What is the difference between proof-of-work (PoW), proof-of-stake (PoS), and delegated proof-of-stake (DPoS)?

This is part of a talk which took place on July 7th 2017 at a Bloktex event hosted by the Wisma BeeOn Group in Kuala Lumpur, Malaysia: https://antonopoulos.com/event/the-future-of-money-kuala-lumpur-malaysia/

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Decentralized power, leaderless governance – https://youtu.be/E5VbDlQTPzU
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Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin.

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He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.

THE INTERNET OF MONEY, v1: https://www.amazon.co.uk/Internet-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8

MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042

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Music: “Unbounded” by Orfan (https://www.facebook.com/Orfan/)
Outro Graphics: Phneep (http://www.phneep.com/)
Outro Art: Rock Barcellos (http://www.rockincomics.com.br/)

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24 COMMENTS

  1. I think it's important to point out that DPOS does not work like that. It's much better than what was just described.
    People that have stake (own tokens) actually vote for block producers. 1 token = vote.
    You never entrust your stake to ANYONE.
    The block producers with the most vote get to earn a reward per block. Shareholders of the chain (anyone with a token) gets to vote in AND FIRE block producers. The power is very distributed in this way. There are no economies of scale (with say mining rigs or electricity costs) that come into play as there would in PoW.

    Also, block producers don't need to stake any tokens in order to produce blocks.
    They merely need the approval of the majority of tokenholders. If they screw up they are voted out and loose their block producer position (and salaray!)

    Finally, if you are a tokenholder and don't feel like voting for blockproducers, just set your account to vote by proxy. You will hence vote for whoever the person you set as your proxy will vote for.

    This has the effect of being as efficient as a board of directors while being as decentralized as old school direct democracy!

  2. I think all of these coins should have code that says if a wallet contains over 50% of total coins in circulation, all those coins are then added to transaction fees for next block, effectively redistributing them among miners.

  3. the rich always get richer and it doesn't matter which protocol you are using, with POW the rich can always build large mining farms and purchase loads of mining machines, and then the economy of scale will drive the mining cost down by a lot, which means more profits, and these profits can then be used to keep on expending the mining operation if they will. in POS the validator is randomly assigned and the validator has to complete the validation process in a very small time window. This means it is very difficult and very costly to attack the system.

  4. the main problem with proof-of-stake is that it is not tied to scarcity in the physical world. so there is no reason to use one proof-of-stake cryptocurrency rather than an identical clone of the same currency. i imagine it would become worthless as people will just clone their own where they "pre-mine" more of the currency for themselves. in fact i think it would quickly devolve to this: https://steemit.com/smt/@mattclarke/introducing-equalitycoin-the-only-smart-media-token-you-ll-ever-need

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