The upcoming Cardano Improvement Proposal (CIP-1694) is expected to bring significant changes to the platform. The final version of CIP-1694 is scheduled to be released in July of this year.
Cardano’s founder, Charles Hoskinson, believes that the project’s decentralization will send a strong message to the cryptocurrency industry. In a recent update, he stated that ADA is more decentralized than any other cryptocurrency, highlighting its significant level of decentralization compared to its peers.
Additionally, Hoskinson highlighted the importance of the Cardano Improvement Proposal (CIP-1694) in the context of decentralization. This proposal outlines a framework for on-chain governance, which will play a crucial role in the future phase of the network called Voltaire. This framework is expected to bring significant changes to how decisions are made and governance is carried out within the Cardano ecosystem.
Banking on Decentralization
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In order to ensure that the Cardano community has a significant influence in shaping the operations of the ecosystem, the proposal enables users to submit a governance action. This action will undergo a review process by a Constitutional Committee comprising delegation representatives (DReps) and stake pool operators (SPOs). The ultimate goal is to empower the community to have a decisive role in the decision-making process within the Cardano network.
Additionally, it is expected that the final version of CIP-1594 will be released in July of this year. According to Hoskinson, Cardano’s gradual progress towards decentralization could potentially enable the project to meet the criteria set by regulatory frameworks in the cryptocurrency industry.
Furthermore, Hoskinson speculated that in the future, measures of decentralization will become significant in establishing regulatory standards. He believes that regulatory authorities may eventually view a highly decentralized cryptocurrency project as a protocol or commodity.
In January of this year, the Cardano network experienced a temporary interruption due to a brief issue that was swiftly resolved.
Recently, the company behind the Cardano blockchain, Input Output Global (IOG), released an update to its cryptographic standards. This update allows developers to use different types of multi-signature designs in creating secure and cost-effective decentralized applications (DApps).
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
