Wednesday, April 24, 2024

Cardano Preparing For a Series of Radical Changes in the Blockchain Industry

Eradicating the issues of lack of transparency in the financial realm, blockchain technology has emerged as a promising solution by providing means of digital goods, assets and data. Blockchain is a secure transaction database shared by all participating parties in a distributed network. It keeps track of all the necessary records and secures every transaction that happens in the network. It is quite evident that blockchain’s primary aim is to eliminate the need for a third-party payment processor that hampers the transparency. 

Cardano- A Decentralised Open Source Platform

Over the years, the blockchain industry has witnessed tremendous growth as more and more industries are inclining towards this radical technology. There are plenty of platforms that facilitate cryptocurrency trading and encourage blockchain technology. Cardano is one such decentralised blockchain and cryptocurrency project that is completely open-source. It streamlines the ADA cyptocurrency transfers.

Not only facilitating digital funds and promoting cryptocurrency trade, but Cardano is also working towards developing a smart contract platform brimmed with advanced features. With the inclusion of this smart contract platform, Cardano will be able to run decentralised applications (DAPPS). Cardano is well known in the industry as the first platform that is developed from a scientific philosophy and driven by a research-first approach. 

Cardano Stakeholders And Slot Leaders

Ouroboros is a proof of stake algorithm used by Cardano in order to determine how individual nodes make consensus. Instead of proof of work that increases the energy consumption, Cardano utilises proof of stake as its consensus mechanism. Cardano staking works by generating a new block from a single node that depends on their economic stakes in the network.

In layman terms, nodes are used to create a new block based on the probability equal to the number of coins in the node’s possession. Hence, the higher the coin holding by node, the more will be the chances for that particular node to generate a block. Nodes with positive stakes are known as the stakeholders in Cardano and nodes that are used to form a new block are deemed as slot leaders. 

Stakeholders solely operate the Cardano protocol as these nodes are further used to generate slot leaders. The staking in Cardano works with generating blocks. A slot leader will monitor transactions that are made by other nodes. The block is further signed by the slot leader with its private key before publishing it to the network. 

Read more: 5 Best Cryptocurrencies To Invest Under $1

Cardano Reward Scheme

Cardano also comprises of a rewarding system, wherein, slot leaders who contribute by investing their resources to generate new blocks are rewarded. The fee distribution and distribution scheme that will become a part of Ouroboros was in the review stage earlier. Recently, a revelation has been made that Cardano (ADA) holders will start receiving their stake rewards.

Charles Hoskinson, CEO, IOHK, company behind Cardano revealed the Cardano staking reward scheme at the Cardano Summit in Bulgaria. Charles added that the recently launched decentralised version of Ouroboros Genesis consensus algorithm, Shelley Testate is focusing on staking protocol functionality.

In its further stages, ADA holders will take part in testing staking functionality. Hoskinson further revealed that coins from the secondary market would not be qualified for staking restricting users to sell coins they receive as stake reward. By the first quarter of 2020, new coins will be transferred to the network. 

Cardano- Aiming For the Next Boom in Blockchain Industry

The 12th largest blockchain platform in the world, Cardano is making a revolution in the industry with its transformational developments. With Shelley that uses Ouroboros Genesis algorithm, Cardano aims to create consensus mechanism that is even more decentralised than Bitcoin.

Monesh Kumar
Monesh Kumar
Monesh Kumar is a cryptocurrency and blockchain enthusiast. He trades cryptocurrencies and holds some but he prefers holding Bitcoin, Ethereum & Cardano.

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