It means the blockchain is on the final steps to become fully decentralized. When community members receive the power to vote for/against new blockchain changes, we can expect more user engagement or maybe a price raise.
Cardano Becomes More Decentralized
Decentralization is the promise of most blockchain projects. But not all of them are fully decentralized. Many platforms rely on a centralized organization for development and governance. Some others gove the responsibility for block production to a company. Cardano always focuses on decentralization at all levels. The latest update from IOHK shows the blockchain is moving toward fully decentralization very fast. It gives the responsibility to produce blocks to the Cardano community. From now on, IOHK will not produce any block in the Cardano blockchain.
LEVEL UP! So there we have it, 100% decentralized block production on #Cardano.
Thank you to each and every SPO and developer out there who has brought us here, helping build, run & grow #Cardano. This is a great moment. And we're still just getting started. Over to you… 🚀🧨 pic.twitter.com/MexAv3HhNP
— Input Output (@InputOutputHK) March 31, 2021
Handing over block production to the Cardano community is a strategic milestone for both IOHK and Cardano. The research and development company behind Cardani showed its serious plans for fully decentralizing the blockchain. Now, Cardano is fully decentralized in governance and network. In simple terms, the Cardano community is in charge of the blockchain’s development, governance, and health.
Cardano community consists of 2,000 community stake pools. These members are now responsible for the block production in the Cardano blockchain. The process for handing over the control took about seven months. IOHK and the community wanted to manage the process in a steady peace to ensure the network doesn’t experience problems in the upgrade. The process was a result of cooperation between IOHK and Cardano’s staking pool community. Aparna Jue, Product Director at IOHK, said in a press release to crypto-economy:
“Since the Shelley update in July last year, we’ve been working with our stake pool operator community to ensure that the steady transfer of responsibility for block production in Cardano is predictable and smooth. This is a key milestone in Cardano’s development, as it is the first component of the handover of control to the community. This is a process that will continue throughout the rest of this year. Peer to peer network decentralization is next in our sights, along with implementing advanced governance features to hand control of the blockchain over to the Cardano community.”
Cardano blockchain aims to create a financial operating system that can run autonomously. Decentralization is one of the most critical aspects of this project. The latest update shows everyone in the Cardano community wants to move on this path.
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