How Shelley Phase Improves Security and Efficiency on Cardano – Bittime

The Shelley Phase is an important stage in the development of the Cardano blockchain which began in July 2020 with the launch of the Shelley code. This stage aims to transform the protocol into a fully decentralized blockchain. Significant changes occurred with the introduction of proof-of-stake consensus, delegation schemes, and incentives, allowing ADA holders to stake and vote on transactions.

Function Shelley Phase

Improve Security and Scalability

The Shelley Phase aims to improve network security and scalability by introducing proof-of-stake consensus. This provides users with the opportunity to stake ADA, vote on transactions, and earn rewards.

Delegates and Stak Pool Operators

The introduction of delegation allows ADA holders to delegate their stakes to stake pool operators running nodes. Operators of these stake pools receive rewards for processing transactions, creating a more decentralized ecosystem.

Completely Decentralized

The Shelley Phase marks the moment the platform becomes fully decentralized, where network participants are responsible for maintaining the network, earning rewards as an incentive for their participation.

Example Shelley Phase

Rewards from Staking

Cardano users can stake their ADA tokens and earn rewards as a result. The more ADA is staked, the greater the rewards token holders can earn.

More Efficient Transactions

By staking ADA, transactions on the Cardano network become cheaper and faster. This provides significant efficiency gains for users.

Increased Opportunities through Pooling

Staking pool operators allow users to join staking pools, increasing the opportunity to earn rewards while reducing individual risk.

Real-time Monitoring with Ouroboros Praos

Ouroboros Praos algorithm enables real-time reporting on block production and performance, providing better visibility to users.

Delegation for Rewards Without Direct Participation

Users who do not wish to directly participate in staking can delegate their ADA to other users who will stake on their behalf.

Launch of Shelley Phase Opens Exciting Opportunities for Cardano Users

Rewards: Staking ADA on the Cardano blockchain will allow you to receive rewards in ADA. The more ADA you stake, the more rewards you can earn.
Transaction: Staking ADA makes transactions cheaper and faster.
Pooling: Staking pools allow you to join other users to increase your chances of earning rewards while reducing risk.
Monitoring: Ouroboros Praos algorithm enables real-time reporting on block production and performance.
Delegation:If you want to earn rewards without directly participating in staking, you can delegate your ADA to other users who will stake on your behalf.

Cardano Development Plan

Byron (2017)

The Byron era is the foundation era of Cardano. It started with the mainnet launch in 2017 and finished in February 2018.

Shelley (2019)

Shelley focuses on decentralization and automation. It is said to include a treasury system to fund future development and support incentives for stake pool operators. Shelley was supposed to be finished in 2019, but was released in 2020.

Goguen (2020)

Goguen focuses on smart contracts and metadata standards for them. It helps developers create decentralized applications on the Cardano blockchain by developing a smart contract language called Plutus. The Goguen Era is named after Joseph Goguen, a computer scientist who worked on mathematical semantics for programming languages and developed algebraic computational models, including abstract state machines.

Shelley Phase opens up new opportunities for Cardano users to increase profit potential, transaction efficiency and participation in the decentralized ecosystem. In this way, the Shelley Phase not only brings innovation to the Cardano blockchain world, but also has a positive impact on users and the ecosystem as a whole.

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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.

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