EOS is built on delegated-proof-of-stake (DPOS), a form of proof-of-stake that gives token holders governance power relative to their stake in the system. The EOS token is a pro-rata claim on access to the EOS network’s resources, as well as a pro-rata claim on its governance rights. The EOS Network is a decentralized operating system governed by a DAO.

In DPOS, EOS token holders delegate their stake to elect representatives responsible for validating transactions. One of the advantages is that this helps eliminate consolidation, where smaller miners are pushed out by those with greater computing power and resources.

Author: Randall Roland

Editor: Zack Gall

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