means that each block indicates that work has been done generating it. Each block contains the hash of the preceding block. thus all the blocks are chained together to form a large network containing a large amount of work and forming a blockchain.
· Changing a block requires regenerating all successors and redoing all the work they contain(to synchronize hash values).This is difficult to perform and thus protects block chain from tampering.
Proof Of Stakes(POS):
· Different way to validate the transactions via distributed consensus.
· The creator of block is chosen in a deterministic way, depending on its wealth, also termed as stake.
· No Block reward, only transaction fees for the miners.
· purpose is the same of the proof of work, but the process to reach the goal is quite different
Delegated Proof Of Stakes(DPOS):
· every client in a DPOS system has the ability to decide who can be trusted rather than trust concentrating in the hands of those with the most resources.
· DPOS implements a layer of technological democracy to offset the negative effects of centralization.
· Mitigates the potential negative impacts of centralization through the use of witnesses (formaly called delegates).
· reaps major advantages of centralization while still maintaining some calculated measure of decentralization.
Working :
A total of N witnesses sign the blocks and are voted on by those using the network with every transaction that gets made. By using a decentralized voting process, DPOS is by design more democratic than comparable systems. Additionally, each block signed must have a verification that the block before it was signed by a trusted node.
· DPOS eliminates the need to wait until a certain number of untrusted nodes have verified a transaction before it can be confirmed
· reduced need for confirmation produces an increase in speed of transaction times.
· allows for many more transactions to be included in a block than either proof of work or proof of stake systems.