Cardano Unveils Ouroboros Peras, Promises to Redefine Transaction Settlement Horizons - Crypto Economy

TL;DR

• Input Output Global (IOG) has announced the creation of Ouroboros Peras, a key evolution for Cardano.
• Peras improves security by prioritizing the heaviest chain, reducing the risk of transaction reversal.
• ADA is also developing solutions like Leios to optimize bandwidth and increase network efficiency.

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Input Output Global (IOG), the technology company behind the Cardano blockchain, has unveiled a major breakthrough in the evolution of its protocol, announcing the creation of Ouroboros Peras.

This new version of the protocol aims to address a challenge in blockchain transactions: the settlement horizon, which refers to the point when the probability of a transaction being reversed becomes negligible. Ouroboros Peras represents an improvement over Ouroboros Praos, the current protocol, by introducing a new methodology for selecting the main chain of blocks in the network.

Ouroboros Peras is an extension of the Ouroboros Praos protocol that addresses the problem of transactions’ settlement horizon, that is, the point in time when the probability of a transaction being reverted becomes negligible. 🧵/1 pic.twitter.com/cAkeExpLsF

— Input Output (@InputOutputHK) October 14, 2024

The core focus of Peras is the implementation of stake-based voting, where stake pool operators (SPOs) implicitly vote to increase the weight of blocks that have the majority support of these operators. Unlike the traditional chain selection mechanism that prioritizes the longest chain, Ouroboros Peras chooses the heaviest chain, strengthening the system’s security by reducing the likelihood of transaction reversals.

This technological advancement is part of IOG’s efforts to accelerate the transition from theoretical research to practical implementation, using rapid prototyping methodologies. Ouroboros Peras is just one of the innovations designed to improve the efficiency of Cardano.

Cardano Implements Improvements Across Multiple Fields

As part of this expansion process, Cardano is also implementing additional scalability solutions, such as Hydra and Mithril. While Hydra allows for fast transaction processing on layer 2, neither Hydra nor Mithril directly address the performance of Cardano’s mainnet in terms of capacity and latency. Therefore, the Peras upgrade is considered a fundamental step to reduce transaction settlement times.

In addition to Peras, ADA is also developing another protocol, called Leios, which focuses on optimizing the network’s bandwidth usage. This approach will allow more transactions to be processed efficiently, improving the overall user experience and increasing the blockchain’s performance.

Together, these technological improvements are designed to enhance the capacity of the Cardano network, both in terms of recorded transactions and settlement times, consolidating its position as one of the leading platforms in the blockchain industry