DPoS stands for Delegated Proof of Stake. It’s a consensus mechanism used in many blockchain networks, including EOS, BitShares, and Lisk. The Delegated Proof of Stake (DPoS) system was first introduced by Daniel Larimer in 2014.
In a DPoS system, instead of every node participating in the consensus process, a certain number of “delegate” nodes are selected to create new blocks and validate transactions. These delegates are chosen by the network’s stakeholders, who cast their votes in a continuous approval voting system. Generally, the more stake (i.e., coins or tokens) a user holds, the more weight their vote carries.
The advantages of DPoS over other consensus mechanisms like Proof of Work (PoW) or standard Proof of Stake (PoS) include faster block times and higher scalability. DPoS also uses far less energy than PoW. However, it has been critiqued for potentially leading to centralization, since only a select few nodes get to participate in the consensus process. Nevertheless, DPoS remains a popular choice for many blockchain networks, especially those aiming for high throughput and scalability.