Ouroboros Consensus Protocol: First POS Protocol

Ouroboros consensus protocol is the first provably secure Proof of Stake (POS) consensus protocol.

Ouroboros ensures the highest security and integrity when deployed over blockchain platforms.

This Proof of Stake consensus protocol consumes less energy and carries out blockchain operations faster than other protocols.

Ouroboros combines unique technology with mathematically verified mechanisms to create new blocks.

Ouroboros is energy efficient, provably secure, allows chain continuity, and is highly scalable.

Ouroboros is expected to serve as the most viable alternative to the Proof of work protocol as it consumes lesser energy.

The concept of infinity is central to the mechanisms of Ouroboros.

The infinity mechanism allows blockchain networks to grow sustainably and ethically without boundaries.

Ouroborous deploys stakeholders as nodes, stake pools, and stake delegation for its blockchain operations.

Ouroboros is the first provably secure proof of stake (POS) blockchain protocol.

Ouroboros deploys cryptography, combinatorics, and mathematical game theory to ensure the security and integrity of the POS protocol.

The development of Ouroboros is to replace the Proof of Work (Pow) that is energy-intensive. Most first-generation blockchain platforms use the Proof of Work protocol.

Ouroboros is a new mechanism that can be deployed across several blockchain platforms. To understand how it works, you should check out the next chapter in this article.

How Does Ouroboros Consensus Protocol Work?

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The Ouroboros consensus protocol works synchronously; the proceedings occur in a cycle of slots corresponding to Block creation.

In the Ouroboros protocol, multiple slots are arranged into an epoch. At the beginning of the Epoch, the stakeholders on the blockchain network will deploy multi-party computation to elect a random sequence of block producers for the available slot within the created Epoch.

The higher your stake or, the higher the amount of coin that you own will determine your chances of having your nodes being picked as the block producer.

Ouroboros is based on peer review research and combines unique technology with mathematically verified mechanisms.

To ensure the sustainability, scalability, reliability, and security of blockchain networks that rely on its consensus protocol, Ouroboros will combine behavioral psychology and economic philosophy.

The main idea behind the development of Ouroboros is to have a protocol with innovative security guarantees and minimal energy requirements.

Ouroboros is developed to facilitate and ensure the propagation of global and permissionless networks alongside a reduction in energy usage.

The concept of infinity takes center stage in the Ouroboros consensus protocol. It is expected that blockchain networks should be able to grow sustainably and ethically without boundaries, and Ouroboros makes this concept of Infinity a reality.

Cardano uses Ouroboros to run on permissioned and permissionless blockchain. Polka dot has also infused a part of Ouroboros.

Quite a several reasons make Ouroboros the first of its kind. They include;

Unique Features Of Ouroboros; First Of Its kind

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The following are some of the unique features of Ouroboros:

Provably Secure

Ouroboros is the first provably secured Proof of Stake (PoS) protocol. The security architecture of this consensus protocol is mathematically verifiable.

Ouroboros has a continuous security iteration that allows it to evolve through continuous and rigorous security analysis.

In Cardano, where this consensus protocol is deployed, there is the highest level of guarantee as long as 51% of the stake is held by honest participants.

Energy Efficient

The greatest challenge of blockchain technologies is excess energy usage. Mining activities, block creations, and transaction verifications consume more energy depending on the blockchain platform.

Ouroboros solves this most significant challenge in an unprecedented manner. Experts believe that Ouroboros is four million times energy-efficient compared to Bitcoin.

For instance, Cardano uses the Ouroboros consensus protocol, and with its low energy consumption, it can securely, sustainably, and comfortably scale millions of Bitcoin transactions.

Chain Continuity

Every transaction, agreement, consensus, and other blockchain activity using the Ouroboros protocol is part of an unbreakable chain.

Ouroborous sustains the continuity of every moment and continues to build the chain on the blockchain network. Every addition and information shared or verified becomes an immutable past.

Stake Pools And Delegation

Ouroboros is a proof of stake protocol. The stake delegation feature enables it to distribute network control and rights across the eligible stake pools.

These stake pools consist of nodes and participants with the required infrastructure to ensure an uninterrupted and reliable network connection.

For instance, those with the Cardano stake are called Ada holders; they can delegate their stake to another holder.

When such a holder has more stakes, the chance of selection as the slot leader increases.

The slot leader gets rewarded for adding a block to the chain, and they will share the reward with the stake pools.

Furthermore, when you are not online, you can delegate your stake to another shareholder within your stake pool to act on your behalf.

It is impractical to expect every stakeholder to be online at every time, so whenever you are unavailable, and you are elected as a slot leader, you can delegate your stake (power).

Reward Mechanism

The reward mechanism in Ouroboros is entirely different compared to other consensus protocols. Instead of rewards to block based on the number of blocks you create, rewards are based on Epoch.

The Network collects rewards in an epoch and distributes them among the stakeholders that make up the pool. The compensation that every stakeholder gets is proportional to the stake they contribute.

These rewards come from the transactional fees and funds from the Ada (Cardano) reserve. This is the first consensus protocol that has two sources of reward.

Conclusion

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Ouroboros is a consensus protocol that takes the decentralization feature of blockchain technology a notch higher. The ability to run permissioned and permissionless blockchains are unprecedented.

Being the first Provably secure Proof of Stake protocol, Ouroboros combines multiple mechanisms to ensure all blockchain networks that deploy its consensus protocol are as secure as possible.

Ouroboros offers several qualitative advantages compared to other blockchain-based protocols. It presents real-world practicality by reducing energy consumption and ensuring faster transactions.



Author: Valentine. A, Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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