Cardano introduces proof-of-stake by completing Shelley hard fork.
It is designed to challenge Ethereum’s lead position hard forked from the centralized Byron network into the decentralized Shelley network.
The team behind Cardano, IOHK, and its CEO Charles Hoskinson says that Cardano has been carefully developed over five years while “hundreds” of assets are expected to be running on the blockchain in a year’s time.
Shelley will increase “security and robustness,” while enabling more blockchain use cases.
The upgrade will utilize the Ouroboros consensus algorithm – a proof-of-stake (PoS) protocol leveraging cryptography, combinatorics and mathematical game theory.
By implementing Shelley on Cardano’s mainnet, staking pools will now be able to register on the chain visible to token holders.
This will enabling them to delegate to pools immediately once registered.
The PoS delegation process lets users holding Cardano’s native token (ADA) commit their tokens to a pool for a share of rewards which will incentivize the network to run “accurately.”
Cardano will reach consensus equilibrium once 1,000 stake pools have been established, of which 485 of which are currently live.
IOHK said that Shelley represents a “first step” in a series of enhancements to the network over the coming months with the expectations that its Project Catalyst will launch by year’s end.
Catalyst will introduce a governance model enabling the Cardano community to cast votes on the direction of the blockchain such as software updates, technical improvements, and the long-term future of the network.