What Is Ouroboros?
Also known as: Ouroboros Protocol, Ouroboros Praos
In short
Ouroboros is the family of Proof of Stake consensus protocols used by the Cardano blockchain, defined in peer-reviewed academic publications and with security analyzed mathematically. It selects block producers with a probability tied to stake.
In Ouroboros, time is divided into epochs and the time slots within those epochs. For each slot, a block producer (slot leader) is selected with a probability proportional to its stake; the larger the stake, the higher the chance of being selected. In the Praos version, leaders learn privately that they have been selected by using a verifiable random function (VRF); this makes it harder for attackers to target the parties that will produce blocks in advance.
On Cardano, ADA holders can delegate their coins to stake pools without locking them or handing over control; pool operators produce blocks, and rewards are shared with delegators. After Ouroboros Classic, the first version in the protocol family, improved versions such as Praos and Genesis were designed; these aim to increase resilience against different network conditions. The protocol's design was carried out by Input Output (IOHK) researchers and academics.
Ouroboros' energy consumption is very low compared with Proof of Work. However, as with Proof of Stake systems in general, the concentration of stake in large pools can raise centralization concerns; Cardano tries to balance this risk with mechanisms such as a saturation limit applied to pool rewards.
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