Delegated Byzantine Fault Tolerance (dBFT)
The delegated part of this consensus method refers to the nodes being elected by the shareholders. In order to be up for election a node must stake some of their crypto and in this sense it is similar to PoS. However, nodes aren’t weighted by the amount they stake, instead every node has equal weighting. A minimum amount must be staked for every node you wish to control. It becomes increasingly expensive to control more nodes and increasingly unlikely any one of those will be voted in. Shareholders will likely vote in nodes that charge the lowest transaction fees as this promotes usage of the network. Low transaction fees reduce economic incentive to becoming nodes preventing attackers from being rewarded for attempting to set up a node monopoly. There is no mining in this method, transaction fees are paid to the nodes.
- Fast confirmation times
- Very high transactions per second capacity (in the 1000s Tx/s)
- The blockchain will shut itself down before it allows a fork meaning a focus on consistency as opposed to liveness which is important when trading assets
- Low transaction fees (currently free)
- As of yet untested at a large scale
Cryptos that use dBFT
TL;DRdBFT allows users to elect nodes who have staked a minimum amount. Each node has equal say. Keeps transaction fees low.