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October 4, 2022
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Cardano in countdown to full decentralization

Cardano’s community network, with more than 1,800 pools, will be responsible for 100% of the production of blocks in less than a month, since the project is going to total decentralization

Less than a year after the launch of its network of federated nodes owned by IOHK, Cardano is scheduled to achieve full decentralization by the end of March 2021. At that point, the already established network of more than 1,800 community pools will be responsible for produce all new blocks.

Cardano seeks total decentralization

As D-Day approaches (= 0), IOHK, the company behind the popular Cardano blockchain project, posted a post highlighting the most recent milestone in its development.

Cardano is on its way out of the realm of centralization in less than a month. The post explained that after the launch of Shelley update in July 2020, the developers built the network so that each block was produced by the IOHK network of federated nodes.

This caused some confusion in the cryptocurrency community, as such an approach was the “antithesis of decentralization”. However, the statement justified this somewhat controversial decision with enhanced security – “a smart approach for the short term, while the network of the pool of interest operator (SPO) goes live.”

In addition, Cardano’s developers created an automatic readjustment process, which reduced the parameter that governs the percentage of transactions processed by the genesis nodes (referred to as d) at a rate of 0.02 per season. This means an increase of 2% in the production of the community block every five days.

Thus, the community has been given a more significant role in the production of blocks over time, which has led to the current situation – only 12% of the blocks are produced by federated nodes. The number will continue to gradually decrease until it reaches zero (also known as D-Day = 0) on March 31.

In doing so, the network will become “fully decentralized”, because “D = 0 pushes power to the edges.”

ADA price update

While the Cardano community is patiently waiting for D = 0, the native cryptocurrency has been on the rise since the beginning of the year, despite recent downturns.

The ADA entered 2020 at about $ 0.18 before skyrocketing to an all-time new record, above $ 1.5. After this 730% increase, the asset resumed slightly intact with last week’s market drop, but remained well above the $ 1 mark.

Naturally, the ADA price increase has impacted market capitalization as well. As such, ADA has overtaken other altcoins like Binance Coin and XRP and is currently the third largest cryptocurrency by market capitalization.

Source: CryptoPotato

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