Probably the 2nd year for China Block, the year to move to the Proof of Stake mechanism. The Queensland website has published an article in this regard that we will read below. The most well-known digital currency PoS-based networks, Ethereum and Cardano, are set to launch in the first quarter of next year. Or, to put it another way, with the new consensus algorithm.
China’s second blockchain-based platform, Ethereum, has been seeking to change its consensus algorithm from proof-of-work to proof-of-equity for the past six years. The founder of Ethereum, Vitalik Butrini , says stock-proofing for Ethereum means reaching maturity.
The first version of Ethereum was a desperate attempt to build a global computer. Ethereum 2 with its stock proof algorithm will actually be a universal computer.
The concept of proof of stock has been and has been around for years, but its applications in networks such as Tesos, IAS, and Kazmas use stock proofs, as compared to Proof of Work currencies such as Bitcoin and Ethereum. It did not arrive and could not show itself.
With a stock-based extraction, validators should have a currency that validates it. As forgeries always own some of the counterfeit coins and banknotes they produce.
There will be no extraction anymore and there will not be much electricity used to solve math problems. Proponents of stock proofs believe that this system will be more scalable, more stable and secure than traditional systems such as proof of work.
Instead of launching a new stock proof system, Cardano is looking to upgrade its current PoS platform as a public network.
Currently Cardano, the twelfth digital marketplace by volume of capital, is governed by a federal system of transaction validation consisting of three organizations. The three organizations are: Cardano Foundation, Input Out Hong Kong (IOHK) and Emurgo. A structure that has received a lot of criticism for being too focused.
Charles Hoskinson, CEO of IOHK, one of Cardano’s backstage, said in an interview about next year’s promotion of the network called Shelley:
This is a starting point for completely putting the (cardanoo) protocol in the hands of society.
Tim Ogilvie, founder, and CEO of the Staked Multi-Blocking Stock Service believes Year 2 has been a great year for stocks. He stated:
You have millions of dollars of stock-proof assets that work without any problems, and billions of dollars are spent on electricity. Right now, you’re going to see big projects like Cardano and Ethereum expand on that. We’re definitely excited.
He further added:
There are probably 1 or 2 currencies based on proof of equity stocks and high market value, and Cardano is one of them. That’s why we got into this business. All of these amazing projects, like Ethereum, are either stock-proof or stock-like like Cardano.
Cardano as a test case
Cardano is a running prototype of the stock-proofing system capabilities for a global audience. Hoskinson, who was one of the early founders of Ethereum, acknowledged:
The research and engineering of the last two years has led to this point.
Instead of external computing costs and the energy needed to power the grid, such as a proof-of-work system, stock-proof systems rely on internal incentive mechanisms for user participation.
Many years of academic research has been done to coordinate and tailor the correct amount of network rewards against penalties for the purpose of smoothly and securely implementing a stock-based China blockchain.
Kathleen Breitman, one of the creators of China’s public block-based Tesos stock-proofs on Cardano’s long-term roadmap, says:
I can remind you, as a matter of fact, that watching and developing a stock proof network is very difficult and unpleasant. Switching to a stock proof network or setting up a stock proof network is an extremely difficult process. The reason for this is that the coordination costs are very high, above all else. This is not a trivial matter.
Soon after the upgrade, Cardano plans to add smart contract capabilities that make decentralized applications work. This stage of development is called Goguen. After that, Cardano’s team is looking to increase the scalability (Basho phase) to reach a record of 2.5 transactions per second. In contrast, the atrium is currently only capable of processing 1 transaction per second.
The full development of the Cardano platform from Shelley to Basho and its additional phase, Voltaire, which is dedicated to the intra-chain organization, is expected to be completed by the end of the year.
Cardano was able to raise about $ 5 million at the beginning of the year and during the ICO. Hoskinson then told Quindsky that IOHK had attracted a “9-digit” amount in the process of raising funds through corporate and government partnerships for China Cardano Bloc.
Last month, during the annual Cardano Summit, the project’s newest partnership, co-operating with the New Balance sportswear manufacturer, was announced.
Hoskinson is constantly traveling and flying between cities and projects. Hoskinson says she travels between two and three days a year. In addition to Guggen, Shelley, and Basho, his company IOHK is also developing a solution for China’s blockchain Atala.
Unlike most digital currency company executives, Haskinson focuses on developing countries and is involved in project management in countries such as Mongolia, Rwanda, Ethiopia and more.
Hoskinson formed his 7-person team in 2006 and now has 7 contractors and employees around the world. He is convinced that IOHK has acquired sufficient technical knowledge to complete the Cardano project fully.
Bob Summer will, Executive Director of Classical Atrium, called the project a “World Class Development Team” that focused on the opinions and opinions of academic peers. Given that Butrini and Haskinson would not disclose details of their stock-proofing projects, Somerville told Quinnettsk:
Personal competitions do not have the essential similarities between Cardano and Etrium, “sibling projects with similar genetics”.
Also, despite Haskinson’s technical challenges, he must maintain his position among his partners, something that has not always been good.
He was a key member of the Ethereum founding team until June but was asked to leave the project. But rain wanted the foundation for Ethereum, but Haskinson wanted a corporate structure.
Hoskinson also dropped out of the Cardano Foundation, which was signed as part of a six-year initial contract to build a Chinese block with a group of Japanese traders in year 6. The independent, nonprofit was set to manage community growth by 2018 until the power divide between Haskinson and the Foundation led to Haskinson’s acceptance of leadership.
If Haskinson succeeds, he must keep everyone happy for a considerable time. Keeping a complex set of projects going despite the problems will lead to the implementation of PoS as well as overcome the management challenges it will probably take years. Year 2 will be the beginning of this process. As Hoskinson said:
These are the early days.