Cardano Prepares to Enter the Voltaire Era
A statue of the French philosopher François-Marie Arouet, more commonly known as Voltaire
Executive Summary: This blog post discusses Cardano, a blockchain platform created by Charles Hoskinson, and its upcoming transition to the Voltaire era, which marks a major step forward for the platform. Cardano primarily differs from other cryptocurrencies in its approach to governance, its use of a proof-of-stake consensus algorithm, and its focus on formal methods and peer-reviewed research. The Voltaire era will introduce a decentralized decision-making process, a funding mechanism for proposals, and a formal governance system for the Cardano platform. This development is significant for both Cardano and the entire crypto community, as it could lead to a more decentralized and democratic future for the industry.
Created in 2015 by Charles Hoskinson, a co-founder of Ethereum, Cardano is an innovative blockchain platform that launched publicly in 2017. Cardano has transitioned through four distinct eras thus far, with each named after a famous poet (or in one case, computer scientist): the Byron, Shelley, Goguen, and Basho eras. The next and perhaps final stage of the project, the Voltaire era, is imminent and marks a major step forward for the platform.
Cardano differs from other cryptocurrencies in that Cardano has always pursued a unique approach to governance, which allows for a more decentralized, democratic, and transparent decision-making process for the platform. This is largely achieved through the use of the Cardano Governance model, which allows ADA holders to actively participate in shaping the direction of the project. Cardano also uses an energy-efficient and highly secure proof-of-stake consensus algorithm called Ouroboros; this runs in contrast to proof-of-work algorithms used by other cryptocurrencies like Bitcoin, which require significant amounts of energy to operate. In addition, Cardano's focus on formal methods and peer-reviewed research sets it apart from other cryptocurrencies, as its focus on academic rigor ensures that the platform is built on a solid foundation and that its technology is thoroughly vetted before being implemented.
Past and Current Eras
Beginning in 2017, the Byron era, named for the English romantic poet Lord Byron, focused on laying the foundation for Cardano. During this period, the platform's infrastructure was developed and Ouroboros was created. The Byron era also introduced the Cardano Settlement Layer (CSL), which allowed for the creation and transfer of ADA tokens, the platform's native cryptocurrency.
The Shelley Era, after the English poet Percy Bysshe Shelley, known for his revolutionary spirit, began in July 2020. This era largely focused on decentralization and introduced the Cardano Incentivized Testnet (ITN), where users were able to earn rewards by staking their ADA. The Shelley era also introduced the Cardano Governance model, which allowed ADA holders to begin participating in aspects of the platform’s decision-making process and future direction.
Just a few months later, in December 2020, Cardano moved into the Goguen era, in honor of Joseph Goguen, a computer scientist who made significant contributions to the field of formal methods. This era shifted to emphasize smart contract functionality, which allows developers to build decentralized applications (dApps) on the platform. Coinciding with the start of a larger crypto bull run, the Goguen era brought significant growth to the Cardano ecosystem and made it a leading player in the blockchain space.
Cardano still currently sits in the Basho era, after Matsuo Basho, the renowned Japanese poet who popularized the haiku form. Since 2022, this era has aimed to improve the platform’s scalability, interoperability, and sustainability. Perhaps most notably, the Basho era has focused on (and is still in the process of) introducing sidechains that enable seamless communication between different blockchains. This will allow developers to build dApps on other networks and integrate them into the Cardano ecosystem. In addition, the Basho era has ushered in the launch of Cardano Lands, the first DeFi NFT platform on the Cardano blockchain. The Basho era has also further enhanced Cardano's larger governance model by laying the foundation for a treasury system that will allocate funds to community-driven projects and research in what will soon enough become the Voltaire era.
New Era
The Voltaire era, the forthcoming and perhaps final phase of Cardano's development, could prove its most important yet. Named after the French philosopher Voltaire, this era will focus almost entirely on governance—more specifically the platform’s sustainable self-governance moving forward. The Voltaire era will develop and employ an even more decentralized decision-making process, allowing the community to vote on proposals and determine the overall direction of the platform.
In October 2022, Charles Hoskinson tweeted the following regarding the Voltaire era: “The Age of Voltaire will soon be upon us as an ecosystem. It's going to unlock the power of the millions of Cardano users and builders. It will also, once again, show the rest of the industry how to do decentralized governance just like we did with Staking.”
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The Voltaire era will see its implementation in three distinct steps: the Voltaire Foundation, the Voltaire Treasury, and the Voltaire Governance. The first step, the Voltaire Foundation, introduces a voting mechanism for proposals that will be implemented by the Cardano Improvement Proposals (CIPs) process. This allows the community to vote on proposals for improving the platform, such as new features or changes to existing ones.
In the next step, the Voltaire Treasury will add a funding mechanism for proposals that are accepted by the community. This will allow projects to receive funding for their development, in a way similar to how projects on the Ethereum platform receive funding through the Ethereum Foundation. The Voltaire Treasury will be funded by a portion of the transaction fees generated by the platform, ensuring that it is self-sustaining.
The final step, the Voltaire Governance, will introduce a formal governance system for the Cardano platform. This will allow the community to vote on more significant proposals, such as changes to the consensus mechanism or modifications to the platform's governance model. The Voltaire Governance will also introduce a reputation system, allowing users who contribute to the platform to gain reputation points, which will afford them more voting power in the governance process.
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(Self-)Governance
So, when will these steps actually begin to occur? The short answer: they’ve already begun to occur and will continue to unfold over the course of the coming year. The Cardano team has stated that the Voltaire Foundation is already live on the Cardano mainnet, and that the community is currently able to vote on proposals through the CIPs process. The Voltaire Treasury is expected to launch later this year, with the Voltaire Governance following soon after.
The transition to the Voltaire era represents a important step forward for the Cardano community, as it will introduce a formal governance system that will enable the community itself to have a much greater say in the direction of the project moving forward. This marks a crucial aspect of any blockchain platform, as decentralization and community involvement are fundamental principles of the technology.
In the end, the move to the Voltaire era will likely carry significant implications not only for the Cardano platform but for perhaps the entire crypto community. Cardano’s innovative governance model will continue to provide a potential example for other blockchain platforms to follow, and could even help contribute to a more decentralized and democratic future for the entire industry. So keep an eye on Cardano in the Voltaire era, as it could help shape the future of blockchain as we know it.
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Conclusion: Cardano is a blockchain platform founded in 2015 with a unique approach to governance and a focus on academic rigor. Its proof-of-stake algorithm is energy-efficient and highly secure, unlike proof-of-work algorithms used by other cryptocurrencies. Cardano has gone through three eras so far, with the next one, the Voltaire era, focusing on decentralized decision-making through a formal governance system. The transition to the Voltaire era marks a significant step forward for the platform, potentially setting a precedent for other blockchain platforms. The Cardano team has already introduced the Voltaire Foundation, with the Voltaire Treasury and Voltaire Governance expected to launch later this year. Cardano's focus on decentralization and community involvement could lead to a more democratic future for the entire industry. As always, feel free to share your thoughts on Cardano's transition to the Voltaire era and other trending cryptotopics in the comments section!
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