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Charles Hoskinson, the CEO of Cardano research and development company Input Output Global (IOG), highlights the importance of consensus building within the network.
The top crypto entrepreneur and developer characterized consensus building as Cardano’s hidden superpower and major competitive advantage.
Hoskinson made this known during a fireside chat with IOG Chief of Staff J.J. Siler and Cardano Foundation CTO Giorgio Zinetti at the Rare Evo 2024 convention. The premier blockchain event happened in Las Vegas between August 15 and 17, 2024.
Cardano’s Hidden Superpower and Competitive Advantage
During the fireside chat, Hoskinson spoke on several issues, including identifying the factor that distinguishes Cardano from other popular blockchains.
“This exercise of consensus building is one of the hidden superpowers and the biggest competitive advantage that Cardano has,” Hoskinson remarked.
Hoskinson’s comment suggests that although many people may not understand the importance of consensus building, it has helped set Cardano apart from its competitors in the blockchain space.
Cardano’s Consensus Model
Building consensus effectively is an important part of how decentralized networks operate. Consensus refers to the majority of network participants reaching an agreement on the blockchain’s state.
This includes determining which block to produce and which transactions to bundle into blocks. It also defines how nodes agree to handle block production and resolve conflicts.
Notably, different blockchains have unique means of achieving consensus. Cardano’s blockchain utilizes a unique consensus mechanism known as Ouroboros.
This mechanism is a proof-of-stake algorithm designed to achieve security, scalability, and low energy consumption. Through the Ouroboros mechanism, validators are selected based on the number of tokens they hold, incentivizing them to act honestly.
Decentralized Governance
Meanwhile, Cardano’s consensus concept is also reflected in its decentralized governance model, which helps to foster a resilient and more adaptable platform. With Cardano’s decentralized governance model, no single entity has absolute control over the ecosystem’s decision-making process. Additionally, the decentralized governance allows ADA holders to create proposal improvements and vote on decisions that could shape Cardano’s future.
In the meantime, the Cardano community is anticipating the launch of the Chang hard fork, a major upgrade marking the beginning of the Voltaire era- the final stage of the network’s development.
The hard fork will help Cardano achieve true decentralization, allowing stakeholders to submit and vote on protocol changes. According to reports, the highly anticipated hard fork will occur on August 27, 2024, giving ADA holders more control over the network’s governance.