Cardano

Cardano Scalability

Cardano Scalability

Scalability, A Focal Point of Cardano’s Scientific Peer-Reviewed 3rd Gen Blockchain.

Cardano’s blockchain platform founded by Charles Hoskinson focuses on solving three key problems:

Scalability as defined by Investopedia, is “a characteristic of a system, model or function that describes its capability to cope and perform well under an increased or expanding workload or scope.

Cardano’s Proof of Stake Algorithm, Ouroboros

Ouroboros is a mathematically secure Proof of Stake (PoS) consensus algorithm and was designed with the help of the Tokyo Institute of Technology, the University of Connecticut, the University of Athens, IOHK, and the University of Edinburgh.

Cardano’s Ouroboros PoS algorithm is much more efficient and scalable than that of Bitcoin’s Proof of Work (PoW) algorithm.  PoW uses miners that contribute computing power to compete in who gets to make the next block, and gets rewarded in Bitcoin.

Ledger Nano S - The secure hardware wallet

Proof of Stake on the other hand, uses a ‘stakeholder,’ who is chosen at random, proportionate to the size they have staked per the blockchain ledger.

“’Proof’ means having evidence that blocks of transactions are legitimate. ‘Stake’ means the relative value help by addresses on the node.”

Cardano’s mission in tackling Scalability is divided into three areas:

  • Transactions per second or Throughput
  • Network Bandwidth
  • Data Scaling

Throughput

Measured in transactions per second, or tx/s. As Cardano’s blockchain scales in data, the network throughput needed to handle the extra traffic will also need to grow accordingly. Currently, Bitcoin’s throughput is around 7 tx/s and Ethereum’s at 20 or so tx/s. Cardano’s throughput intends to compete with the likes of credit card institutions.

Network Bandwidth

RINA, is a technique Cardano uses that splits up networks into sub-networks to manage communication between nodes within networks and subnetworks.

Cardano has three types of nodes:

  • Core – code nodes are slot leaders and only nodes that can create blocks
  • Relay – relay transactions to and from edge and core nodes, and unable to create blocks
  • Edge – edge nodes create currency transactions that are sent to core nodes through relay nodes

Charles Hoskinson discusses Cardano Scalability in a Q&A and discusses running Epochs in parallel within a network to understand the blockchain network throughput.

Ouroboros divides ‘time’  Epochs, each Epoch has a number of slots. A ‘slot’ is a period of time when a block is created. The slot leaders are in charge of verifying (mining) transactions on the blockchain.

Cardano also implements a form of parallel computing by running these Epochs in tandem.

Data Scaling

Cardano’s “not everyone needs data” philosophy is part of their strategy in reducing the number of full nodes carrying an entire copy of the Cardano blockchain.

To do this Cardano’s team uses a number of clever techniques to increase efficiencies with data manipulation.

Methods Cardano uses to reduce user data

  • Pruning
  • Subscriptions
  • Compression
  • Partitioning
  • Sidechains
  • Sharding

Image Source: “Flickr”

Ledger Nano S - The secure hardware wallet