Proof of Stake DPoS

Every Tron TRX enthusiast by now knows that TRON uses the Delegated Proof of Stake (DPoS) concept as its consensus mechanism. The Tron community has successfully elected its 27 Super Representatives (SR) as of August 22nd, 2018.  But why does Tron use the DPoS consensus mechanism? What do the SRs do? Most importantly, what is your role in the TRON ecosystem?

To answer these questions, we will begin by looking at the evolution of the consensus mechanisms.

Consensus Mechanism Evolved

Initial blockchains like Bitcoin used the Proof of Work (PoW) consensus mechanism, where miners validate a block by solving complex mathematical puzzles. Several miners compete to solve the block. The miner who first solves the block and adds it to the blockchain is rewarded. The mining process consumes a lot of energy and is centralized in a way, since the entity with the largest number of mining rigs has more control.

Then came the Proof of Stake (PoS) consensus mechanism, where witnesses stake their digital assets (coins) in the blockchain. Witnesses run their computer to check the rules and validate the transactions for everybody else on the blockchain. If the validation was correct, they get the stake back and a certain amount of fees. If the validation is incorrect, they lose their stake. In PoS you use the digital currency itself instead of energy to prove your commitment to validate rules and secure the network. People, who stake the most, get to be the witness and can continue to be so as long as they have money to stake. This has resulted in many staking pools, comprised of many stake holders.

Tron uses Delegated Proof-of-Stake (DPoS) to achieve consensus. Tron community members elect Super Representatives (SR) to secure the Tron network. At any given time, there are hundreds of competitors, pitching to be an SR.  Your votes then determine the 27 SRs who will validate the transaction blocks and ensure the security of the Tron network. Blocks are allocated to the SRs for validation.  For every valid block confirmation, the Tron network pays a fee of 32 TRX to the SR. The Super Representative can then decide how to allocate those funds. The SR is responsible for funding operations as well as the server costs, which can range from $5,000-$10,000 per month.

Voting Matters Most for Tron

The SR election occurs every 6 hours. If an elected SR does not perform well, the community can remove their votes, essentially firing the bad actors. Your vote strength is determined by how much TRX you can freeze up and convert to Tron power. This means that people who have more Tron power will influence the Tron network more than people who have less Tron power. As a participant in this ecosystem, I cannot stress out how important it is to vote. Many people just vote for rewards, but that is not the only thing you should be looking for. You want a project that has the long term vision to add value to the Tron network and the TRX token.

Tron Consensus Mechanism Comparison

So, having gone through the different consensus mechanisms briefly, let’s take a wild guess why Tron chose the DPoS consensus mechanism. If you still aren’t sure, the table below will help you understand.

 

Consensus mechanism/ Attributes     PoW PoS DPoS
Energy Consumption High Low Low
Transaction Speed Slow Fast Fast(2,000+)
Centralized Getting there Nope Nope
Community Involvement Very low Low Super high
You can validate blocks and earn rewards if you Have a mining machine Have some monetary capital Have the trust and support of the community and you get their votes.

Tron’s Delegated Proof of Stake Protocol

As a result of the aforementioned data, Tron chose the delegated proof of stake consensus mechanism to be the backbone of the Tron protocol. But in order to maximize the network, it is important for the TRX community to do their part. Go vote for your favorite SR!

Tron Spark is an elected Super Representative that is currently offering 100% of the TRX rewards to the community. We are also building a content creation platform in order to inform and educate the masses regarding cryptocurrencies and the Tron protocol. Join our efforts, vote for us, and be a part of our community. You can join our telegram group here. Thank you for your support.

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Praveen Kumar

Master of Computer Applications with 10 years of experience as an Information Developer. Worked with several Fortune 500 Telecom and Networking companies.