Cardano (ADA), meet the new giant of the blockchain ecosystem

To talk about how Cardano works is to talk about innovations in the world of blockchain technology, some of them unique in their style.

Ouroboros, a PoS protocol for Cardano

When we talk about the operation of a cryptocurrency, the first thing that comes to mind in the consensus protocol it uses and, in this case, Cardano gives us a pleasant surprise: Its algorithm is unique designed specifically for your blockchain. This algorithm is called Ouroboros, a name that refers to the mythical creature of the same name that symbolizes “the eternal cycle of things.”. & nbsp; In Cardano’s case, this name goes perfectly, because Ouroboros is the building block of its blockchain creating “the eternal cycle that will make run your blockchain“.

Ouroboros is a consensus protocol of the PoS type (Proof & nbsp; of Stake or Proof of Stake), however, up to there Finish the comparison with this protocol. The reason for this is that Ouroboros implements a very different formula in its operation to make Ouroboros the most secure PoS protocol out there. First of all, to participate in the block generation system, Ouroboros asks you to have a certain amount of coins (your participation) inside a special node (validator node). Thus, the more economic participation you have in the system, the greater the possibility of generating a block and earning the reward for it.

A time frame to improve security

But additionally, Ouroboros creates a temporary and random assignment mechanism to make the validator nodes able to participate safely within the system. This temporary system is divided into two parts: the epoch (Cycles) and the Slots (Intervals). Epochs are a time framework that is configured to last 5 days, while slots only last 1 second. So we have that; In each epoch, there are actually a total of 432,000 slots, and all of those slots are spread over a total of 21600 blocks (the total historical average is 21400 blocks). This is possible because the generation of blocks in Cardano occurs every 20 seconds. & Nbsp;

Now you will ask Why? this division in time within the Ouroboros protocol? The answer is that in this way it is more difficult for an attacking group to alter the participation result within the network. For example, a stake pool could have a huge amount of ADA set aside to be used as a bridge to get the assignment to generate a block and earn a reward.

But, with the division of epochs and slots, Ouroboros can enforce election rules that avoid this type of harmful attitude for the network, because it is a form of centralization. Thus, Ouroboros avoids one of the main problems of PoS, the centralization of the power of generation due to the fact that there are stake pools with a lot of money within the network and with this, they obtain the highest chances of being chosen as validators.

Another additional point of this epoch and slot system in Ouroboros is that the validator nodes that have carried out their correct generation work will only receive their rewards at the end of each epoch. This rule prevents a group from being able to manipulate the total stake of the network in short periods of time to gain the opportunity to generate blocks, and disappear at the slightest opportunity, if it has obtained the profits at the time. Something very similar to what happens with PoW in Bitcoin, where miners can only withdraw their earnings after 100 confirmations from their respective coinbase.

We wish to thank the writer of this post for this outstanding web content

Cardano (ADA), meet the new giant of the blockchain ecosystem

Dispensary Business News