Cardano’s Ouroboros protocol represents a breakthrough in blockchain technology. Find out how it differs from other protocols in its special features, such as epochs, VRF, and stake pools.
Because it was not created to be similar to or compatible with Ethereum and its Ethereum Virtual Machine, Cardano differs from most other smart contract (EVM) technologies. Rather than being built on top of Ethereum, Cardano is more like a smart contract-enabled version of Bitcoin than POS. The Ouroboros core protocol, its distinctive multi-layer solutions, the Extended Unspent Transaction Output (EUTxO) accounting model, and the use of Haskell as the base programming language are the main features that set Cardano apart from other projects.
Cardano Settlement Mechanism
A decentralized network of nodes/computers must agree on a shared state among its independent participants in order for the network to function as intended (for example, who owns what in a blockchain). Also, the network must maintain a legitimate consensus while doing this despite inaccurate information or malevolent actors (Byzantine fault tolerance). Different blockchains use various techniques to achieve this, but they all work to develop a “consensus algorithm” that is most appropriate for their chain.
In public blockchain/distributed computing design. Consensus methods are used to persuade nodes in a decentralized system to agree on the next valid state. This indicates that at least 51% of the nodes in the network agree on the overall state of the network. In the case of open blockchains like Bitcoin and Ethereum. Furthermore, a consensus algorithm often provides a guarantee (probabilistic or deterministic) that the nodes in the network can agree on the next acceptable state. Even if there is a certain proportion of hostile nodes in the system. The Nakamoto Consensus is the consensus algorithm used in Bitcoin. Ethhash is the name given to Ethereum.
To ensure that transactions cannot be undone, the Nakamoto consensus calls for waiting until several more blocks have been created. Due to their probabilistic completion guarantee, Nakamoto chains have low transaction speed but excellent uptime (they never crash or stop). This is due to the Nakamoto Consensus requirement that “enough” blocks be mined on top of the block containing the user’s transaction before it becomes economically impractical to reorganize or reverse the blockchain. This provides some “economic certainty”, but never theoretical/deterministic certainty.
Conclusion
One problem with allowing anyone to participate in the consensus of an open network is that a malevolent actor can build countless nodes, leading to the creation of multiple identities, as evidenced by the blockchain. Theoretically, one person can take control of the Cardano network by building enough nodes, a technique called a Sybil attack. For this reason, in addition to their Consensus process, blockchains also require a Sybil Resistance mechanism.
On the other hand, a decentralized system prevents Sybil attacks using a Sybil resistance mechanism. When a single node can overwhelm the network with multiple identities. And use them to build up an excessive amount of power, this is known as a Sybil assault.
An ideal decentralized system would have one vote per node. The system is open to attack if a node can impersonate several other nodes. And get 100, 1,000 or more than 10,000 votes instead of just one. Sybil’s attacks are often avoided by forcing the nodes. To provide evidence of a difficult-to-forge resource (as opposed to online identities, which are easy to forge).
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