Understanding the Shelley Phase of Cardano
The Shelley phase of Cardano was introduced in July 2020 with the release of the Shelley code.
It represents a significant milestone in the development of Cardano’s blockchain.
Empowering ADA Holders
Cardano implements a proof-of-stake consensus mechanism, delegation, and incentives schemes during the Shelley phase.
Stake pool operators play a crucial role in the delegation process, as they run nodes on behalf of ADA holders and receive rewards for their services.
The release of the Shelley phase marked a significant step towards full decentralization, with network participants actively contributing to the maintenance and security of the Cardano blockchain.
With the launch of Shelley, Cardano users gained access to several new opportunities:
- Rewards: By staking ADA tokens, users can earn rewards in ADA. The more ADA staked, the higher the potential rewards.
- Efficient Transactions: Staking ADA can lead to cheaper and faster transactions on the Cardano blockchain.
- Stake Pooling: Users can pool their ADA with others to increase their chances of earning rewards and reduce risks.
- Real-time Monitoring: The Ouroboros Praos algorithm enables real-time reporting on block production and performance.
- Delegation: Users who prefer not to stake directly can delegate their ADA to other participants who will stake on their behalf.
Cardano’s roadmap comprises five eras:
Each era represents a specific development phase and introduces new features and functionalities to the Cardano blockchain.
- Byron (2017): The foundation era of Cardano, focusing on launching the mainnet and establishing the basic infrastructure.
- Shelley (2019): The era of decentralization, introducing proof-of-stake consensus, delegation, and incentives. The Shelley era aims to achieve complete decentralization of the network.
- Goguen (2020): The era dedicated to smart contracts and the development of Plutus, a high-assurance smart contract language. Goguen enables the creation of decentralized applications (DApps) on the Cardano blockchain.
Through these eras, Cardano continues to evolve and advance toward its vision of a secure, scalable, and decentralized blockchain platform.