Delegated Proof Of Stake In Blockchain Explained Training Ppt

Slide 1

This slide illustrates the concept of Delegated Proof of Stake (DPoS) consensus mechanism in the blockchain. It also includes information regarding importance of voting in the DPoS algorithm and the details of multiple cryptocurrencies that use DPoS.

Slide 2

This slide visually presents the working of DPoS consensus mechanism in the blockchain highlighting significance of voting and ranking of nodes to select members of the elected witness panel.

Slide 3

This slide provides information regarding the major advantages and disadvantages offered by the DPoS consensus mechanism. The major pros of the DPoS algorithm are high speed, democratization of rewards, high energy efficiency, etc. The key cons of the DPoS algorithm are the formation of cartels and ease of organizing an attack.

Instructor’s Notes:

The major advantages offered by the DPoS consensus mechanism are as follows:

• High Speed: DPoS provides quicker processing of transactions as only selected delegates have to confirm the transactions on the network
• Democratization of Rewards: In DPoS, users elect only those delegates who will give them the most rewards, leading to better democratization of rewards
• High Energy Efficiency: DPoS consumes significantly less energy than other consensus mechanisms as it doesn't require specialized equipment for implementation
• Less Expensive: DPoS doesn't require any specialized equipment to implement, making it a less costly consensus mechanism
• Check on Bad Behavior: Since malicious delegates can be voted out at any time, it forces everyone to act to maintain and enhance the security of the blockchain

The major disadvantages of DPoS consensus mechanism are:

• Formation of Cartels: Delegates can form cartels taking control of the transaction approvals process, making the whole network less decentralized
• Rich may get Richer: In DPoS, users with more tokens have more influence on delegates selection, resulting in only the rich getting the more prosperous
• Easier to Organize Attack: In DPoS, it is far easier to organize a "51 percent" attack by lobbying delegate
• Low Voter Turnout: The whole concept of the DPoS mechanism can fail if voter turnout is low to select the delegates

Slide 4

This slide highlights the difference between the Proof of Stake and Delegated Proof of Stake on multiple parameters such as validators selection, winner selection, democratization of rewards, transaction speed, and scalability.