Just a few more days and Cardano (ADA) will be officially fully decentralized! But what does this actually mean, and is Cardano still centralized at the moment? In this article you can read a short explanation.
Cardano is a blockchain network that runs on a Proof-of-Stake (PoS) protocol. This means that users can lock or suspend their ADA. Securing their ADA allows these users to approve transactions. In return, they receive a reward in the form of ADA.
Since Cardano is still under development, so-called federated nodes have helped the network to process transactions until now. This is to minimize any damage in the event of a problem. However, the company working on Cardano, Input Output HK (IOHK) led by Cardano founder Charles Hoskinson, has been handing the key to the strikers little by little for a while now.
Each epoch, or phase of the blockchain, the “d-parameter” is scaled back by two percent. The network will now enter the last epoch before the update will take effect. On March 31, IOHK will therefore no longer be running federal nodes and the network will therefore be fully decentralized. An important milestone.
Hoskinson looks back with satisfaction:
Although not much will change, it is still an important milestone in the run-up to the Alonzo hard fork. This is the update that will activate smart contracts. The developers recently announced more information about this, including the expected launch date!