Cardano (ADA) Vasil Hard Fork: Everything You Need to Know – BeinCrypto

The Cardano (ADA) blockchain is ready for its Vasil hard fork update scheduled for September 22. Named after Cardano community member Vasil St. Dabov who passed away in 2021, this highly anticipated update is expected to bring drastic changes to the network, impacting transaction fees, network speed as well as the development of decentralized applications.

Founded by Charles Hoskinson in 2015, Cardano is a peer-to-peer blockchain that aims to overcome common cryptocurrency issues with scalability and interoperability, as well as other regulatory concerns. Trades are settled with the ADA token, native to the network, and which is now the eighth largest crypto asset in the industry by market capitalization, being valued at $15.39 billion.

Knowing that Charles Hoskinson is also a co-founder of Ethereum, which was the subject of an update last week, Cardano has struggled to escape the frequent, and often unfair, comparison with one of its biggest rival blockchains.

That said, there is no doubt that many in the ADA camp have been angered by what they see as a delay on Cardano’s past promises. However, that may well change.

What is the Vasil hard fork update?

According to the online financial dictionary Investopedia, a hard fork constitutes a complete change in the protocol of a network and creates a permanent divergence from the previous version of the blockchain. More recently, some Ethereum miners opted to stick with the old version of the network following its merger “The Merge” that occurred on September 15. They thus “forked”, either bifurcated or divided the Ethereum blockchain.

Originally scheduled for June or July, the Vasil upgrade is part of Cardano’s third development cycle, which was designed to improve network capacity, reduce transaction fees and make them faster. This update will bring a series of major changes to the blockchain, making it easier to use for users and developers of smart contracts and dApps.

Developers from parent company ‘Input Output Global (IOG) consider that Vasil is the “most significant update made” to date for Cardano, “affecting all layers of the network stack” and fixing a large number of bugs. Input Output is a development lab that helps maintain the Cardano blockchain.

Transaction costs

According to Cardano Foundationwhich oversees the development of the blockchain, the end result of the update will be an increase in block size, which will provide more space for data to be saved in each block added to the ledger.

The scope of the block changes is to reduce transaction size, which will increase network throughput while reducing transaction fees, Explain Tim Harrison, Vice President of Community and Ecosystem at IOG.

According to data from Messari, a transaction on the ADA blockchain currently costs an average of $0.16, which is one of the lowest fees in the industry. Vasil should further reduce this cost.

Average ADA fees – Source: Messari

The “scalability” of the Cardano network

Vasil is also expected to spawn numerous updates to Cardano’s Plutus network and smart contract programming language, which enables the development of decentralized applications, or dApps, on the blockchain.

The Cardano network has faced issues that have hampered the ability of its dApps to grow. Currently, according to the foundation’s site, more than 1,000 dApps are running on the network, and more than 40% of decentralized applications are focused on non-fungible tokens (NFTs).

It should be noted that dApps built on Cardano are programmed using a language called Haskell, a code that is then converted into the Plutus language. Plutus data is not stored on the blockchain; this means that “every time a transaction is performed, it must carry all the application logic with it.” However, more data slows performance and increases network costs.

The speed of ADA transactions

According to Harrison, Vasil will allow developers to store and reference information without having to use an output system. This should help “optimize transaction throughput and increase the competitiveness of the Cardano blockchain.” Thus, the speed of transactions should be increased from its current time of about 20 seconds.

When will this update take place?

Originally scheduled for July, the Vasil upgrade has been confirmed for this Thursday, September 22. Its founder Charles Hoskinson revealed at the beginning of last week that the launch of the hard fork was now in its final stages.

Input Output also announced that “the numbers are good for September 22, and the date of the mainnet update [réseau principal] was therefore fixed.” Dozens of exchanges, including Binance, have already signaled that they will support Vasil.

Will the Vasil update affect the ADA token?

Yes, but it is difficult to predict what the exact reaction of the asset will be. Indeed, Vasil turns out to be somewhat different in that “this is the only hard fork in Cardano’s history to take place during a bear market”. His predecessors Shelley, Mary and Alonzo unfailingly affected ADA’s price action: the asset’s price rallied before the updates, but then lost steam.

Analysts believe the same could be true for this hard fork, with the price already reacting with a small uptick after Hoskinson revealed his rollout date. Indeed, the ADA climbed about 9% to reach $0.49 on September 2.

Cardano price is currently up around 1% at $0.45 at the time of writing. According to CoinGecko, the asset has lost over 85% since its all-time high of $3.09 reached on September 2, 2021.

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Cardano (ADA) Vasil Hard Fork: Everything You Need to Know – BeinCrypto


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