Author: Marco Gonzalez
Editor: Randall Roland

The primary difference in how EOS transactions are recorded has to do with staked resources. Instead of miners, EOS incorporates a system of block producers (BPs). They act as a sort of ‘mining pool’ for token holders who stake assets to independently selected BPs. EOS’ consensus mechanism is termed Delegated Proof of Stake (DPoS). DPoS is powerful enough to combat the negative aspects of pareto-distribution. While users have the opportunity to select several BPs, only the top 21 get to finalize transactions.

BPs offer several advantages over the detrimental mining pools that formed on Proof of Work (PoW) chains like Bitcoin and Ethereum. The first major advantage stems from transaction finality. As previously mentioned, only the top BPs participate in securing the blockchain record. BPs do so via a turn-based system built into EOSIO’s core functionality. It’s a dynamic that can handle near-instant transactions in the tens of thousands per second.

A second key advantage in the 21 BP system is efficient decision-making. Consensus is reached much quicker when token holders select to whom to delegate their stake. Such a system has built-in measures to curtail centralizing influences. DPoS focuses on performance and innovates toward ideology, and not the other way around as many blockchains do.

So what happens when a BP falls out of favor with token holders? A new BP enters the top 21 position when token holders re-delegate their stakes. A notable reorganization of the top 21 happened recently. It was in response to the transition of lead development away from Block.One to the EOS Network Foundation (ENF).

To participate in selecting the top 21 BPs, users must have tokens staked to a wallet. Token holders then select up to 30 BPs. Highlights of EOS staking:

This section specifies the role BPs have in governing the EOS mainnet following the emergence of Eden and the ENF.

The specific mechanism used to formalize transactions are msig (multi-signature) accounts. The most powerful application of msigs is when BPs come together to sign an EOSIO network update. Two factors must be met prior to an msig passing:

Threshold refers to the required amount of votes needed. Two-thirds is commonly used as a threshold parameter. Weight refers to the power of each vote. Thus, msigs factor in both the number of accounts involved, as well as each’s influence within a given smart contract. Again, a ⅔ + 1 majority is needed for most decisions.

Discussing governance invariably involves tendencies toward centralization, vote buying, and BP alliances. Few dispute how BPs tended to consolidate their agendas over time. The founding of the ENF changed this centralization trend within a few short months.

Developers rallied around the ENF. Not only does the future of the mainnet stand to benefit, but also EOSIO (now Antelope) tech as a whole. Efforts like the EOSIO+ (now Antelope) Coalition help ensure a new standard for both mainnet BPs as well as other chains within the ecosystem.

The new standard supports greater independence across the board. Working groups (which the Coalition+ is one among a growing network) focus development in a way that wasn’t present on EOS prior to ENF leadership. Prior to the ENF, development tended to stray from originally agreed upon goals. Shifting political agendas all too often stifled even the best ideas.

Among the reasons why EOS’ future's so bright is because BPs newfound willingness to work with the community. Not all is perfect. Far from it. Though, each month finds positive results and an overall brighter outlook for the EOS mainnet and the greater ecosystem.