Cardano Vasil Hard Fork Completed. What will happen next?

Nevertheless, since the start of the pandemic, the native ADA coin of the Cardano blockchain platform has grown by more than 10 times, reflecting the growing interest among developers in building decentralized apps (dApps) for a large user base.

cardanoProfits derived from the Ouroboros blockchain system have contributed to the launch of over 1,000 dApps that rely on its scalable and secure smart contracts.

With the aim of further improving transaction speed and increasing the scalability of the blockchain, Cardano envisioned its Vasil hard fork and was pursuing its implementation for the better part of 2022.

The release of the new functionality via the Vasil hard fork on 22 September was announced on Twitter by Cardano’s design and development team, Input Output Hong Kong (IOHK), and was described as the second largest event in the cryptocurrency world after the merger with Ethereum. is seen as.

Cardano is well on its way to becoming an “Ethereum-killer”, as predicted by both experts and cryptocurrency developers, thanks to advances such as improved transaction processing capabilities and quicker block propagation times.

What benefits does Vasil hard fork provide?

The Vasil hard fork promises to uncover enormous potential for Cardano’s community of consumers and developers, even though this isn’t the first time the cryptocurrency has operated a hard fork, which is effectively a network upgrade where new features are available. Or past problems are resolved.

By strengthening the capabilities of its smart contracts, Cardano’s Vasil hard fork provides a significantly enhanced experience for developers and lower transaction costs for its users.

Following the Alonzo upgrade introduced by the blockchain platform last year, the latest upgrade not only builds on that, but also introduces a new concept called ‘diffusion pipelining’.

As a result, the Cardano blockchain now offers better data processing within and between chains, as well as faster transactions per second by cutting down on the time required to transfer blocks (TPS).

Three significant Cardano Improvement Proposals (CIPs), namely CIP-31, CIP-32, and CIP-33 have also added new features, such as a new reference input mechanism, the addition of an on-chain storage facility, and a lighter programming script.

Above all, Cardano’s native smart contract programming language Plutus has gone through another iteration to make it more powerful and bring new security improvements while keeping the transaction burden still off-chain.

ADA Price Reaction to Cardano’s Hard Fork

Cardano’s ADA currency has not shown the same level of enthusiasm despite all the buzz and considerable technological upgrades made to its blockchain architecture.

After the announcement of the Vassil hard fork implementation, ADA corrected almost 10%, and the technical indicators also do not give much hope.

However, it can be argued that the ADA token is only responding to market forces given the severe pessimistic sentiment prevailing in global markets, their ripple effect on the entire cryptocurrency ecosystem, and Ethereum (ETH) comparable after its merger. There is a declining trend.

However, investors can expect some interesting follow-up information from the Cardano team, such as the ongoing development of Cardano’s Layer 2 scaling solution, known as the Hydra Head protocol, which could be operational by the first quarter of 2023. .

The Cardano blockchain appears to be on track to move better, struggling with delays in the implementation of the Vasil hard fork and facing low transaction volume for most of 2022.

Long-term crypto investors who entered the fray before the COVID19 spike will be less concerned with the recent performance of the ADA coin.

However, short-term investors or those who entered the boom cycle of 2021 can take comfort from the fact that Cardano is one of the largest cryptocurrencies by market capitalization and enjoys a very healthy trading volume on various crypto exchanges. .

Hence, the price of ADA token is now at a very important support level and future holdings should be made only after considering one’s risk appetite.

For those who believe in the power of dApps and the limitless potential that the Web3 future will provide, the ADA token offers a very attractive risk-reward ratio and is backed by a fairly large transaction volume moving across the Cardano network. Price hike can be observed.

That being said, it is even more likely that the Cardano blockchain will be their top choice as the advantages of the Vasil hard fork begin to grow and developers move into the dApp space to grow the growing Web3 space.