What is a Block Producer?
Block producers provide the infrastructure required to run the underlying network layer to process all transactions. Some block producers run their own “Bare Metal Servers” meaning they own and operate their own physical equipment . Other Block producers provide the service by using third party cloud services.
The “Delegated Proof of Stake” or DPoS consensus algorithm, which is the system that EOS.IO operates on, Block Producers replace the concept of “miners” as the custodians of the network, Technical White Paper.
DPoS differs from proof of work consensus , used by Bitcoin and Ethereum, because there is no expensive, wasteful electricity that is paid for through inflation and new coin emission, instead Block Producers service the community and network, implement arbitration decisions when instructed and make the hardware investments required to scale the network. This is “paid” for through inflation.
All BPs are continually competing to align best with voter and community interests, in order to be voted from back up node to full block producer, which means many will be community focused in doing projects to educate, build dApps that strengthen EOS and so forth.
As a token holder you are under no obligation to vote, although in order to vote users must “stake” their tokens for at least 3 days. EOS token holders are highly encouraged to make an informed vote as voting for the best BPs who reinvest in the network will ultimately be reflected in the value of EOS Tokens.
Explaining the Role of an EOS Block Producer
EOS Costa Rica Information
Please visit EOS Costa Rica website