Delegation Protocol

Definition ∞ A delegation protocol is a set of rules allowing a user to grant specific permissions or rights to another entity without transferring ownership of the underlying asset. In blockchain contexts, this often applies to staking mechanisms where token holders delegate their voting power or staking rights to validators. This process enables participation in network consensus or governance without requiring the delegator to run their own node. It facilitates broader participation and decentralization while maintaining security.
Context ∞ Delegation protocols are central to many Proof-of-Stake blockchain networks, with ongoing discussions about optimal delegation strategies and validator decentralization. Debates concern the concentration of delegated power among a few large validators and potential centralization risks. Future developments may involve more sophisticated delegation models that distribute power more widely or offer enhanced incentives for smaller validators. This evolution seeks to strengthen network resilience and governance fairness.