Delegated Proof of Stake is a fast, secure, and relatively cost-efficient consensus mechanism than other existing algorithms like Proof of Work and Proof of Stake as it does not require very high computational power and the mining opportunity depends on the number of votes for the miners from stakeholders. In terms of reward incentives, DPoS incentivize the miners with the transaction fees on validation and block reward on block generation. Unlike DPoS, in PoW, the miner gets reward on block generation while in PoS, the miners only get the block’s pooled transaction fees.



In DPoS, those who hold the network token are given the opportunity to cast votes to elect block producers. For selecting the block producers, the votes from the stakeholders are weighted by the stakeholder’s stake, and the block producer candidates who receive the most votes are those who become delegates. The delegates are the community members who validate the transactions and add them to the block. On block creation, the delegates get reward. While there are problems with both democracy and corporate governance, one important feature of DPoS that sets it apart from other consensus mechanisms is the open-source nature of these protocols which means that if users disagree, they can fork. The flexible and transparent nature of DPoS makes it useable for entire blockchains or as a consensus algorithm for sidechains, private blockchains, and more. In addition to this, the lower fees, fast confirmations and the potential for increased profitability make the DPoS a perfect democratic consensus mechanism.