Cardano’s streak of success continues to surprise an ever-growing community that follows the project with high expectations. Of all the projects in development, Cardano is one of the most closely monitored. Created by a team of former developers of the Ethereum network, the famous blockchain 3.0 not only promises to solve the problems of Bitcoin and its “Proof of Work”(Pow) but is now working on solving the problems of the “Proof of Stake” (Pos) algorithm as well.
Cardano is currently in a bullish trend, with a growth rate close to 10% in the last seven days. At the time of writing, it had a registered market cap of $9,325,889,491. Such an increase in its value caused it to take the position of Litecoin as the crypto with the sixth place regarding capitalization. Litecoin is currently quoted at $8,473,708,485.
It is also important to note that this makes Cardano the leader in the list of altcoins with market caps below 10 million dollars.
On February 14, 2018, Litecoin – which was below ADA on Coinmarketcap – had managed to achieve higher capitalization. This milestone excited the community quite a bit, especially Charlie Lee, who was optimistic about the currency’s growth. “The Flappening” was an event in which Litecoin would dethrone Bcash from its place on Coinmarketcap. Something that now seems more difficult for the veteran crypto who will have to compete against Cardano and EOS to achieve this goal. Currently, EOS has 2X LTC’s market cap whereas BCH hits almost 3X.
ADA’s performance has recovered from the general bear market downturn at the beginning of the year. Heikin Ashi’s candles allow to easily visualize the medium term trends, with an almost parabolic behavior. The downward trend began to reverse in mid-March, breaking the resistance of the 3165 satoshis around the time, in search of a new resistance on the 5600 satoshis. The Relative Strength Index (RSI) is showing a strong buying trend. Something that — beyond the technical analysis — could be due to the important announcements that the team has made.
Ouroboros Genesis: Proof of Stake is now “Solved”
A few days ago, a tweet from Charles Hoskinson announced that IOHK, the engineering company founded by him and Jeremi Wood focused on the research and development of blockchain technologies, had successfully perfected the Ouroboros Genesis protocol, a form of PoS implementation that solves several problems with the original algorithm. According to Hoskinson, this development would be one of the company’s biggest achievements, as it would allow the execution of a PoS algorithm with the same properties that make PoW the preferred algorithm.
After that announcement, a controversy arose on the social networks. One of the first people interested in learning more about the project was Vitalik Buterin himself, who, in a Reddit thread, asked Hoskinson for more explanations about the project itself and why he was so optimistic:
“Thanks for publishing! Can you try to summarize in a few sentences what the key innovation is and how it improves on your previous designs?
(The previous designs I would summarize as basically being NXT-style chain-based proof of stake, but using a fancy VRF scheme for pseudorandom proposer selection)
Edit: also, when you say “composable” proof of stake blockchains, what do you mean by that? What are you looking to compose Ouroboros with?”
Hoskinson’s claims of solving PoS problems were also questioned as they had some flaws in their configuration:
“That said, there are limits to this kind of heuristic. If there’s any point in the blockchain’s history where less than some portion p of validators are online, and you can get your hands on old private keys for q > p of coins active then, then you can create a new history that appears to outperform the original.”
To this, Hoskinson responded, clarifying the concepts and his position on Buterin’s hypothesis:
“Universal Composability: https://eprint.iacr.org/2000/067. Tl;dr PoS without checkpoints. Come to EuroCrypt in Israel. Happy to discuss in person
Notice the assumption since Praos is forward security, old private keys do not exist. As for the threshold p, this is a reasonable tradeoff as we are assuming convergence to a network structure like bitcoin with a collection of reliable stake pools. Falling below this threshold would be an unlikely and detectable event that could resolved out of band.”
Vitalik continued to question the concept, being skeptical of Hoskinson’s hype:
“OK, so this is ultimately an honest majority model, made slightly stronger by the fact that private keys are cycled, and old ones are deleted by default (that’s basically what “forward secrecy” means). I do agree that is likely to reduce the risk that old private key markets will happen in practice.”
This seems to have triggered Hoskinsons patience, who took the discussion a little more personal.
The implementation of the protocol has not yet been discussed; however, the promising results seem to have aroused the interest of investors, causing a considerable increase in the market cap of this famous blockchain which seems to be set to steadily grow.
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