In an article published by a group of students and advisor Andrew Miller detailed about the vulnerabilities that affected over 26 cryptocurrencies that were based on proof-of-stake [POS] to achieve distributed consensus.
It exposed any network attacker [with a very small or no stakes at all] to crash nodes by choking the nodes with ‘bogus data’. These vulnerabilities were termed as ‘Fake stake’ attacks. According to the team, the cause of Fake stake attacks was inadequate validation process by the user before committing their resources.
Cardano developer, Charles Hoskinson tweeted that Cardano [ADA] is safe from the recent reports of vulnerabilities spotted on POS v3 digital currencies and posted a link of the website, wherein an article published on the IOHK platform by Philipp Kant, Director of Formal Methods of Godel Team, elucidated as to why Cardano is secure from the vulnerabilities listed in the previous article.
In a POS system, the probability of block creation is relative to the amount of stake held by the user in the system. In version 3 of POS, the validation process of the block is very difficult. In addition to legitimizing the hash of the block, it is also mandatory to verify that the user owns the amount of stake that he has deployed for the process of staking transaction.
Highlighting the unique Oroboros protocol on which ADA is built, Philipp on his blog mentioned:
“For Cardano, IOHK took a different approach. Instead of finding a minimal variation of bitcoin, we relied on world-leading academics and researchers to create a new protocol and codebase from scratch”
The user who is elected to generate a block is called a slot leader. Election of a slot leader is determined by the amount of stake he owns. The slot leader is required to validate itself. Also, slot leaders for the next epoch are decided by the slot leaders of the current epoch.
All the POS v3 [reconstruct of the original bitcoin code] implemented systems work on the principle of replacing hashing power with stake for electing a slot leader. According to Philipp, all the vulnerabilities have cropped up due to modification on an existing protocol, which is not in the case of Cardano [ADA] since it has been developed from a whole new foundation of Ouroboros.
Owing it to the team that created the exclusive protocol, the blog further stated:
“Not only does Cardano have a fundamentally different foundation, but that foundation is the result of multiple peer-reviewed academic papers, and an unprecedented collaboration between researchers and developers.”
Big Green Apples, a Twitter user commented:
“I hope #cardano lives up to the hype. #MassAdoption”
Dog’s Picking Apples, another Twitter user said:
“It’s hard to have nothing on nothing. I mean if Cardano actually had staking available, then you could say that, but since you don’t…. you’ve got nothing on nothing and they’ve got nothing, so you’re both kinds nothing’s.”