Delegated Proof-of-Stake (dPoS)

In the Delegated Proof-of-Stake (dPoS) consensus algorithm, the elected delegates verify transactions and generate new blocks. When a delegate receives the block reward, he or she shares it with those wallets that voted for him or her, i.e., have a share ("stake") in the network. The reason for using the dPoS is the increased efficiency compared to other consensus mechanisms since a higher transaction rate can be achieved. However, this gain in efficiency or better scalability due to the smaller number of nodes compared to Bitcoin or Ethereum, for example, comes at the expense of decentralization, which is explained in the Blockchain Trilemma.