Essentially it’s nothing more than a database without an owner, or an irreversible public record, replicated across multiple computers all over the world. Yes, it’s a simple construct, yet its consequences are profound & multidimensional. Quite similar to the impact the invention of Internet had 20 years ago.
Blockchain is the ultimate implementation of freedom of speech. Whatever you put in the blockchain, stays there forever. Nobody has the power to remove it. Ever. In a way, blockchain acts like the first-ever indestructible printing press.
Blockchain introduces some new paradigms. It fuses the concept of user and shareholder into one entity. It also allows multiple competing user interfaces to be connected to the same underlying database. Never in the history of the Internet has something like that been possible – until now.
Blockchain introduces a new type of economy: businesses powered by constant economic growth. Contrary to conventional businesses, blockchain-based ones no longer need to keep their finances in balance. Instead, they can survive by constantly issuing new shares, provided they can grow faster than the rate of share issuance, which in most cases is a viable condition.
At the very core of every blockchain there needs to be a consensus mechanism. This allows multiple entities running the blockchain to establish one version of truth.
There are many ways to reach it – Delegated Proof of Stake (DPOS) is one of them.
DPOS uses stakeholder approval voting for resolving consensus issues. Block producers are elected by the token holders, each voting according to their stake, and each able to revoke their vote any time they want.
DPOS has its deficiencies, yet we believe it offers the best trade-off one can make in a decentralized environment. It’s the fastest, most efficient, most decentralized, and most flexible consensus model available.
And what’s most crucial, DPOS has been proven to work in real-life situations. It has turned out to be resilient and extremely efficient in various aspects, including processing power and decentralized governance.
Furthermore, by carefully splitting tasks & responsibilities, it’s designed to protect all participants against unwanted regulatory interference.
As of now, DPOS, or its variations, is being used in several projects in the blockchain industry.
It was first introduced in BitShares back in 2014 and Steem implemented it in 2016. Since then, several other projects embraced Dan Larimer’s invention, including Lisk, Cardano, Ark & Loom. Needless to say, DPOS is going to be a crucial part of EOS.
It all started with Bitcoin, which is about simple payments. Then came Ethereum, which is about smart-contracts, i.e. automating those simple payments and making them conditional. And now we have EOS, which is about turning those smart-contracts into full-blown decentralized applications.
In a way, it’s similar to what Android or IOS did for the smartphone.In other words, EOS is about building real-life businesses on the blockchain.
It takes the notion of smart-contracts to the next level, by providing an operating system on which they can run.
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