Delegated Proof of Stake (DPoS) is a new consensus algorithm used to secure blockchain transactions and is an alternative to the Proof-of-Stake (PoS) and Proof-of-Work (PoW) models. Though PoW and PoS provide security, they require extensive resources, time and energy to process. However, the DPoS model eliminates these problems, as it is considered the fastest, most secure and most efficient consensus model available to date.
The DPoS method implements a digital democracy to counter the adverse effects of centralization, which are potentially faced in the PoS and PoW models. DPoS uses the power of stakeholder voting to resolve consensus issues in a fair and democratic manner. This digital democracy allows users of the system to have full control over the delegates that are certifying ledgers. The DPoS method works on a voting system, allowing individual nodes in a blockchain community to vote for Witnesses to secure their computer network. Witnesses are well-proven users that the shareholders know and trust. Witnesses take turns delegating and serve the role of validating signatures and timestamping transactions by inputting them in the Blockchain. If a Witness is not doing a quality job securing the network, people in the community can remove their votes. Essentially if a witness fails to produce a block efficiently, then they may be voted out by the node community. Furthermore, all updates to a ledger must be authenticated and applied in the order agreed upon, allowing the database to remain consistent.
By utilizing the DPoS technology, BlockRx can offer our Pharma industry users secure transactions in an efficient and timely manner. Users can benefit from a fully decentralized system which allows for a general agreement among participants.