DPoS Explained — Simply
Blockchain is a distributed technology, unlike classical centralized systems, no single individual has extensive power over the network, only the entire connected community possess such influence. In-order for the system to be truly distributed, the Proof-of-Work (PoW) method was realized through a process known as mining (E.G. Bitcoin, Litecoin). If Bob’s computer is faster than Alice’s, then he has more influence on the network.
However, ‘Mining’ has a significant drawback — large electricity costs. Therefore, an alternative method, Proof-of-Stake — PoS (E.G. PeerCoin, NXT) was invented, implying that the user’s influence depends on their active share in the network. Suppose Bob has 100 network coins, and Alice has 90. Now, Bob has more influence on the network, but if he sells 20 of his coins, he will then have 80, and Alice will have the greater influence.
The next improvement is known Delegated Proof-of-Stake (dPoS) and its variations, examples include: BitShares, Lisk, and ADAMANT Messenger. This method works similarly to PoS, but with an important distinctive feature — you can transfer (delegate) your influence on the network to another users.
Suppose Bob has 100 coins, Alice has 80. Bob votes (delegates influence) for Bill and Helen, and Alice for Mark.
In the case of Lisk’s dPoS, Bill and Helen are more influential (100) than Mark (80), and that is unfair (as we see it).
ADAMANT improved this dPoS system, diminishing vote weight by number of votes. Since Bob votes for two delegates, his vote is 100/2, that is, 50. Then Bill and Ellen have the following impact on the blockchain: 100/2 = 50, and Mark — 80. That is, Mark’s influence is greater than that of Bill and Helen.
ADAMANT improved dPoS also considers Node’s Productivity. Faster, more successful nodes that do not miss blocks will have a greater Vote Weight.
We called this approach «Fair dPoS», you can read more about it.
Thus, fair dPoS allows more significant network participants to control that «everything goes as it should». The delegates are not only responsible for the proper functioning of the network, but also receive a reward in coins for their role.
To become a delegate of the ADAMANT network, you need to install a node, register as a delegate and get the votes of users who trust you. You should have enough votes so the sum of your voters’ coins brings you to the list of the first 101 delegates.