A network employing delegation empowers designated entities to act on behalf of others within the system. This structure shifts responsibility for specific operations, such as validating transactions or governing parameters, away from a central authority or all participants, and entrusts them to selected agents. For instance, a blockchain could allow token holders to nominate and vote for a smaller group of validators who then secure the network. These validators, acting as delegates, perform the computational work and are accountable to the stakeholders who elected them.
This approach offers potential enhancements in efficiency and scalability compared to networks requiring consensus from every node. By concentrating decision-making power in a smaller, more manageable group, transaction speeds can increase and operational costs can decrease. Historically, delegation principles have been applied in various governance models and organizational structures to streamline operations and distribute responsibilities. In decentralized systems, it can foster greater participation, as individuals can contribute to the network’s operation indirectly through their chosen representatives. This indirect participation can lead to a more robust and adaptable system.
