Tron (TRX) tweeted a message on the official Twitter page on August 11th, citing the distinctions that exist between the Proof of Stake (PoS) and the Delegated Proof of Stake (DPoS) protocols.
The Proof of Stake (PoS)
The PoS protocol is where the miners place some of their coins in a specific block to authenticate a transaction. The block then picks them out according to an algorithm of how much time or how many coins the miner possesses. Once chosen, the miner checks the transaction.
The likelihood that a miner will be directly elected is dependent on the number of coins he is wagering. The Proof of Stake protocol held a significant edge over Proof of Work in reducing power consumption and system tension and promoting for faster transactions.
The Delegated Proof of Stake (DPoS)
On the other hand, the DPoS is an accurate and more useful interpretation of the PoS protocol. The employment of a permanent voting system and a system of reputation to reach consensus are two of the main characteristics of the Delegated Proof of Stake.
Community representatives vote for their Super-Representatives who subsequently authenticate the transactions to earn a reward.
Why Tron (TRX) moved from PoS to DPoS?
There are many reasons why Tron (TRX) changed its running protocol from a PoS to a DPoS. The main reason for the shift is that community members have more power within a DPoS protocol, and can even govern the network.
Additionally, in a DPoS platform, there are virtually zero risks of fraudulent activities, as the community members are the ones who authenticate a transaction before it happens. This method is opposed to the PoS protocol where an illegal activity or a threat can only be discovered after it happens.
Besides, Tron (TRX) moved from PoS to DPoS to reduce costs and electric consumption, but also to give more power to investors who can now decide who becomes Super-Representatives.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.