Having secured a top ten listing among the most valued crypto-currencies in the world, Cardano has sure developed a unique development approach. They undergo an extensive peer review process when it comes to analyzing development factors and update the block-chain only when a consensus has been reached. This academic approach may be behind their recent financial upturn which was further boosted by their listing on Huobi. The Huobi listing has helped make big strides in bolstering the presence of their ADA token in China. The big news coming out of Cardano right now is the claim that they have solved the proof-of-stake headache.
Charles Hoskinson of Cardano recently released a research paper that had gone through extensive peer review. This paper outlined in detail, the process through which they came up with Ouroboros Genesis, an unprecedented variant of the proof-of-stake algorithm that wipes out the bootstrapping issue and creates a viable solution that helps directly compete with proof of work mining. If the new variant from Cardano works it could mean big things for the growing crypto-currency since it will have solved long-standing concerns about whether the proof-of-stake systems could properly secure funds owned by investors.
Ouroboros could one day support 25 Billion ADA tokens worth 3.3 billion if it proves a success which probably explains why the market has shown great interest in Hoskinson’s thesis. This new variant will move to further bolster the proof of work algorithm and further support the idea that it offered a more sustainable alternative to proof of work. The proof of work consensus model currently used by Bit-coin involves a lot of computer power while the proposed proof of stake model will require users to stake their coins on transaction history and get rewards in return.
Although this proposed model is relatively untested, it has the potential to make things easier for users while saving a lot of computational energy. Though the current proof of work model has sustained Bit-coin for years, most crypto coders believe the new model of proof of stake would help transition the industry into a more sustainable phase. Though caution against a potential unrealistic claim that the proof of stake issue has been solved has been issued by Ethereum researcher Nate Rush, Cardano remains bullish and has moved to form academic partnerships to help prove their case.
Despite Cardano’s bold steps, there is no guarantee of how Ouroboros will behave when it is finally rolled out which has left a big part of the proof of stake community nervous. Renowned crypto commentator and Cornell University professor, Emin Gun Sirer, has however moved to support Cardano’s claim, citing that Ouroboros had a great chance of success since it had been extensively peer-reviewed. Hoskinson on his part expects more research and discussions on Ouroboros and remains bullish that it will work.
