Blockchain Performance

While Larimer was philosophically driven, he was also practical. He knew people would not switch over to a DPOS system unless there were obvious benefits to using the DPOS system. POW had been used for a few years now, and there were obvious downsides; not only was it prone to centralization, but its technology was severely lacking. Due to the way POW is set-up, POW systems are often very SLOW, and the fees associated with such transactions are at worst prohibitive, and at best a very expensive nuisance. Because of these limitations, Larimer knew that POW would never catch on globally; blockchain would only be appealing to a niche group of (wealthy) people. But with so much money and power behind the POW system, Larimer knew the only way he could prove the superiority of DPOS was to build, so he built his first DPOS blockchain, Bitshares.

Bitshares was the first system to use DPOS, and the technological advantages were apparent right off the bat. Bitshares was far and away the fastest blockchain on the block, and was such a technological success that Larimer declared that mining, with all of its faults, was no longer needed.

Unfortunately that declaration caused panic among those that had significantly invested into the POW system; those with power never give up easily, and the industry rallied around a new up-and-coming blockchain called Ethereum (Ethereum uses POW). This industry wide snubbing of Bitshares was unfortunate, but not unexpected; radical change does not come easy. Fortunately, the system Larimer had created could not be ignored; as the system matured it was clear that DPOS was leaving POW in the dust.

The proof is in the numbers. As of today, Steem, Golos (a fork of Steem), and Bitshares process over half of all the industries transactions. Steem and Bitshares hold records for processing over a million of transactions a day, all without slowing down or using up large amounts of bandwidth. Meanwhile, Ethereum has hit a glass ceiling, struggling to support the meager amount of Dapps currently created in its environment, and Bitcoin can’t even see beyond the first floor. Blockchain developers that are smart have seen were POW will leave them, and have started to pivot to POS and DPOS systems.

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