Technology from Cardano (ADA): the Ouroboros Protocol

The Ouroboros protocol by Cardano represents a major advance in blockchain technology. Discover how it differs from other protocols regarding its special characteristics, such as epochs, VRF, and stake pools.

Because it was not created to be similar to or compatible with Ethereum and its Ethereum Virtual Machine, Cardano differs from most other smart contract technologies (EVMs). Instead of being built on Ethereum, Cardano more closely resembles a POS smart contract-enabled version of Bitcoin. The Ouroboros base protocol, its distinctive multi-layer solutions, the Extended Unspent Transaction Output (EUTxO) accounting model, and the use of Haskell as the base programming language are the primary features that set Cardano apart from other projects.

Accord Mechanism of Cardano

A decentralized network of nodes/computers must come to an agreement over a shared state among its independent participants for the network to operate as intended (e.g., who owns what on a blockchain). Additionally, the network should maintain legitimate consensus while doing this despite inaccurate information or malevolent actors (Byzantine Fault Tolerance). Different blockchains use various techniques to accomplish this, but all work to develop a “consensus algorithm” that is most appropriate for their chain.

In public blockchain/distributed computer design. Consensus methods are used to persuade nodes in a decentralized system to agree on the next valid state. This indicates that at least 51% of network nodes concur on the network’s overall state. In the case of open blockchains like Bitcoin and Ethereum. Additionally, a consensus algorithm often provides an assurance (probabilistic or deterministic) that network nodes can agree on the following acceptable state. Even if a certain proportion of hostile nodes exist in the system. Nakamoto Consensus is the consensus algorithm used in Bitcoin. Ethhash is the name given to it for Ethereum.

To guarantee that transactions cannot be undone, Nakamoto’s consensus calls for waiting until several further blocks have been created. Because of their probabilistic finalization guarantee, Nakamoto chains have poor transaction speed but great uptime (they never crash or halt). This is due to the Nakamoto Consensus requirement that “enough” blocks be mined on top of the block that contains the user’s transaction before it becomes economically impractical to rearrange or reverse the blockchain. This provides some “economic certainty” but never theoretic/deterministic certainty.


A problem with enabling anyone to take part in an open network’s consensus is that one malevolent actor might build countless nodes, leading to the creation of several identities, as demonstrated by the blockchain. Theoretically, one person may take control of the Cardano network by building enough nodes, a technique called a Sybil attack. For this reason, in addition to its Consensus process, blockchains also require a Sybil Resistance mechanism.

On the other hand, a decentralized system prevents Sybil attacks using a Sybil resistance mechanism. When a single node can overwhelm the network with multiple identities. And use them to amass an excessive amount of power, this is known as a Sybil assault.

An ideal decentralized system would have one vote per node. The system is open to attack if a node can impersonate several other nodes. And obtain 100, 1,000, or more than 10,000 votes instead of only one. Sybil attacks are often avoided by forcing nodes. In order  to provide evidence of a challenging-to-fake resource (unlike online identities, which are easy to forge).

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