Using Cardano Byron
Cardano is being developed into a secure, sustainable and scalable third-generation blockchain platform for smart contracts. It aims to provide the community with more advanced features than any protocol yet developed and deliver a financial operating system to the people who need a new one. Cardano was built on a first-principles approach that is driven by scientific philosophies and peer reviewed academic research from the ground up. With such solid foundations you can be assured that Cardano delivers security and scalability like no other contract platform.
The aim of Cardano is to weave cryptocurrency and its innumerable advantages – equal economic power, a single point for all transactions, and efficient financial processing, among others – into current financial systems. It aims to change the way cryptocurrencies are designed and developed, and provide a more balanced and sustainable system that accounts for the needs of its users, as well as offering integration to other parts of society.
IOHK’s design emphasis is to accommodate the social aspects of cryptocurrencies, build in layers by separating the accounting of value from complex computation while addressing the needs of regulators within the scope of several immutable principles. Furthermore, where it is sensible, we attempt to vet proposed protocols through peer review and check code against formal specifications.
Using proof of stake for a cryptocurrency adds a mechanism to introduce secure voting, has more capacity to scale, and permits more exotic incentive schemes. It is also more energy and cost efficient, supports rigorous security mechanisms, and reduces centralization. Within a proof of stake protocol, miners accumulate transaction fees thereby adding to their wealth as they go. This encourages stable and steady growth of the blockchain and reduces the instances of stalled transactions that can prevent chain growth.
Ouroboros, our proof of stake protocol, has been designed by an extremely talented team of cryptographers. The innovation it brings beyond being proven secure using a rigorous cryptographic model is a modular and flexible design that allows for the composition of many protocols to enhance functionality.