Delegated Proof-of-Stake (dPOS)

Basically, delegated Proof-of-Stake (dPoS) is an alternative to the Proof-of-Stake consensus algorithm. Initially, the Proof-of-Stake (PoS) algorithm was developed in response to the limits often associated with Proof-of-Work (PoW) consensus.

With a dPoS system, participants can stake their coins. But, instead of validating the work themselves, stakeholders can outsource their work to groups responsible for meeting consensus among the stakeholders.

These dPoS delegates are often elected based on their reputation and trustworthiness. Not to mention, the community holds all the rights to vote and replace delegates at any point in time.