New Cardano (ADA) Ouroboros Research Paper Details Proof-of-Stake Sidechains from the IOHK Team

The scalability problem has remained one of the largest issues that cryptocurrencies have to resolve before going mainstream, and different projects have attempted to handle it in different ways. According to a paper recently published by a team of researchers, Cardano (ADA) might be one of the first projects to come to a temporary solution.

The paper outlines the structure of a sidechain construction that is fully compatible with Cardano's Ouroboros system. It is also compatible with other PoS (Proof-of-Stake) systems, including Snow White, Algorand, and others.

According to researchers, this is the first paper of this kind, and it was published by IOHK team, including Aggelos Kiayias, Dionysis Zindros, and Peter Gaži. The paper is called “Proof-of-Stake Sidechains,” and it was posted on December 31st, 2018.

Cardano's Charles Hoskinson was quick to announce the news, pointing out that this marks a significant milestone in otherwise crypto-unfriendly 2018.

How does the paper affect PoS systems?

Simply put, sidechains are small-sized blockchains that are connected to a larger blockchain by means of a two-way peg. This connection allows the sidechains to communicate with the larger blockchain, and improve scaling, interoperability, and other features. Also, they can serve as test-chains for any and all upgrades that developers may come up with in the future.

The paper proposes several innovative changes that are bettering the concept of a sidechain network. The changes in question include the addition of a new firewall, a PoS-compatible structure, a new pegging method, and a way to mitigate sidechain attacks. Generally speaking, it focuses mostly on improving security and making the network more practical and easy to use.

As mentioned, it is of a massive significance to Cardano, but also to other PoS systems. Researchers have also stated that their new sidechain network construction can support secure cross-chain transfers, while it also maintains the firewall even in cases of one-sided failures. That way, all potential damage will be contained in a chain that was violated in the first place, while the rest of the network remains safe and isolated.

This marks a significant milestone for Cardano, and it indicates a bright and prosperous future for the project.

Meanwhile, Hoskinson has published another tweet, this time on January 1st, in which he looks back on the previous year, and what it meant for Cardano.

In the attached video, Hoskinson talks about difficulties in creating Cardano, and making an “open document that's mostly aspirational into execution.”

Most of 2017 and 2018 were dedicated to achieving this, although Hoskinson predicts that it will likely take at least three to five years before Cardano development reaches the conclusion of what the team has planned, for now.

This supports the overall opinion that Cardano is still in its early days. Despite this, the coin has already grown to be very successful, and it is counted amongst top cryptocurrencies of 2018. It is still unclear what will the project look like once it reaches its final stages, although many investors see it as one of the coins of the future.

While there is still no certainty when it comes to anything that is crypto-related, Cardano's progress seems to be moving ever-onwards.

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