The Ouroboros Proof-of-stake (PoS) Algorithm is the most important part of the protocol. Cardano uses a new proof of stake algorithm called Ouroboros, which determines how individual nodes reach consensus about the network. The algorithm is a crucial part of the infrastructure that supports the Ada cryptocurrency and is the major innovation in the blockchain technology.
The creation of the platform began in 2015. At the same time, the ICO was launched, which lasted until January 2017. In total, 62 million dollars were collected.
Cardano is a non-centralized platform for the extensible transfer of rate. It’s ensures high reliability of all operations. As the main method of protection is used Proof-of-stake, which is the most reliable.
- Main article: Cardano
Proof of stake is the method for protecting crypto-currencies, where the probability of users forming the next block in the blockchain is proportional to share units of cryptocurrency belonging to participant and to their total number.
ADA is the Cardano currency, and it is used to receive and send digital media. The developers believe that digital money, such as Ada, shows the future of money “This allows you to quickly transmit direct transmissions with the guaranteed security through the cryptography,” the developers say.
Ouroboros is an alternative to the method of confirming the performance of work in which the probability of creating the next block is higher for an owner of the more powerful equipment. The key advantage of Cardano is using a multi-level principle of building a network. It happens thanks to CSL and CCL levels. Cardano is flexible and does not require forks to make any changes work. Cardano has great ambitions to become a platform for complex calculations with the operation to control level. But with all the aspirations of developers and investors, Cardano is unlikely to completely solve the scalability problem within the next two years. This is confirmed by the developer of Cardano Charles Hoskinson.
Ada has the same shortcomings as most crypto currencies and depends on the implementation of the project plans. In addition, the small amount of transaction processing is completely inconsistent with the plans for large-scale application. The final product is promised only by 2020, so the demand for ADA varies step-by-step after the appearance of regular news about support or plans from the developers. A very high competition in the market of cryptocurrencies, the uncertainty in technological decisions and control of a certain number of nodes will prevent Cardano from safely entering the absolute top-level crypto currency. Of course, the rapid growth of the fresh currency and the proposed ways of development of blockchain are the absolute advantages of Cardano. However, it’s still too early to talk about obvious superiority over other cryptocurrencies.
To achieve good security, Cardano’s Ouroboros uses a mathematical proof of security. The proof-of-security system is based on persistence and liveness properties of a robust transaction ledger. Proof-of-stake is much better than proof-of-work when it comes to scalability which is why, the advancements in question is a big deal for Cardano ADA. Because of it, Cardano is one of the most secure and scalable blockchains on the market.
Multi-level protocol Cardano has a complex system of communication with project management. This ensures full decentralization, because developers have minimal impact on their own system. They can regulate the technical side of the platform, but this does not affect the course or anonymity of the Cardano cryptocurrency. The administration layer is reliable for executing the smart contracts on which the platform relies. The only thing that is under control of developers is the black list of users, where attackers, scammers and spammers are being posted.
In addition, the platform provides the maximum level of confidentiality to all user data and money operations.
The new version of algorithm achievement which includes a series of updates, will help Cardano become a fully non-centralized and autonomous system.
See Also on BitcoinWiki