Cardano has been an incredibly challenging and fun project to work on involving many teams throughout the world with different skills and opinions on design, process and quality. Our core technology team consists of Well Typed, Serokell, Runtime Verification, Predictable Network Solutions and ATIX, with IOHK leading them. Then we have external auditors such as Grimm, RPI Sec and FP Complete ensuring quality and holding us accountable to delivering what we have promised. When dealing with a consortium, it’s important to be aligned not only on day to day affairs, but on the broader engineering philosophy of why and how things should be constructed, as well as the pace of development. I’d like to spend a few paragraphs exploring the principles that guide our roadmap.
First, we can only grow as fast as our community. At the moment, more than half of our community has never used a cryptocurrency before. This reality means that while it would be awesome to introduce complex features like stake pools, blockchain based voting and subscribable checkpoints, they would be underutilized and therefore ineffective until the community catches up. To this end, we’ve provisioned resources towards a help desk tour, a dedicated support channel and trying to interact with our community as much as possible as they grow. This is tremendously time consuming, but it really does force our software to become simpler and more useable.
This effort challenges design assumptions, such as what the capabilities of the average node in our system should be. Throughout the next few months, a large part of our focus will be on answering questions, debugging software, improving the user experience and community education. The output will be that more people use Daedalus comfortably and back up their Ada, are able to use exchanges according to best practices, and understand why Cardano is a special project. It also means our software will slowly become more bug free and compatible with different configurations.
Second, we believe firmly in the vision of Satoshi that these networks must be resilient and distributed. Resilience means we cannot optimize around a collection of trusted or usually reliable nodes to maintain the network. Distributed means that wherever possible, every node contributes to propagating the network and its DNA. This creates tremendous design challenges. One is at the mercy of the weakest links when replication is the tool used for resilience because it dramatically slows the network as more users come online. While we feel that a protocol like Ouroboros is perfectly suited to properly balance these conflicting demands, we admit that general network and database capacities aren’t quite ready for this task. The sole – and temporary – advantage that Cardano enjoys here is that we are new and won’t feel the pain of scale for the next year.
Yet we must remain vigilant in our efforts to address these concerns systematically as we have done with Ouroboros. Therefore, many of the most significant network improvements will be scheduled for deployment in late 2018 and throughout 2019. Third, there is a difficult balance between research and deployment. We have great protocols and protocol developers. We also have a unique advantage in being able to quickly submit papers for peer review in order to promptly validate them or fail fast, instead of enduring difficult lessons of hindsight that can result in the loss of funds. However, we cannot allow the urge to have something ready soon for commercial advantage to drown out proper process. With Ouroboros for example, we have a serious and ongoing formal specification effort using Psi Calculus to model and remove all ambiguity from our consensus protocol. This effort has been fruitful in dramatically increasing our understanding of all the benefits and sins of Ouroboros, but will not yield working code until the second half of 2018.
We deployed a rigorously built protocol for Byron, but one that does not enjoy a formal specification. There is always the chance we did something wrong, as with all software projects. There is always the chance we haven’t followed the intent of the scientists, despite our best engineering efforts. The broader point is that as our protocols increase in complexity, interdependence and with the use of more exotic cryptographic primitives, finding a balance will become more challenging. The saving grace we have is that many of our security assumptions are somewhat composable, we use great methods like Red-Black teams, peer review and formal specs, and using Haskell forces deeper conversations about intent.
The question of when to introduce smart contracts has become the most difficult issue of our roadmap. IOHK has brought some of the best minds from the programming language theory world, such as Professor Rosu and Professor Wadler, into the area of smart contracts. They have watched the world evolve from simple computers measuring performance in the megahertz and kilobytes of RAM to the internet age of big data, AI on demand and nearly unlimited processing power.
It’s an extraordinary honor and privilege to work with people with so much wisdom, hindsight and proven contributions to the fabric of computer science. Yet we also have the demands of Ethereum and the other systems that while lacking rigorous foundations have proven to attach a large following and much mindshare. We won’t accept the model of smart contracts is a closed matter and that these issues are now just a matter of optimization. We won’t accept that society is anywhere close to mass adoption of this new paradigm. It’s the beginning and it would be foolish to say Ethereum’s model is the one to back. Yet we acknowledge the need for something like that model. Therefore, we’ve decided to increase our allocation of resources towards two parallel tracks of research.
One is focused on fixing the issues that Ethereum’s hastily driven design process has yielded to the despair of those who have lost funds as a result. The other is focused on the ontology of smart contracts in general as well as different computational models that achieve similar ends without necessarily involving the new complexity or cost that Ethereum introduces. Professor Rosu’s team at the University of Illinois and the partnership with Runtime Verification is focused on the former effort. The work of Professor Wadler’s team is focused on the future and broader theory. We hope to establish more foundational research in the field of smart contracts, as Professor Aggelos Kiayias did with the GKL model and Ouroboros.
Next, there is the interplay between good partners like Bittrex, Ledger and others who are consumers of our APIs and have to deploy our software for thousands to use. The reality is that all interfaces are best guesses until they are used and then must change to conform with reality, not best intentions. We’ve already seen lots of room for improvement for our middleware layer, Daedalus’s design and also new features that would be helpful in making integration simpler and more cost effective. To this end, we’d like our first light clients to come from third parties instead of directly from IOHK, to force our documentation to improve and our software to become less arcane. Much of the effort towards Shelley (Cardano’s next major release) will be focused towards these types of improvements. They create a wonderful feedback loop that helps us make better decisions that benefit larger groups of users. Finally, the Cardano roadmap isn’t the property of IOHK, Cardano Foundation or Emurgo. It belongs to the community. When a cryptocurrency is new, it needs good shepherds to guide and steer, but we cannot allow the ecosystem to be ruled by a beneficent dictator or oligarchy.
This requirement creates some issues about scope. We have a clear idea of what needs to be done over the next 18 months to realize some of the technical requirements of Cardano from scalability to interoperability, but we cannot operate as a dictatorship pushing along and telling everyone to accept it. Cardano belongs to those who hold Ada. Thus we’ve decided to execute with three parallel paths. First, Shelley is our path to the full decentralization of Cardano. This must be done and we have decided to publish in full what Shelley entails. Next, there is the issue of Cardano Improvement Proposals (CIPs) and gathering consent for moving forward on whichever one is decided upon. We have invested a great deal of effort into building a solid voting system and will be releasing it for public review soon. This includes a standard for CIPs.
After Shelley, we will be proposing all changes to Cardano as CIPs and adding increasingly better democratic mechanisms to gather consent for these changes. The burden should be on us to inform and rally the community behind a direction. We cannot allow a technocracy to form alongside a cult of personality of the good leaders. Cardano must have the legitimacy of consent from its users. Finally, the roadmap needs to be often reviewed and updated. It cannot be a static document so we are going to run a monthly clock and update it frequently. We are also going to create a channel for people to proposal alternative roadmaps. As our users become more sophisticated and we accrue more enterprise partnerships, we fully expect divergent paths to be proposed and our hope is that they are better than our own. As a last thought, a cryptocurrency is only as good as the community behind it. We’ve been humbled by how amazing, patient and helpful our community has been. Our hope is that the roadmap is something we can build together over time and it becomes one of our strongest pillars.
To learn more about the project see the recent whiteboard video. Filmed on location at IOHK's Blockchain technology lab, Tokyo Institute of Technology - 東京工業大学
IOHK received both Bitcoin and Ada for its contract to work on the Cardano project. IOHK converted most of its Bitcoin at the time of receiving it to fiat in order to ensure project stability. With respect to IOHK's holdings of Ada, IOHK does not expect a need to liquidate any of its Ada to cover immediate costs related to the Cardano project until 2019. However, like most ventures in the cryptocurrency space, we have made certain payroll commitments in Ada to several IOHK personnel, contractors and third party firms.
Therefore, IOHK will voluntarily adopt the following vesting schedule for its Ada. A third of IOHK's Ada holdings will be immediately available to IOHK. A third will be made available after June 1st of 2018. The final third of IOHK's Ada will be made available after June 1st of 2019.
Charles Hoskinson will not receive any Ada until the final third of supply unlocks in June of 2019. When the computation layer of Cardano is released next year, IOHK will move its total Ada supply into a custom vesting contract to reflect the above policy.
In the spirit of full disclosure, IOHK's initial Ada address is: fa2d2a70c0b5fd45cb6c3989f02813061f9d27f15f30ecddd38780c59f413c62. We will make a follow-up statement when funds are moved to a custom vesting address.
As for Emurgo and the Cardano Foundation, we have requested both partners to make a similar statement about use of funds. As they are independent businesses, they will do so at a time and manner of their choosing.
Thank you all for being a part of Cardano
10 October 2017 Charles Hoskinson 3 mins read
Over two years ago IOHK joined a movement to build a truly unique collection of technology that married the best engineering principles with the dreams of scientists in far removed universities. It was a tremendously ambitious and complex project to grasp. Tens of millions of dollars would need to be gathered, long term roadmaps developed, research institutions established and properly managed as well as numerous entities staffed. In short, it was an insane project to attempt. Yet we attempted it.
Now there are well over 100 people working full time on the Cardano project, three research centers drafting peer reviewed papers, a legion of haskell developers pushing the limits of the language and three well capitalized entities with a mandate and funding to build Cardano until 2020 - IOHK, the Cardano Foundation and Emurgo.
It’s both unbelievable and humbling to see how far we have gone in such a short time. Cardano is literally evolving computer science from semantics based compilation to entirely new cryptographic protocols to formal verification of code. Cardano also managed to build an amazing community more than 10,000 strong in a slow and methodical way.
We launched the mainnet recently with very little fanfare and marketing. Rather it seems to be a small stop on a much longer and more elegant journey. While it’s certainly a challenging sojourn, I’m confident that we have come to know it and have developed the endurance to survive.
In reflection, I’ve been to over 30 countries since we started our journey. I’ve met thousands of people ranging from the bizarre to the saintly with a few notorious ones littered in between. The most remarkable thing so far has been experiencing the near unlimited excitement and youth regardless of where I went.
The world really does seem like it’s ready for a new financial system. It’s hard to say if Cardano can get us there, yet we aren’t alone any more. There’s now an army of some of the best throughout the world on this journey. Leaderless, inspired and brilliant, it’s an honor to be among them. I never believed I could be part of something like this movement.
Thank you all for being part of Cardano. Thank you for your patience when we have fallen. Thank you for your support and kind words. Thank you for your dreams. Now let’s get back to the road ahead. I’ve come to know this place for the first time.
Developing Cardano is no small feat. There is no other project that has ever been built to these parameters, combining peer reviewed cryptographic research with an implementation in highly secure Haskell code. This is not the copy and paste code seen in so many other blockchains. Instead, Cardano was designed with input from a large global team including leading experts and professors in the fields of computer programming languages, network design and cryptography. We are extremely proud of Cardano, which required a months-long meticulous and painstaking development process by our talented engineers. With that in mind, I’m pleased to report that we are finally reaching the end of development. The target launch date is September 29 and this is based on all current, known information. We had originally planned to launch by the end of August, so there have been a few additional weeks of development. The extra time was partly due to our team uncovering a few unexpected bugs which delayed testing of the overall network. It also took longer to set up Cardano’s internal test network than expected. But during those extra weeks, we have also been able to make enhancements to dramatically improve Cardano’s performance. One of the things engineers did to improve Cardano’s performance was to change the format of messages that are sent between nodes on the network. We upgraded our binary serialisation format from a custom version to one based on an open, common standard that means third parties, such as exchanges, will find it easier to build their own nodes, and our system becomes more transparent.
In recent weeks, engineers also made improvements to the network layer, rewriting code to make it run faster. The system is more stable under load and the number of transactions per second is higher. We are further improving the transaction speeds of the network and in the coming months after release will demonstrate our results. These two improvements took a few weeks to fully implement and test.
We have now added additional protection against DDoS, or distributed denial of service, attacks. The network’s core nodes have been placed behind firewalls, so they are not accessible from the public internet. This gives us some protection against this type of attack, because potential attackers can’t reach Cardano’s core nodes. To do this, we surrounded the core nodes with proxies, called relay nodes, which by contrast are visible to the internet. As their name suggests, these nodes relay messages to the core nodes. Even if there was an attack, the blockchain would be protected because the core nodes are not directly exposed.
We have also introduced improvements to Cardano’s delegation scheme, which keeps the network running even if its end users are not online, to strengthen it against attacks to its signature scheme. This provides an element of future-proofing by preventing attackers from stealing funds if new attacks against its signature scheme are discovered in the future. Cardano is based on proof of stake, so our solution is that Ada holders will have separate public-private keys for their coins and for their stake and the public key for the coins will not be published. This is the first step of a long term strategy to harden Ouroboros against quantum computers, a process which will require new research.
While all this work was going on during the past few weeks, the team has done a lot more testing, which is always good. We found bugs, which we fixed, and the testing gave us a better assurance of quality.
Recently, IOHK research – our Ouroboros and SCRAPE papers – were also accepted to two major conferences, ACNS in Japan, and Crypto 2017 in the US, and we were very proud our work has been recognised by the academic community and has been peer reviewed. A major exchange that has agreed to list Ada at launch has also been integrating with Cardano’s network. As a result, we have been adding some recommended features and minor changes.
All this development work has meant that Cardano’s code has changed, sometimes significantly. That means everything has to be retested. You can’t simply update code and assume that everything will be fine. The process of releasing a new version of the software takes a couple of weeks because that is how long it takes to test, and fix bugs and carry out tasks such as preparing new installers.
Development has been a lengthy process but we are now very pleased to share a detailed plan showing the launch countdown. Cardano is a unique and very special product and we look forward to passing it into your hands.
I’m delighted to announce the release of Why Cardano, a document explaining the philosophy behind the design and development of Cardano. Publishing this is a key milestone for the project and I hope it helps with explaining why we are building Cardano. The document is fully translated to Japanese, Chinese and Korean, also join the community by visiting Cardano community social channels via cardanohub.org.
Cardano is a project that began in 2015 as an effort to change the way cryptocurrencies are designed and developed. The overall focus beyond a particular set of innovations is to provide a more balanced and sustainable ecosystem that better accounts for the needs of its users as well as other systems seeking integration.
In the spirit of many open source projects, Cardano did not begin with a comprehensive roadmap or even an authoritative white paper. Rather it embraced a collection of design principles, engineering best practices and avenues for exploration. These include the following:
- Separation of accounting and computation into different layers
- Implementation of core components in highly modular functional code
- Small groups of academics and developers competing with peer reviewed research
- Heavy use of interdisciplinary teams including early use of InfoSec experts
- Fast iteration between white papers, implementation and new research required to correct issues discovered during review
- Building in the ability to upgrade post-deployed systems without destroying the network
- Development of a decentralized funding mechanism for future work
- A long-term view on improving the design of cryptocurrencies so they can work on mobile devices with a reasonable and secure user experience
- Bringing stakeholders closer to the operations and maintenance of their cryptocurrency
- Acknowledging the need to account for multiple assets in the same ledger
- Abstracting transactions to include optional metadata in order to better conform to the needs of legacy systems
- Learning from the nearly 1,000 altcoins by embracing features that make sense
- Adopt a standards-driven process inspired by the Internet Engineering Task Force using a dedicated foundation to lock down the final protocol design
- Explore the social elements of commerce
- Find a healthy middle ground for regulators to interact with commerce without compromising some core principles inherited from Bitcoin
From this unstructured set of ideas, the principals working on Cardano began both to explore cryptocurrency literature and to build a toolset of abstractions. The output of this research is IOHK’s extensive library of papers, numerous survey results such as this recent scripting language overview as well as an Ontology of Smart Contracts, and the Scorex project. Lessons yielded an appreciation for the cryptocurrency industry’s unusual and at times counterproductive growth.
Chief executive officer