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								<p>In a livestream broadcast titled “Post-Quantum Cardano,” ADA founder Charles Hoskinson laid out a roadmap for making the blockchain quantum-resistant. His remarks come amid rapid developments in quantum computing hardware, including <a href="https://bitcoinist.com/bitcoin-quantum-computing-survive-microsoft" target="_blank">breakthroughs from Microsoft</a> and other tech heavyweights, as well as newly released US government standards for post-quantum cryptography.</p>
<p>Hoskinson opened the <a href="https://www.youtube.com/watch?v=nozlBDEzhZE" target="_blank">session</a> by highlighting the accelerating pace of progress in quantum computing: “The quantum computer world is heating up quite a bit, and a lot of magical amazing things are happening… It is my belief that in 5–10 years we’ll probably make substantial progress to the point where we really have to start thinking about updating and modernizing the cryptography.”</p>
<p>He also pointed to the recent actions by the US National Institute of Standards and Technology (NIST), which, in August 2024, finalized several post-quantum encryption standards to begin guiding the industry forward: “Turns out it’s not just my belief—it’s the United States government’s belief as well […] The National Institute of Standards and Technology (NIST) proactively got together […] and they created some standards.”</p>
<p>NIST has published new Federal Information Processing Standards (FIPS) numbered 203, 204, 205, and 206, which define algorithms intended to resist quantum attacks. Hoskinson noted the significance of this for the global cryptographic community, as these standards will likely spur hardware manufacturers to incorporate specialized circuitry that can handle post-quantum algorithms more efficiently.</p>
<p>Currently, Cardano’s security model—like most major blockchains—relies heavily on elliptic curve cryptography. Hoskinson warned that Shor’s algorithm, which can run on large-scale quantum computers, poses a theoretical threat to such elliptic curve systems:</p>
<p>“The problem is we have this thing called Shor’s algorithm […] if you have a quantum computer, it can kill the security of that [elliptic curve] […] So what a lot of people in the blockchain space do is they say, ‘Oh well, we got a post-quantum signature scheme, so we’re good.’ But that couldn’t be further from the truth.”</p>
<p>He stressed that security in a post-quantum world extends beyond just swapping one signature scheme for another. Instead, blockchains must define comprehensive security models that consider what kind of adversaries they will face—an adversary with a quantum computer also has capabilities like side-channel attacks, hardware infiltration, or even “offline” brute force attempts against older, stored data.</p>
<h2>The Three-Step Plan For Cardano</h2>
<p>Hoskinson laid out a clear, three-phase approach for transitioning Cardano into a fully quantum-resistant system over the coming years.</p>
<p><strong>1. Develop A Quantum-Secure Model</strong></p>
<p>Cardano’s foundational cryptographic protocols must be audited against a “canonical quantum adversary.” This means systematically reviewing every algorithm for potential vulnerabilities once a capable quantum computer emerges.</p>
<p>“First, we have to develop a Quantum secure model for Cardano, end to end, so we would audit all the algorithms Cardano is using and ask which ones are vulnerable […] That in itself is an interesting question, because there are various opinions in the cryptographic community about what we should assume a quantum adversary can do,” Hoskinson said.</p>
<p><strong>2. Separate Cardano Into Two Chains</strong></p>
<p>Hoskinson next proposed creating a separate, post-quantum proof chain—a “meta” layer that can serve as an immutable checkpoint system for Cardano’s main chain. “You want to separate Cardano into two pieces: there’s Cardano [main chain] […] then we have a proof chain […] basically it runs as an audit log of history so you have an unforgeable system with signatures related to the original history. Over time, this can become a programmable proof chain.”</p>
<p>He pointed to <a href="https://bitcoinist.com/cardano-publishes-mithril-2-paper/" target="_blank">Mithril</a>—Cardano’s existing technology for generating compact certificates of state—as a potential starting point. Updating Mithril with a post-quantum signature scheme would create a secure companion to the classical elliptic curve-based main chain without immediately disrupting its performance.</p>
<p>Hoskinson also mentioned new innovations like lattice fold plus—a compact “folding scheme” from researchers Dan Boneh and Binyu Chen—that could offer powerful cryptographic proof tools for this future proof chain.</p>
<p><strong>3. Full Integration</strong></p>
<p>Finally, once the new proof chain matures and post-quantum schemes become more efficient (and gain hardware support), Cardano can merge these elements into the main chain. “Then the third phase is eventual integration […] as the PQSS schemes get more advanced plus we develop a post-quantum VRF […] we can put that into the chain and merge the meta chain and the main chain together.”</p>
<p>This last phase would require substantial redesign of Cardano’s core protocols, possibly reconsidering the <a href="https://bitcoinist.com/cardano-founder-key-updates-rare-evo-2024/" target="_blank">extended UTXO model</a> and incorporating new authenticated data structures or ledger architectures.</p>
<p>Hoskinson cautioned that post-quantum algorithms are typically 5–10 times slower and yield larger signatures than their classical elliptic curve counterparts. However, he expressed optimism that hardware manufacturers—prompted by NIST’s finalized standards—will incorporate specialized circuitry to speed up these new cryptographic techniques.</p>
<p>“We had to wait for NIST to say, ‘Yo dawg, we have standards now,’ […] because now that they’re here, hardware manufacturers will start building custom capabilities to speed [post-quantum signature schemes] up,” Hoskinson remarked.</p>
<p>He also clarified that no algorithm remains secure forever in the face of continuous advances in computing. This dynamic “cat and mouse” reality is common in cryptography: “Quantum computers are just another bomb, and the Enigma machine is the classical crypto […] It’s an eternal journey and they’re never going to stop.”</p>
<p>According to Hoskinson, the timeframe for Cardano’s transition will likely span several years:</p>
<ul>
<li>2025–2026: Establish a formal research agenda and define Cardano’s quantum security model.</li>
<li>Mid-Term (2–3 years): Build out a post-quantum proof chain (e.g., via Mithril) to audit and checkpoint the main chain.</li>
<li>Long-Term (3+ years): Merge the two chains, adopt post-quantum VRFs and signature schemes throughout, and possibly revamp the ledger model.</li>
</ul>
<p>Concluding his remarks, Hoskinson emphasized the need for collaboration both within and beyond the Cardano ecosystem. He expects discussions to take place at Intersect (the Cardano governance entity), the Technical Steering Committee (TSC), and with leading cryptographers at institutions like Stanford, Carnegie Mellon, and the University of Edinburgh.</p>
<p>“Cardano is not caught with its pants down […] We have some of the best cryptographers in the world working at IO […] It’s a fundamental thing, and every protocol has to be systematically checked,” the Cardano founder concluded.</p>
<p>At press time, ADA traded at $0.797.</p>
<figure><img src="https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?resize=1024%2C473" alt="Cardano price" srcset="https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=3628 3628w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=1140 1140w, https://bitcoinist.com/wp-content/uploads/2025/02/ADAUSDT_2025-02-21_09-02-14.png?w=3000 3000w" /><figcaption>ADA remains below the 0.236 Fib level, 1-week chart | Source: <a href="https://www.tradingview.com/x/x800x3p7/" target="_blank">ADAUSDT on TradingView.com</a></figcaption></figure>
<p>Featured image from YouTube, chart from TradingView.com</p>
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Bitcoinist

Hoskinson Charts Cardano’s Path To Quantum Resistance

<div><div><div><p><a target="_blank" href="https://snowfallprotocol.io/">Snowfall Protocol (SNW)</a> has infused positive sentiments into the market with its presale phase growth. Notably, Snowfall Protocol (SNW) <strong>has grown by 3700%</strong> in its presale phase, which is set to end on February 3. Meanwhile, projects like Cardano (ADA) and Dogecoin (DOGE) have also registered some gains with the help of external factors. Let’s dwell deeper into these cryptocurrencies and see which one is a better investment option.<a target="_blank" href="http://snowfallprotocol.io/"></a></p><h2><a>Tesla Accepts Only Dogecoin (DOGE)</a></h2><p>Elon Musk’s Tesla has come in full support of Dogecoin (DOGE). Recently, Tesla openly stated that it would not accept any digital assets other than Dogecoin (DOGE). It asked its probable buyers to make their purchases in only Dogecoin (DOGE). Tesla has stopped accepting Bitcoin or other cryptocurrencies since May 2021. Elon Musk has continuously lent his support to Dogecoin (DOGE). Earlier, he had announced that Tesla and SpaceX merch could be purchased with Dogecoin (DOGE). Such open support from Tesla has pushed the growth rate of Dogecoin (DOGE) in an upward direction. The price of Dogecoin (DOGE) has increased by 26.74% in the last month. On the daily price chart, Dogecoin (DOGE) has risen by 2%. Currently, Dogecoin (DOGE) is being traded at $0.0901, which is 88% below its all-time high of $0.74.</p><h2><a>Cardano (ADA) Unveils Its Electric Auto Rickshaw Project</a></h2><p>Cardano (ADA) recently unveiled its first automotive project called eTukTuk. Cardano (ADA) revealed that it aims to introduce a more reliable and sustainable electric auto rickshaw. Besides, Cardano (ADA) stated that it wants to create a charging network in Sri Lanka. Since the project will be hosted on the Cardano (ADA) network, users need to have its native token to use the services. All these announcements have made a positive impact on Cardano (ADA). As a result, the price of Cardano (ADA) has seen a significant rise in the past few weeks. The price of Cardano (ADA) has increased by 58% in the last 30 days, and 3% on the weekly chart. Besides, Cardano (ADA) has risen by 2% on the daily chart. The current trading price of Cardano (ADA) is $0.39.</p><h2><a>Snowfall Protocol (SNW) Flies High During Presale</a></h2><p>In just a few weeks of its presale launch, Snowfall Protocol (SNW) has become the best investment option on the market. Given its unique business idea, Snowfall Protocol (SNW) has garnered firm support from crypto enthusiasts. Snowfall Protocol (SNW) removes technical barriers present between different blockchain networks, to facilitate cross-chain communication. Snowfall Protocol (SNW) is the world’s<strong> first platform related to the cross-chain transfers of fungible tokens and non-fungible tokens (NFTs).</strong></p><div><figure><a target="_blank" href="https://presale.snowfallprotocol.io/"><img src="https://i2.wp.com/www.thecoinrepublic.com/wp-content/uploads/2023/02/image.png" alt srcset="https://i2.wp.com/www.thecoinrepublic.com/wp-content/uploads/2023/02/image.png 491w, https://www.thecoinrepublic.com/wp-content/uploads/2023/02/image-300x127.png 300w" /></a></figure></div><p><a target="_blank" href="https://snowfallprotocol.io/">Snowfall Protocol (SNW)</a> utilizes a<strong> wrapping and swap protocol</strong> for the chain swaps of non-fungible tokens (NFTs), and a <strong>canonical token bridge</strong> for fungible tokens. The platform guarantees that the cross-chain transactions always stay accurate. The platform also allows users to<strong> swap their digital assets between the popular EVM and non-EVM networks</strong>. Snowfall Protocol (SNW) allows users to exchange tokens over any blockchain technology.</p><p>Snowfall Protocol (SNW) has usability in Defi, stablecoins, infrastructure cryptocurrencies, and NFTs sectors.</p><p>Since the platform has so many use cases, the presale ofSnowfall Protocol (SNW) has become a huge success. Snowfall Protocol (SNW) has <strong>grown by 3700%</strong> during the presale phase. The current trading price of Snowfall Protocol (SNW) is<strong> $0.20</strong>. However, Snowfall Protocol (SNW) will be launched on exchange at a price of <strong>$0.22 on February 3</strong>.<a target="_blank" href="http://snowfallprotocol.io/"></a></p><p>get in while you can and invest in Snowfall Protocol (SNW) today!!!</p><p>Presale:<a target="_blank" href="https://presale.snowfallprotocol.io/"> https://presale.snowfallprotocol.io</a></p><p>Website:<a target="_blank" href="https://snowfallprotocol.io/"> https://snowfallprotocol.io</a></p><p>Telegram:<a target="_blank" href="https://t.me/snowfallcoin"> https://t.me/snowfallcoin</a></p><p>Twitter:<a target="_blank" href="https://twitter.com/snowfallcoin"> https://twitter.com/snowfallcoin</a></p><div><figure><a target="_blank" href="https://presale.snowfallprotocol.io/"><img src="https://i0.wp.com/www.thecoinrepublic.com/wp-content/uploads/2023/02/image-1.png" alt srcset="https://i0.wp.com/www.thecoinrepublic.com/wp-content/uploads/2023/02/image-1.png 491w, https://www.thecoinrepublic.com/wp-content/uploads/2023/02/image-1-300x127.png 300w" /></a></figure></div><p><strong>Disclaimer</strong>: Any information written in this press release or sponsored post does not constitute investment advice. Thecoinrepublic.com does not, and will not endorse any information on any company or individual on this page. Readers are encouraged to make their own research and make any actions based on their own findings and not from any content written in this press release or sponsored post. Thecoinrepublic.com is and will not be responsible for any damage or loss caused directly or indirectly by the use of any content, product, or service mentioned in this press release or sponsored post.</p><div><section><p><a target="_blank" href="https://www.thecoinrepublic.com/author/guest-author/" title="Guest Author"> <img src="https://i1.wp.com/www.thecoinrepublic.com/wp-content/uploads/2022/02/TCR-logo-150x150-1.jpeg" /></a></p><p>For publishing articles on our website get in touch with us over email or one of the accounts mentioned below.</p></section><section><p><a target="_blank" href="https://www.thecoinrepublic.com/author/guest-author/" title="Guest Author"><img src="https://i1.wp.com/www.thecoinrepublic.com/wp-content/uploads/2022/02/TCR-logo-150x150-1.jpeg" /></a></p><div><p>Latest posts by Guest Author <span>(<a target="_blank" href="https://www.thecoinrepublic.com/author/guest-author/">see all</a>)</span></p></div></section></div></div><p>Source: https://www.thecoinrepublic.com/2023/02/01/cardano-announces-etuktuk-ev-tesla-bats-for-dogecoin-again-and-snowfall-protocols-price-skyrockets-by-3700/</p></div><h2>Post navigation</h2></div>

BitcoinEthereumNews

Cardano Announces eTukTuk EV, Tesla Bats for Dogecoin Again, And Snowfall Protocol’s Price Skyrockets By 3700% - BitcoinEthereumNews.com

<div><div><div><p>Cryptocurrencies are gaining increasing attention due to their potential to revolutionise the way transactions are conducted. </p><p><a target="_blank" href="http://snowfallprotocol.io/"><a target="_blank" href="https://snowfallprotocol.io/">Snowfall Protocol</a> (SNW) is a new cryptocurrency that boasts superior features over other popular cryptocurrencies like Cardano (ADA) and Solana (SOL). In this article, we are talking about what makes Snowfall Protocol (SNW) a better choice than Cardano (ADA) and Solana (SOL).</a></p><h2 id="h-solana-sol-declines-after-major-hack">Solana (SOL) declines after major hack</h2><p>Solana (SOL) has experienced a serious hack on one of its largest DeFi protocols, adding to the difficulties the network has had in recovering from the debilitating harm caused by the shocking collapse of one of its most important backers, FTX. On Friday, the Solana DeFi protocol, Raydium, revealed that a hacker had gained “owner authority” and was draining the company’s liquidity reserves. The hacker stole $1.6 million in Solana (SOL).</p><p>Consequently, Solana’s (SOL) cost has dropped by 7.72% over the past week, and by over 18% this month. This is not the first time Solana (SOL) was exposed to a hack this year. The consistent security breaches could mean there isn’t much security backing Solana (SOL). Therefore, investors are flooded with doubt whether they should continue holding Solana (SOL) tokens.</p><h2 id="h-paxful-founder-rejects-cardano-ada-after-ethereum-eth">Paxful founder rejects Cardano (ADA) after Ethereum (ETH)</h2><p>In a recent Twitter post, Paxful founder and Bitcoin peer-to-peer marketplace creator, Ray Youssef, stated that he would not be supporting Cardano (ADA), along with two other prominent tokens, on his platform. This comes after Youssef announced the delisting of Ethereum (ETH) from the platform.</p><p>According to analysts, the price of Cardano (ADA) may be heading for a precipitous drop after this announcement, supported by the overall market outlook for the token. As 2023 approaches, investors in the cryptocurrency industry are still trying to recover from a difficult year in which most of its assets, notably Cardano (ADA), incurred substantial losses.</p><p>Cardano (ADA) is in a consistent bearish trend, as shown by the daily chart. Moreover, Cardano (ADA) has been trading in a downward channel since August.</p><p>Experts predict that by 2023, the price of Cardano (ADA) could have dropped by another 60%. At the time of writing, Cardano (ADA) was trading at $0.31.</p><h2 id="h-snowfall-protocol-snw-rises-over-250-in-one-month">Snowfall Protocol (SNW) rises over 250% in one month</h2><p>Due to the widespread demand for a more functional and streamlined cryptocurrency market, Snowfall Protocol (SNW) was introduced. The goal of Snowfall Protocol (SNW) is to establish a straightforward method of cross-chain communication that is highly efficient and secure. Snowfall Protocol (SNW) uses a canonical bridging concept to facilitate exchanges with both EVM-compatible and non-EVM-compatible blockchains. </p><p><a target="_blank" href="http://snowfallprotocol.io/">The launch of Snowfall Protocol (SNW) on January 3, 2023, should be at the top of the priority list for any cryptocurrency investor seeking a high rate of return on their initial investment. The presale and stage 2 of Snowfall Protocol’s pre-launch campaigns were both resounding successes for SNW.</a></p><p>Snowfall Protocol (SNW) token is currently in the last phase of presale and is trading at $0.14, up from $0.075 in the last round. Many industry experts predict that Snowfall Protocol (SNW) will become one of the tokens that helps most people earn huge ROIs in 2023.</p><figure><p><strong>Disclaimer: </strong>This is a press release post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.</p></figure></div><p>Source: https://coinpedia.org/press-release/solana-exchange-hacked-cardano-rejected-by-paxful-founder-while-snowfall-protocol-grows/</p></div><h2>Post navigation</h2></div>

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Solana Defi Exchange Hacked, Cardano Rejected By Paxful Founder While Snowfall Protocol Grows 250% - BitcoinEthereumNews.com

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<p>Cardano uses PoS consensus, which at the time of writing is capable of processing 300 simple transactions per second. That&rsquo;s almost 50 times more than the PoW consensus that Bitcoin uses. However, for the global financial system, this is still insufficient. The IOG team is working on a new version of PoS which they have named Ouroboros Leios.</p>
<h2>The Blockchain Trilemma</h2>
<p>The developer team of any blockchain network balance three key characteristics, which are security, decentralization, and scalability. The blockchain trilemma refers to a widely held belief that decentralized networks can only provide two of three benefits at any given time. Security is an unconditional feature that cannot be compromised. Teams balance mainly between decentralization and scalability. However, preferring scalability over decentralization is not the best solution, as decentralization is a key feature of the blockchain industry. Moreover, as decentralization decreases, the Nakamoto coefficient decreases as well so does security.</p>
<p>Creating a blockchain network that achieves high scalability while not sacrificing decentralization and security is still a technological challenge for the blockchain industry. Cardano is currently one of the most decentralized networks, with over a thousand pool operators producing blocks. It is imperative that Cardano maintains its current decentralization and does not close the door to further growth. However, increasing scalability is also essential to the mission Cardano is trying to fulfill.</p>
<p>Ouroboros Leios is a major extension to the current PoS consensus that will significantly increase scalability and maintain the current level of decentralization. Let&rsquo;s take a look at the details known so far.</p>
<h2>Throughput</h2>
<p>Blockchain networks use blocks as a collection of transactions and scripts over which a network consensus occurs. From a network perspective, it is not efficient to make decisions at a global level for each individual transaction. It is more efficient to take multiple transactions simultaneously and make a decision (consensus) over the entire collection.</p>
<p>A block is a basic unit used to transition to a new state at the ledger level. If the majority of the network considers the proposed block valid, the new block will be stored in the blockchain forever and will become the starting point for the next state transition.</p>
<p>Two parameters affect the throughput of blockchain networks. They are block size and block time.</p>
<p>Block size defines the maximum size of a block, which affects the number of transactions and scripts that can fit into it. If the block size is 88 kB (90.112 B) and a simple transaction has the size, say 300 B, 300 transactions can fit in the block.</p>
<p>The block time defines the time interval between adding new blocks. Cardano has the block time set to 20 seconds. This means that in 1 minute Cardano can process 900 simple transactions. In 10 minutes, 9000 transactions, etc.</p>
<p>It may happen that if the number of users who want to use the network starts to grow, the network may not be able to insert all new transactions into a new block. Thus, some transactions must wait in the mem-pool for the next block.</p>
<p>For example, this would happen if 400 users wanted to send a simple transaction within 20 seconds, and this would repeat for an hour. 400 transactions are more than the 300 that Cardano can easily handle. Every 20 seconds, 100 transactions are left out of the new block, so they must remain in the mem-pool.</p>
<p>You can think of a mem-pool as a temporary repository of transactions on network nodes. When a block producer becomes a slot leader, i.e. gains the right to create a new block in a given slot, it takes the pre-validated transactions from the mem-pool and puts them into the block. It then propagates the block to the network. With each newly added block, the mem-pool space increases as transactions that are already in the blockchain can be taken out. However, new transactions are coming in all the time.</p>
<p>If the number of transactions is consistently higher than the number the network can handle, it is necessary to prevent the mem-pool from filling up beyond the required limit. The network is forced to reject new transactions. Users must wait longer for the settlement of transactions that are already in the mem-pool. Users who have failed to submit a transaction must try again. Both are user-unfriendly. Users expect that the settlement will be short and that the network will not have throughput problems.</p>
<p>The mem-pool is capable of absorbing short-term peaks, but it does not make sense for it to be many times larger than the block size. If there were enough transactions in the mem-pool for, say, 100 blocks ahead, it would mean that newly submitted transactions would not get into the block for a relatively long time. Ideally, the mem-pool should be as small as possible and the network should scale sufficiently so that transactions don&rsquo;t stay in the mem-pool just because they don&rsquo;t fit in a block.</p>
<p>The decentralized network is able to propagate transactions relatively quickly and is theoretically limited only by Internet bandwidth. The Internet has a higher throughput than blockchain networks as blockchains are limited by block size and block time. In other words, blockchain networks are currently unable to use the throughput of the Internet when it comes to the production of blocks. What holds blockchain networks back is a slow consensus which is furthermore limited by the size of the data in a given interval. While transactions could flow through the blockchain network relatively quickly, the only result is that the mem-pool would be filled.</p>
<p>There are seemingly simple solutions such as increasing the block size or decreasing the block time. Both lead to higher throughput as more transactions would fit in a block and a new block would be produced more frequently. Unfortunately, changing these parameters might have a negative impact on security and decentralization. For example, the larger the block, the longer it takes to propagate in the Peer-to-Peer network (increasing delay). The shorter the block size, the greater the risk of forks being created, as the block producer may not receive the last produced block in time (and use the previous one).</p>
<p>As the number of nodes in the network grows, the number of hops through which data must pass in the network can grow. As each node validates the data before sending it (to avoid sending non-valid data over the network), the distribution of data slows down.</p>
<h2>How to increase throughput</h2>
<p>As we said, currently, blockchain networks do not use most of the communication bandwidth. Most of the time, nodes are just waiting. Respectively, they receive, prevalidate and further distribute new transactions and scripts. Verifying new incoming transactions is not a computationally demanding task for nodes. They only have a little bit more work to do when they receive a new block or are tasked with producing a new block.</p>
<p>If the block time is set to 20 seconds, we can say that the node does minimal work for 19 seconds and validates or creates a new block once every 20 seconds. In terms of network bandwidth usage, it&rsquo;s similar. There are lots of small transactions being sent across the network all the time, but once every 20 seconds a relatively large block needs to be distributed, which takes a lot longer than with transactions.</p>
<p>To increase scalability, it is necessary to use the computational power of nodes and fully employ them. It does not make sense to use the computational power and the bandwidth of the network only when a new block is to be produced. Simply put, the longer the block time, the less the computing power and the bandwidth of the network are used.</p>
<p>Do not confuse the PoW task, which is mainly about drawing the next block producer and securing against history overwriting, with transaction validation. In the context of Bitcoin scalability, the network also basically sits idle for 10 minutes while miners try to resolve the computationally intensive cryptographic problem.</p>
<p>So, it is necessary to use the available resources. Validated transactions and scripts should be accepted and stored in the blockchain as soon as possible. In other words, it is necessary to get the validation results into the block as soon as possible, regardless of their quantity.</p>
<p>How to increase throughput while maintaining security and decentralization? There must be no fundamental change in the number of nodes in the network. The network must remain open so that a new node can join at any time.</p>
<p>The solution must be independent of the block size and block time parameters. It is necessary to utilize the whole throughput of the communication link to be able to quickly process as many new transactions and scripts as possible. Nodes can make more use of their computing power while waiting for a new block to be created. The IOG team found a solution.</p>
<p>It is necessary to separate transaction validation and script execution from block production. Ouroboros Leios splits the tasks related to validation and block production into two groups of nodes. However, each node can perform both tasks.</p>
<h2>Input endorsers</h2>
<p>Cardano splits time into slots. The length of one slot is one second. The protocol is set up so that approximately every 20 seconds, one randomly selected node becomes the slot leader. The slot leader gets the right to insert transactions into a new block and publish it. Stake size affects the frequency with which a node can become a slot leader. The selected slot leader is also a block producer if it uses the right and produces a new block.</p>
<p>In the picture below you can see the time divided into slots. In slots 20 and 40 new slot leaders are drawn, these are the nodes marked 11 and 3. These nodes can produce a new block and publish it.</p>
<p><img src="https://img.cexplorer.io/i/d8270193355889d5f8b9fe7f1d5d5a4d.png" alt=""></p>
<p>There are entities in the network (stake pool operators) that are trusted by delegators and this can be exploited. In addition to block producers, there will be a second group called input endorsers. Thus, within a slot, it is possible to randomly select not only slot leaders but also one input endorser (theoretically multiple input endorsers).</p>
<p>The role of slot leaders is unchanged and they are tasked with producing a new block. Input endorsers are tasked with endorsing the input that should go into the block. We will talk about the content of the endorsed input later. Input endorsers can be thought of as a second layer that will preprocess transactions and scripts before they are inserted into the block by a randomly selected slot leader.</p>
<p>Input endorsers will be randomly selected by a mechanism similar to the way slot leaders are selected. The difference is that input endorsers can be selected in each individual slot (one input endorser per second) before the slot leader is selected (approximately every 20 seconds). Input prepared by an input endorser will be accepted by the slot leader only if it is cryptographically verified that the input endorser has obtained the right to prepare the input.</p>
<p>In between two blocks, multiple input endorsers will be randomly selected to prepare inputs. Once a slot leader is chosen, there will be multiple endorsed inputs that can be inserted into the block. Instead of the slot leader inserting selected transactions and scripts into the block, as it does now, it will insert references to endorsed inputs into the block.</p>
<p>Blocks and endorsed inputs are distributed independently in the network. Each block can contain 0 to N endorsed inputs.</p>
<p>In the picture below you can see the time divided into slots again. Approximately every 20 seconds a new slot leader is drawn. In addition, an input endorser is drawn in each slot and it is given the right to produce a new input. Thus, two draws take place in parallel at the same time.</p>
<p><img src="https://img.cexplorer.io/i/ba93b7be43c2f2c8f58e71c200fd2a24.png" alt=""></p>
<p>Input endorsing is only possible because Cardano uses the Extended-UTXO model. It is possible to validate transactions and scripts locally regardless of the surrounding environment (no global state). Transaction validation and script execution happen locally at the level of input endorsers, i.e. outside the main chain that remains under the control of slot leaders. The responsibility for searching for double-spend conflicts remains with the selected slot leaders. However, it becomes a lightweight process that needs only to rely on detecting and resolving conflicts in the UTXO graph.</p>
<p>The same transaction can be contained in multiple endorsed inputs. This can happen if the input endorser does not know what the previous inputs look like. In case a transaction is multiply present in the blockchain its first occurrence only will be its canonical position in the ledger.</p>
<p>In the picture below you can see how a new endorsed input is created every second. As soon as a new slot leader is drawn, there will be more endorsed inputs that are ready to be used. The slot leader performs its validation process and can insert all the selected inputs into the new block.</p>
<p><img src="https://img.cexplorer.io/i/76453e8e905c9498f47e27b01fbec6d6.png" alt=""></p>
<p>Let&rsquo;s see what happens from submitting the transaction to inserting it into the block.</p>
<p>When a node receives a new transaction it validates it. All valid transactions will be inserted into the mem-pool. If a node gets the right to create an endorsed input in a given slot, it will include the pre-validated transactions in the new input. A batch of transactions will be created. You can think of this as a new kind of block. Endorsed inputs (blocks) are distributed in the Peer-to-Peer network. In addition to the mem-pool for transactions, there will be a mem-pool for the endorsed inputs. Nodes will keep multiple endorsed inputs in the dedicated mem-pool in order to be ready for producing a new block in the case they would become a slot leader.</p>
<p>Nodes not only store endorsed inputs but locally prove their validity via Mithril certificates, which are cryptographic proofs of validity to groups of transactions.</p>
<p>Once a new slot leader is selected, it selects the endorsed inputs from the mem-pool and verifies that no double-spend has occurred. It then inserts the references of all selected endorsed inputs into the new block. The new block is then distributed to the network and validation by other nodes is performed in a similar way as it is done now. During the distribution of the new block, nodes can take out the used endorsed inputs from their mem-pools.</p>
<p>In the figure below you can see how a node receives new transactions and also new endorsed inputs from the Peer-to-Peer network. Both are stored in dedicated mem-pools. The node got lucky and was elected as slot leader, so it produced a new block.</p>
<p><img src="https://img.cexplorer.io/i/d7810331b98444f8f3ed4088bb1a981a.png" alt=""></p>
<p>Note that this concept delegates validation of transactions and script execution to all nodes and does not burden the node with this work at the time it is elected as slot leader. It allows using the computational power of nodes during the &ldquo;idle&rdquo; time when all nodes wait for a new slot leader.</p>
<p>Transactions and scripts are processed by the network essentially all the time so creating a new block is a relatively quick process. Because references to endorsed inputs are used, the block size can remain the same as it is today, even though the volume of data processed can be many times larger. In other words, each endorsed input can contain, say, 1000 transactions. Thus, the distribution of the block will not be slowed down due to size. At the same time, however, nodes have access to all necessary data that is referenced in the new block.</p>
<p>This concept can resemble L2 solutions like ZK Rollups and Optimistic Rollups, or other solutions like Lightning Network. However, the advantage is that there is no second network with its own infrastructure. Everything will be under the control of the current staking pool operators within the Cardano network. Users will not notice the change except for better performance. There is no need to use bridges or different addresses so the user experience will not be affected in a negative way.</p>
<h2>Conclusion</h2>
<p>At the time of writing, all fans are eagerly awaiting more details from the IOG teams. Probably the biggest question for us is where and how transactions and scripts will be stored, as the block will only reference the data. Because Cardano will scale much better, it will also generate more data that will need to be stored somewhere. The ideal solution would be through sharding so that nodes don&rsquo;t have to store all the data, but only part of it. Let&rsquo;s see how the IOG team solves this.</p>
<p>It is premature to claim that the blockchain trilemma is a solved problem. However, Ouroboros Leios will be a significant step forward as network throughput will not be limited by block size and block time parameters. It is unknown at this time how high the scalability of Cardano will be, however, it is more than likely that we will be moving up at least an order of magnitude. Previously, it was said that blockchain is a slow database. Ouroboros Leios invalidates this argument and may rewrite the history of network consensus.</p>
</div>


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