Liz Bancroft-Turner, the recent addition as a Project Manager at IOHK explained in her latest post about the Shelley project and its ambitious goal, how it’s broken down into manageable workstreams and outlines the key deliverables and timeline expected for the release. She spoke about the capabilities for Cardano [ADA].
“I joined the team recently to work on some exciting projects. My career has spanned over the last 15 years and I have worked in various industries including financial services and technology.”
What is Shelley?
It is the path to full decentralization for Cardano. To give some context, they are currently in the bottom phase which establishes the baseline for Cardano and allows users to trade and transfer ADA. So, Shelley is one of the development phases of Cardano and has focussed on ensuring that key elements are in place so that the technology grows into a fully decentralized and autonomous system.
The network is currently operating in a bootstrap mode for a period of time called the ‘bootstrap era.’ During this time, the stake is automatically delegated to a pool of trusted nodes that maintained the network and no block rewards will be assured nor transaction fees collected. The bootstrap error will lead to the reward error.
So to summarize, the primary goal of the Shelley release is to upgrade the protocol to operate in a decentralized fashion. So, as a result, Cardano will no longer be dependent on IOHK or any other bootstrap stakeholders to maintain the network.
They have a number of workstreams within the Shelley project. They consist of delegation incentives and networking.
Delegations are convenient because they don’t have to run the RO node and its good for the stability of the system because everybody running the node will not be too good. They expect some nodes will be offline unless operated professionally which not every user will do.
On a high level, the incentives mechanism is to incentivize stakeholders to follow the protocol and thereby guaranteeing secure and efficient operation who want to design an incentive scheme that ensures that in each person there is self-interest to pay in a new way that makes the overall system work in a stable and reliable way.
This includes having appropriate rewards for operating nodes, incentives to delegate stakes and mechanism to set transaction fees and more. Incentive schemes are very delicate and it is easy to accidentally create unintended outcomes. Hence, the incentive scheme is to be based on a sound foundation of mathematical game theory and economic theory.
In order for a system to work in a decentralized network, it is important and necessary to guarantee performance so they can assure that blocks can permeate the network within the slot given.
Further updates regarding the Shelley project and Cardano’s decentralization routine will be discussed soon. Supporters are waiting keenly so the whole new independent Cardano from a long time. Users are excited and some like below say,
“Solid blockchain project.”
“Cardano is game changer! Moon..”
“it will be interesting to see if you guys can get all of that work done, in the collaborative style you’re looking for, in that time…, just seems a lot is left unknown at this point from a design and implement perspective. Conceptualisation seems to be about as far as a lot of this has gotten.”
“Dear diary, ….” I will be sure to keep my blockchain diary updated!”