The IOHK, the firm that created Cardano, has recently made a considerable update that is associated with the release of the new era of the Cardano network called Shelley. The system now went from the Byron era (Ouroboros Classic) consensus protocol to an update named Ouroboros BFT (Byzantine fault tolerance). Based on an announcement by the company, following extensive testing on the testing system, Cardano is in the process of transferring to Ouroboros BFT from Ouroboros.
In the announcement, there was also mentioned that the change from Ouroboros Classic to Ouroboros Praos and integrated in the update. On the technical side, the update is a hard fork, which is a radical and planned change to the protocol of a Blockchain system. The update is a link between Ouroboros Classic and Ouroboros Praos that will establish the beginning of the Selley era.
Ouroboros BFT is a consensus protocol that is considered very safe, however, the decentralized nature of the system was compromised on the original version of the update. Ouroboros BFT is an algorithm that is linked to the family of Ouroboros, which also includes Ouroboros Classic, the current protocol of the Cardano network. According to a statement by IOHK, the network will fully shift to the new era later in the year of 2020. After that, the Ouroboros Praos will be implemented.
Owners of the ADA coin by Cardano were encouraged by IOHK to upgrade their system in order not to experience issues with the system. At the same time, new digital assets were not generated during the update. Users of the Daedalus wallet by Cardano were also notified to check that they are using the latest version that supports the update.