Blockchain architecture and development company Input Output Hong Kong (IOHK) has introduced Ouroboros, what it says is a provably secure Proof-of-Stake protocol addressing global demand for more efficient blockchains that can handle additional transactions.
Ouroboros is a consensus algorithm designed to be a foundation for blockchains that dramatically improve user governance, system maintenance, transaction processing speeds and blockchain scalability.
“Bitcoin uses a Proof-of-Work algorithm that is extremely energy intensive, rewards only a small set of actors who are becoming increasingly more centralized, and can process few transactions compared to systems like Visa and PayPal,” cofounder and CEO Charles Hoskinson said. “It also takes miners – despite their state of the art equipment, access to electricity, and cooling – increasingly longer to verify bitcoin transactions as the number of traders and investors rises.”
Mr. Hoskinson said the aim was to develop an algorithm connecting stakeholders directly to the system consensus. That connection can include voting, consensus on upgrades, and decentralized project funding.