Delegated Proof

Definition ∞ Delegated proof is a consensus mechanism where token holders vote to select a set of delegates who then validate transactions and maintain the network. These chosen delegates are responsible for block production and network security. Delegated Proof of Stake (DPoS) is a prominent example, offering faster transaction speeds compared to other proof systems. It balances decentralization with efficiency by concentrating validation power among a smaller group.
Context ∞ Delegated Proof of Stake systems are frequently discussed in relation to blockchain scalability and governance. The selection of delegates and the voting processes are key areas of focus in news reports. Debates often surround the potential for centralization if a few delegates acquire excessive influence. Projects using DPoS continue to refine their governance structures to promote broader participation and fair representation.