Delegated Proof of Stake (DPoS)

Delegated Proof of Stake (DPoS) is a consensus mechanism for blockchain networks. It is a variation on Proof of Stake, in which blocks of transactions are produced by token holders, who may lose their staked tokens if they propose invalid transactions. In Delegated Proof of Stake, token holders vote for delegates who are response for validating transactions and can earn transaction fees. Dishonest block producers are removed from the consensus process through a token holder vote, proportional to the percentage of total tokens held. Block producers are not required to have significant token stake themselves. Networks such as EOS, Steem, Lisk, and Bitshares utilize DPoS.