Cryptocurrency Cardano before a major upgrade: With these improvements, the Cardano network wants to score points compared to the Ethereum merge

• Vasil hard fork on Cardano on September 22nd
• Upgrade should bring more scalability and lower fees
• More potential for smart contracts on the Cardano blockchain?

In the crypto community, the Ethereum merge on September 15th has been the focus of attention in recent weeks. But Cardano, the eighth largest cryptocurrency with a market capitalization of around 16 billion US dollars, is also due for an important update – just in time. Because if the Ethereum blockchain is also based on the proof-of-stake mechanism in the future, which has been the case with Cardano for some time, the cryptocurrency loses the advantage of offering a more economical alternative to ether and co. However, with the upcoming hard fork called “Vasil”, Cardano wants to introduce some changes to improve the performance of the network.

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Vasil postponed multiple times – “Most difficult update” in Cardano history

The Cardano network has already had three hard forks, the last one called “Alonzo” took place on September 12, 2021. About a year later, namely on September 22, 2022, the next important update is the Vasil Hard Fork. According to “t3n”, the hard fork is named after the Bulgarian community member Vasil Dabov, who died in December 2021, and was originally supposed to be carried out in June. However, technical inadequacies, poor testing and poor communications management led to a double postponement, according to Investing.com. According to “t3n”, Charles Hoskinson, one of the founders of Cardano, himself admitted that “Vasil had reached its limits a little”. “It was probably the most difficult update we’ve ever had to make as an ecosystem,” continued Hoskins.

Now, however, the problems seem to have been resolved and the date of September 22 – Bulgarian Independence Day – fixed, because the developer company IOHK, which is behind Cardano and is led by Charles Hoskinson and Jeremy Wood, officially announced the hard fork on Twitter.

The majority of the leading crypto exchanges have started the update process and are expected to complete it in time, the Sept. 2 Twitter thread also said. According to IOHK, the technical transition should be seamless and without interruptions to block production or users. The latter need not become active themselves.

The hard fork at Cardano should bring these improvements

IOHK’s tweets describe Vasil as “the most significant Cardano upgrade yet,” which is said to bring increased network capacity and lower transaction costs. According to “BTC ECHO”, the increasing performance of the Cardano network will also lead to better scalability of the Cardano blockchain and higher transaction speeds.

Vasil should also bring about positive changes in the area of ​​smart contracts. IOHK announced improvements to the Plutus smart contract development platform via Twitter “so that developers can create more powerful and efficient blockchain-based applications”. The Plutus script was only introduced in September 2021 with the Alonzo upgrade, but it initially fell short of expectations.

However, with the changes that have now been announced, the way is clear for scalable DeFi applications on Cardano, according to “BTC ECHO”. So far, Cardano – unlike its big competitor Ethereum – has hardly played a role in DeFi or NFTs according to “Trending Topics”. However, this could change after the upgrade and thus bring new users to the Cardano blockchain, which could also benefit the price of the ADA token.

This is how the ADA price reacts to the upcoming hard fork

Should DeFi applications and NFTs on the Cardano blockchain actually gain popularity after the Vasil hard fork, this would also benefit the ADA token, as it would be used in corresponding transactions. Recently, however, its performance has been anything but pleasing: the cybercoin – like other cryptocurrencies – has been under significant pressure since the beginning of the year. So far, the digital currency has only benefited little from the upcoming upgrade – unlike in the run-up to the Alonzo hard fork last year. At that time, ADA reached a new all-time high of 3.10 US dollars shortly before the important event. Currently, however, a coin only costs 0.4681 US dollars (as of September 13, 2022). After all: Since the 52-week low, which was reached in mid-July at 0.4064 US dollars, it has risen again by around 15 percent. It remains to be seen whether further price increases are possible after the upcoming upgrade.

Editorial office finanzen.net

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