Sep 22, 2022 14:26
Not only Ethereum (ETH-USD) is offering consumers a significant upgrade this month. Although it has received less attention, Cardano (ADA-USD) has been working on its own network update, which is a desirable new addition to the network. The Vasil hard fork will deliver what, though? Will it serve as an ADA cryptocurrency catalyst?
Like Ethereum, Cardano is a layer-1 dapp network. Even a co-founder of Ethereum created it. After leaving Ethereum in 2014, Charles Hoskinson went on to launch Cardano as a research-based rival.
The network ultimately made smart contract functionality available in late 2021, enabling programmers to construct Cardano-native dapps. At market capitalization, ADA has risen to the top 10 cryptocurrencies by this time. But now, it is the second-largest layer-1 project in the world, behind only ETH, thanks to a significant number of decentralized applications (dapps) and upgrades to enhance developer and user experiences.
And while though Cardano has a market valuation that is several times that of Ethereum, the Vasil hard fork should help it close the gap, if only somewhat.
When the hard fork was initially revealed, there was a lot of anticipation for its June 2022 rollout. However, Cardano's Vasil deployment had several delays, same as Ethereum did with the Merge. It was given a firm release date of September 22 earlier this month. Here is what investors might anticipate with only hours left before Ethereum's rival ups the ante.
Upgrades to Cardano's hard fork will improve network performance.
Blockchain detractors aren't afraid to point out Cardano's shortcomings. And don't misunderstand me; Cardano has its fair share of problems, especially for a network of its magnitude. Many people are eager to point out that the network uses accounting standards that are far older than those of its rivals. Even with its own smart contract platform, its smart contracts are not as reliable. But that may change with the impending Vasil hard fork.
A large portion of the changes are very technical in nature and do not significantly alter how Cardano is used by end users. They do, however, promise to be highly helpful for developers and should greatly increase transaction volume and speed.
Cardano uses the same technology as Bitcoin for user money accounts (BTC-USD). While it accomplishes the task, compared to rivals, it is a significantly less high-performance technique. The most significant improvement is in the "unspent transaction output" method (UTXO). The Vasil hard fork seeks to reduce the amount of computation required to validate certain data by adding extra inputs.
Similar goals are pursued by other network modifications, such as the simplification of user-to-user data sharing. "Diffusion pipelining" is a significant upcoming enhancement. The blockchain will be able to complete several transaction stages simultaneously thanks to this technology. This will boost Cardano's scalability and significantly speed up transaction processing.
However, those waiting for a significant ADA crypto catalyst could be let down. What to anticipate may be gleaned from how ETH has behaved since the Merge. Although many had anticipated that the update would lead to a price increase, the coin instead witnessed a $400 price decrease. Simply said, price patterns continue to be determined by macroeconomic factors. Cryptocurrency prices won't be rising any time soon since the Federal Reserve has threatened to keep raising interest rates.
Sep 21, 2022 15:16
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