Staking pool operators (SPOs) produce blocks in the Cardano network. No one but them can control what transactions get into the blocks. This is a big responsibility but also an opportunity to abuse their position. Let’s describe the basic principles of distributed networks and explain that the ability to reorder transactions is not a bug in the network, but a feature that can be exploited.
TLDR:
- The rules of the Cardano protocol are defined in the source code and anyone in the world can fork the code and change them.
- The ability to change protocol rules is not a bug of the network, but a feature of open-source distributed networks.
- Violation of fundamental rules is not possible, as other nodes would not accept it.
- 100% compliance would require centralization or closed source.
- If the majority is unable to enforce its demand, the network is not sufficiently decentralized.
- A decentralized network is able to maintain its basic properties regardless of the small number of participants who break the rules.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: Can SPOs reorder transactions? | Cardano Explorer