Cardano Infrastructure Decentralization Proposal: What It Means for ADA Prices

A Cardano member has submitted a proposal to have all ADA stake pool operators migrate from centralised solutions like Google Cloud and Amazon’s AWS. The member says these solutions could exert undue pressure on the decentralisation of the token and instead want the funds directed to the operators’ wallets. Cardano has been on a path [...]

Oct 17, 2024 - 19:25
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Cardano Infrastructure Decentralization Proposal: What It Means for ADA Prices
Cardano
  • A Cardano member has submitted a proposal to have all ADA stake pool operators migrate from centralised solutions like Google Cloud and Amazon’s AWS.
  • The member says these solutions could exert undue pressure on the decentralisation of the token and instead want the funds directed to the operators’ wallets.

Cardano has been on a path to decentralisation, with recent upgrades paving the way for the original developers to hand over control to the people. However, it still relies on centralised solutions like Amazon Web Services (AWS) and Google Cloud. One Cardano member now wants these services pushed out to ensure that Cardano continues on its journey of decentralisation.

Community member Jerry Hall submitted the proposal this month, noting:

The issue is: First, the majority of computation for the network is handled by large corporations, rather than participants. Second, the transaction volume does not reflect the network’s potential.

He notes that one of Cardano’s main criticisms is that it lacks users and transaction volumes compared to its rivals. A spark is needed, and according to Hall, this can only happen if the dApps in the ecosystem have something to offer.

He proposes partnering with HyperAlliance, a firm developing in-home appliances specifically for AI computation. This is the same hardware configuration that the HyperCycle network relies on. Hall believes that “we can bring a very substantial amount of engagement and economic activity directly to the Cardano network participants, especially Cardano Home Portal owners.”

Once the stake pool operators plug in their Cardano Home Portals and go online, they will immediately start rerouting the funds that were previously going to Google, Amazon, Microsoft and others to their digital wallets. The proposer added:

Cardano is the most decentralized blockchain, but in order to create true decentralization, we need to make it easy for people to run their own Cardano node and help the API providers with their load to make querying operations sustainable.

Hall noted the irony of the crypto industry, where we feed the same monsters that we are fighting, which is centralisation.

Indeed, Cardano is leading the way in decentralisation. It’s currently in the Voltaire phase, which is the final era in its roadmap and is fully focused on decentralisation. It comes with an on-chain governance system where ADA holders have the power to determine the direction of the project and a treasury system where the community decides what to do with the funds.

ADA could greatly benefit from the proposal to skip centralised platforms. As outlined, it advocates for the funds that previously went to the likes of Amazon and Google to be rerouted to the ecosystem, boosting the funds available to the users and the stake pool operators. This would ultimately hand a massive boost to ADA.

ADA trades at $0.3469, dipping 2.5% in the past day to bring its gains over the past week to 3.55%.

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