This consensus mechanism was created by Daniel Larimer in order to solve Bitcoin’s perceived scaling problems. dPoS has proven to scale and is the consensus mechanism behind the 3 most active blockchains running today. It is similar to a democratic process where representatives are selected as the block producers for a blockchain.
The questions that must be answered by any consensus process include, but are not limited to:
- Who will produce the next block of updates to apply to the database?
- When will the next block be produced?
- What transactions should be included in the next block?
- How are changes to the blockchain protocol applied?
- How should competing transaction histories be resolved?