Cardano Hits Major Decentralization Milestone; 50% Of Block Production Come from Community Stake Pools

  • Cardano blockchain is in the final half of its journey to total decentralization.
  • Over 1,210 staking pools are live – surpassing the targeted 1,000 marks.

The lead development organization of Cardano, Input Output Hong Kong (IOHK), announced public staking pools are now validating over 50% of the blocks. The statement on Twitter shows that the blockchain is gradually moving towards total decentralization following the launch of the long-awaited Shelley mainnet earlier this year.

Cardano, a brainchild of Ethereum’s co-founder, Charles Hoskinson, is transitioning from a federated system operated by the IOG, the creators, to a fully decentralized blockchain controlled and operated by the public stake pools.

Following Shelley's launch, Cardano began its journey to total decentralization with “the percentage of blocks produced by public stake pools increasing at every epoch until block production on Cardano becomes fully decentralized.” The statement reads,

“Currently, 50% of the blocks are [validated] and produced by the stake pools.”

At the Shelley mainnet network launch in late July this year, ADA (Cardano’s native token) holders can now delegate their tokens to community-run stake pools and earn rewards. Before, in the earlier centralized era of Byron, the IOG produced the blocks and earned rewards to ensure the continuous development of the blockchain.

At epoch 3, the Cardano blockchain introduced the first decentralized stake pools minting ADA token. Currently, at epoch 227, a total of 1212 public stake pools have joined the minting process, as of writing – surpassing the targeted 1,000 stake pools.

With the rise of community stake pools, IOG (federated IOHK nodes) will delegate a substantial stake to other community pools. This is an effort not to increase “D” and avoid the re-centralization of Cardano block production, Kevin Hammond, IOHK’s software engineer, stated in a blog post in August.

As of Friday this week, Cardano expects the d-parameter (decentralization parameter, whereby d=1 is completely centralized and d=0 is fully decentralized) to drop to 0.48 – showing the Cardano community will be running most of the block production.

Interesting times ahead for Cardano ahead!

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