HDAC Technology, a blockchain-focused firm that received the backing of the giant of the auto industry Hyundai, has recently announced a partnership with CasperLabs, a blockchain startup. The two companies are teaming up in order to create a customized proof of stake consensus protocol.
In case you do not know, proof of stake protocols are the ones that work in a different fashion to Bitcoin. They are decentralized and there are not miners. Instead, the users who already hold the tokens stake them in order to receive a reward for this and validating the network.
A Memorandum of Understanding (MoU) was signed by the two companies at the end of last month in order to assure the partnership. HDAC is also the issuer of the Hyundai-DAC token and part of the idea is to use this protocol in the new token. While the protocol is not finished, the tokens are going to use CBC-Casper, another PoS protocol.
At the moment, the major goal of the two companies is to create a project that is easy to scale and that can grow up without hurting the decentralization of the project. The collaboration is set to last for three years and it will include several events such as hackathons that will happen in both the U. s. and South Korea.
According to Mrinal Manohar, the CEO of ADAPtive Holdings, known as the parent company of CasperLabs, HDAC is set to be the first use case of the technology, as it does not serve any specific purpose yet.
HDAC is set out to solve very significant problems that deal with factors such as supply chains, provenance problems, and capacity utilization.
The first tests on the new blockchain are set to be made at the end of the current year, according to representatives from HDAC. According to this representative, the companies are working on a new core and the testnet is set to be ready in a few months with the help of CasperLabs.
Manohar affirmed that the old proof of work systems are going to be replaced soon and that this will bring the product to a new level.