EOS Cryptocurrency and Blockchain Guide
Voting for Block Producers
EOSIO uses Delegated Proof-of-Stake (DPoS) voting protocol that empowered token owners to select and vote block producers for its blockchain ecosystem. Account holders need to stake their EOS cryptocurrency tokens to be able to vote and they can vote up to 30 block producers with their tokens at a time. Blockchain users will not need to pay any fees for staking EOS tokens and voting block producers.
Users will have more blockchain voting power if they stake more tokens. For example, Tommy has acquired 2000 new cryptocurrency EOS tokens through bitcoin trading from a cryptocurrency exchange and staked all of them on the blockchain, he will be able to cast 2000 votes for up to 30 block producers.
The top 21 candidates that acquire the most votes will become the core set of block producers and validators for EOSIO blockchain. The remaining block producers will be compensated by the ecosystem according to their vote ranking and be assigned as standby block producers.
Responsibilities of Block Producers
The main responsibilities of block producers is to verify transactions, put them into blocks, sign off, broadcast those news blocks and lastly ensure their nodes are always running. Trading and transfers related to cryptocurrencies will usually generate a lot of transaction records. Block producers will get paid for verifying those transactions and producing blocks on the blockchain but will not get paid if they fail to produce block in time. The failed block producer will have its turn skipped and the next block producer will produce the next block.
Block producers have no power to modify transaction details but they can reportedly exclude transactions since they are the core transaction and block validators. This modification will be temporary because other block producers will eventually include those transactions in the follow block, the voting users can then exercise their power to vote out the dishonest block producer.
It is recommended for users to vote block producers cautiously for the well-being of the entire EOSIO blockchain network. This will ensure block producers that are malicious, unfit or not doing their job sufficiently will be kept out of blockchain roles. Many users believe EOS is the most decentralized and democratic blockchain with every token owners able to vote and influence changes on its network.
Delegated Proof-of-Stake (DPoS) DPoS voting protocol is invented and developed by Daniel Larimer who is also the founder of Bitshares decentralized cryptocurrency exchange. Bitshares is a well-known cryptocurrency exchange that can be used for altcoin, ethereum and bitcoin trading. As compared to other cryptocurrencies, users cannot use bitcoin or ethereum altcoin cryptocurrencies to vote. Tron and BNB altcoin cryptocurrencies are using consensus protocol somewhat similar to DPoS but Ethereum and Bitcoin use Proof-of-Work (PoW) mining.