Cryptocurrency researcher Hans Schmiedel, operator of Seaside Staking service for ADA holders, explains benefits of Mithril mechanism
With the Mithril instrument, Cardano (ADA) accounts can be integrated into the most secure and decentralized multi-signature scheme. “Crypto magic” can bring staking into multi-signature transactions.
Here’s how staking can be useful in multi-sig instruments
According to the explanation shared by Mr. Schmiedel, Mithril works not unlike existing multi-signature solutions. In multi-sig systems, transactions need to be approved by the majority of participants.
In some multi-signature designs, the limit is even higher: the crypto segment is familiar with 6/7 and 7/8 multi-signature wallets. Mithril’s multi-sig architecture advances this process: it allows users to take into account the number of ADAs staked by signers to weight their roles in approval processes.
This solution, proposed by Input Output Global’s lead developers Pyrros Chaidos and Aggelos Kiayias, makes multi-sig designs fairer and more inclusive:
To sign a message, m possible signers are randomly selected based on their stake. If k out of m signs, a complete signature is obtained (…) The parameters for this are very important, because you wouldn’t want just 3 holders “representing” the whole network.
Mithril design would be relevant for numerous use cases in Web3. Mr. Schmiedel is certain it can be useful for approval of blockchain checkpoints and even a Voltaire-era upgrade.
Cardano dApps ecosystems set new records
Mithril’s efficiency is guaranteed by its logarithmic complexity and sophisticated software design.
As covered by U.Today previously, in Q2, 2022, the growth of Cardano’s ecosystem accelerated: it onboarded over 1,000 applications from various spheres.
Most of the time, these applications come from the NFT segment; digital token collections and the marketplace are responsible for almost 50% of all dApps. Stablecoins, developer tools, and communities are also important to the Cardano (ADA) ecosystem.
