Cardano is certainly one of the biggest blockchains and among the many first to make use of the proof-of-stake consensus algorithm. While the network has been slipping away from the highest 10, it stays probably the most decentralized platforms. Pooltool data shows that Cardano has over 2,800 stake pools (or validators) when writing on October 16.
To take care of this level of decentralization, stake pool operators must run nodes and maintain a high uptime, over 99%, to avoid penalties. This is commonly achieved using centralized cloud service providers like Google, Amazon, and others.
Developer Proposes To Decentralize Computing Resource Using Physical Infrastructure
A proposal now goals to decentralize the physical computing infrastructure, ensuring that stake pool operators don’t spend money on centralized solutions but home-run options while helping the network grow.
Although nothing may be taken away from Google and other centralized cloud operators since their computational resources have helped Cardano scale and grow, there are concerns that their role in securing the platform could exert undue influence.
This approach also goes against what blockchain stands for decentralized systems diffuse power from centralized organizations to individuals, leading to a more robust and reliable ecosystem.
Accordingly, the proposer is forwarding an idea to maneuver money away from Amazon, Google, and other centralized cloud service providers that host most of those stake pools to individual networks for resilience and sustainability.
The proposal describes using Cardano Home Portal devices to decentralize computing resources. These gadgets are designed specifically for AI computation and can be developed with HyperAppliance. Once connected, they are going to reroute funds otherwise spent on centralized options to the owner’s ADA wallet.
Cardano Transits To Voltaire, Decentralizing Governance: Will ADA Rise?
This development comes after the transition from Goguen to Voltaire. After Chang, ADA users can now take part in voting, helping shape how the blockchain evolves.
With decentralized governance, the network shifts away from using centralized federated agents to a community-driven approach via decentralized representatives (DReps) that provides more power to ADA holders.
Although Cardano migrated to Voltaire with none hitches, ADA stays under pressure. The coin has been sliding after rallying to $0.80 in March 2024. It’s now down 56% from this 12 months’s high and risks plunging lower if bulls fail to interrupt above the present consolidation and resistance at $0.40.
Feature image from Canva, chart from TradingView