Cryptocurrency Knowledge Test

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A blockchain network uses a Delegated Proof-of-Stake (DPoS) consensus mechanism. How are the nodes that validate transactions and produce new blocks determined?

All nodes with a sufficient stake are randomly selected to produce blocks. The nodes with the most powerful hardware are chosen to be block producers. Token holders vote to elect a limited number of 'delegates' or 'witnesses' who are then responsible for producing blocks. A centralized company that created the blockchain appoints all the block producers.

Correct Answer:

Token holders vote to elect a limited number of 'delegates' or 'witnesses' who are then responsible for producing blocks.

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