The proof of work mechanism followed by the infamous Bitcoin for easy verification of data is not only costly, but also time consuming. The expenditure done to produce the required amount of work is more than the amount of electricity that is essential to supply an entire country like Switzerland for one year. As per the current analysis, Bitcoin annually consumes around 60-TWh electricity, which is huge.
In order to address the ongoing electricity-related problem, EOS, one of the major altcoins in the cryptocurrency world, is trying to fix this issue so that the energy isn’t drained for mining coins.
Currently, coins are mined using POS (Proof of Stake) mechanism wherein in one coin equals one chance. In order to mine coins and control the network, the person has to own more than fifty percent of the coins. While POS is a good alternative to the POW mechanism, it also comes with certain challenges and limitations.
To address all the mining-related mechanisms, the famous altcoins in the digital world, the makers of EOS introduced a system, which is widely known as delegated Proof of Stake mechanism aka DPOS mechanism. In this arrangement, each coin equals one vote that helps in selecting few delegates often known as block producers. The block producers who receive the vote are further allowed to produce blocks and further get rewarded by the relevant network. Here voting power is equivalent to the number of coins held by each voter.
In the current period where blockchain technology is being utilized to solve real-world solutions, the blockchain-based companies need to emphasize on improving not only the quality of the product promoted by them, but also see the usability of the product developed by them.
Hopefully, the DPOS mechanism promoted by EOS company gets globally accepted and helps the companies solve the underlying problem of extreme power consumption, which might give rise to power cut issues in future if not addressed immediately.