What is DPoS?
One of the exciting things about Noah Blockchain is that it is built on top of cutting-edge technology — a DPoS consensus mechanism. It allows for many wonderful features — high scalability, security and a good degree of decentralization.
But what is DPoS anyway? DPoS stands for Delegated Proof of Stake.
In the case of Noah Blockchain, this actually means that there's two critical roles in the network:
Validators maintain the network from the technical standpoint.
They own the servers that the network is running on, pack transactions into blocks and sign each other's blocks.
For this, they receive rewards — emission.
They usually build services and apps for the network because they usually have the expertise to do so.
But they can only become active Validators if they have a sufficient stake.
Most of the time they obtain a stake because Delegators delegate their tokens to them.
Delegators maintain the network from the economic standpoint.
They own most of the tokens in the network.
To counter inflation caused by emission, they delegate their tokens to Validators and share the rewards for block production.
In short, this is how this whole system works.