Cardano is a prominent blockchain platform known for being one of the earliest adopters of the proof-of-stake consensus mechanism. Although its ranking has dropped out of the top 10, it continues to be recognized for its decentralized nature. According to data from Pooltool, as of October 16, Cardano boasts over 2,800 stake pools, which serve as validators.
To uphold this decentralization, stake pool operators need to operate nodes with an uptime exceeding 99% to avoid penalties. Many achieve this by leveraging centralized cloud service providers like Google and Amazon.
Proposal to Decentralize Computing Resources via Physical Infrastructure
A new proposal seeks to eliminate reliance on centralized services, allowing stake pool operators to utilize home-based solutions. This aims to support the network’s development without additional financial burden on operators.
While centralized cloud platforms have significantly contributed to Cardano’s scalability, there are worries that their dominance could compromise the network’s security and governance. This notion contradicts the fundamental principle of blockchain, which is to distribute authority away from centralized entities to individuals, fostering a stronger network.
The proposal suggests reallocating funds currently spent on centralized services to individual networks, enhancing both resilience and sustainability. It includes plans to utilize Cardano Home Portal devices exclusively designed for AI computation, developed alongside HyperAppliance. When activated, these devices will redirect funds that would typically go to centralized providers directly to the owner’s ADA wallet.
Cardano’s Shift to Voltaire: A Move Toward Decentralized Governance
This initiative follows Cardano’s successful transition from the Goguen era to Voltaire. With this update, ADA holders now have the ability to vote and influence the blockchain’s future direction.
Decentralized governance marks a shift from relying on centralized federated representatives to a model powered by community-selected agents (DReps), thereby empowering ADA holders.
Despite a smooth transition to Voltaire, ADA continues to face challenges. The coin has seen a downturn since its peak of $0.80 in March 2024, dropping by 56% from its highest point this year. If the market fails to push above the current resistance level of $0.40, further declines could ensue.
