A person or group, known as a block producer (BP), is selected to validate the transactions of a block and initiate the subsequent block on the majority of Proof-of-Stake (PoS) blockchains.
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A block producer (BP) is a person or group whose hardware is chosen to verify a block’s transactions and begin the next block on most Proof-of-Stake (PoS) blockchains.
What Is A Block Producer?
Block producer is a term used in blockchain ecosystems that use Delegated Proof of Stake (DPoS), which allows users to vote block producers to validate and generate blocks. Block producers are also known as delegates or witnesses. They are in charge of producing new blocks that contain recent network transactions as well as blockchain evidence that the chain’s present state is legitimate.
Block producers are critical to the network’s functioning. They collect transaction data and store it in blocks to validate them on blockchain networks. Blocks are transmitted to the network for validation after they have been prepared. Block producer who produce blocks upload the transaction data to the blockchain after they have been validated.
To understand the concept of BP in more detail, consider the example of EOS block producers. The EOS network is governed by Block Producers, who are decentralized entities. They are in charge of achieving consensus and delivering transaction or data blocks to the EOS network. They act similar to miners on a proof-of-work (PoW) network and staking nodes on a proof-of-stake (PoS) blockchain.
Miners on a Proof-of-Work (PoW) blockchain, such as bitcoin, use a lot of computing power to solve complicated mathematical problems. When the equation is completed by a miner, it is broadcasted on the network to verify by other miners, and the consensus is established. After that, the block is put to the chain, the miner who completes the equation, receives his block reward, and everyone continues to the next equation.
On a Proof-of-Stake (PoS) network, like Cardano, nodes stake a certain quantity of tokens (basically locking them up in a specific wallet address for a set length of time) in exchange for the opportunity to be chosen to add the next block of transactions to the chain.
Despite the notion that the selection is randomized, variables such as the amount invested, the length of time for which it has been staked, and the node’s reputation are frequently taken into account.
Delegated proof-of-stake is a variant of PoS in which validators are elected by the network’s token holders rather than being picked at random.
According to the EOS white paper, the block in the EOS.IO application will be generated by 21 producers known as “block producers.” The EOS design employs Delegated Proof of Stake (DPOS), which involves the community selecting trusted accounts (also known as “trustees”) to produce blocks. Short block creation time, great efficiency, and practically little possibility of forking are some of the benefits of DPOS.
All EOS token holders in the EOS mainnet vote for 21 trustworthy accounts to act as block producers and make decisions on their behalf. They are chosen from the top 21 Block candidates with the highest votes.
The chosen block producers assist the EOS mainnet with processing power and bandwidth. Their primary responsibility is to gather transaction data, bundle it into blocks, and disseminate those blocks to other block producers. They submit the blocks to the blockchain and get rewarded after the verification is done. However, if any of the top 21 block producers do not generate any blocks for the next 24 hours, they will be taken off the list.
The EOS block producer initiative has gained such traction that Google Cloud would become a block producer contender on the EOS network, which is based on Block.one’s EOSIO blockchain architecture.
The interest of the Big tech in block producer projects is a good sign for all the ventures similar to EOS as this industry continues to grow.