Proof of Stake to be a Thing of the Past?
In an interview in April, the CEO of IOHK stated that “proof of stake is solved” and the internet has been roiling with interest. The claim stems from a paper and a twist on the blockchain that brings consensus, called ouroboros. The team at IOHK maintain Ouroboros may be the answer to one of crypto’s most divisive questions – whether so-called proof-of-stake systems offer solutions to some of the industry’s pressing problems.
The market seems to be interested in the opportunity to support this. Ouroboros will soon power the public blockchain Cardano, and it may one day support the world’s eight largest cryptos with its 25 billion ADA tokens worth $3.3 billion
Coindesk details more this theory and brings up something that Nate Rush, a proof-of-stake researcher for Ethereum said.
“Different consensus algorithms do well in different environments,” Rush told CoinDesk, “If the assumptions that some protocol is ‘solved’ under turn out to break or be unrealistic, then this protocol can fail.”
First pitched by developers Scott Nadal and Sunny King in 2012, proof-of-stake offers what is claimed to be a more sustainable alternative to proof-of-work, the consensus method underlying the world’s biggest blockchain by market cap, bitcoin.
Allowing users to vote or “stake” their coins on a transaction history in exchange for rewards (instead of burning computational energy), it’s relatively untested, having so far only been adopted in hybrid, small-scale or delegated formats.
Furthermore, IOHK has secured academic partnerships and also various relationships with researchers in the field of distributed computation in order to prove the proof-of-stake can actually be achieved.
Yet, it is unclear how this protocol will perform when live and set free in the wild.
Lastly, Cardano also has met with Google. The two companies had an informal conversation probing CEO Charles Hoskinson. The internet was abuzz with rumors that Cardano and Google were going to pair up, but this was hearsay and clearly a misunderstanding.