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Cardano’s smart contract platform (ADA) gets an upgrade called Vasil. The five-day hard fork process begins today. According to the Cardano Foundation, it will improve network performance. What can investors expect?
Cardano gets an upgrade on Vasil
Cardano co-founder Charles Hoskinson calls Vasil “the hardest update” the developers have made since the project began in 2017.
A so-called hard fork occurs when a network’s code fundamentally changes and requires the creation of a new and separate version of a blockchain. They can be controversial, but not always.
For example, the Ethereum network experienced a hard fork after the merger last week. This attempted to maintain a proof-of-work version of Ethereum that relies on miners to verify transactions.
However, the Vasil hard fork will leverage Cardano’s hard fork combination technology. According to the Cardano Developer Input Output, this introduces new functions without losing data from the older version of the blockchain.
Frederik Gregaard, CEO of the Cardano Foundation said: The main advantage of the Vasil hard fork is the reduction of transaction times. Gregory:
“Vasil will enhance Cardano’s smart contract capabilities through Plutus V2, adding more efficiency to an already powerful smart contract platform. Ultimately, it will reduce script execution costs and transaction size, and improve throughput.”
In other words, after the Vasil hard fork and the upgrade of the Plutus scripting language on September 27, it will be possible to write Cardano smart contracts with less code. This allows for lower transaction fees because more of them can fit in each block – or batch of transactions – on the network.
Cardano: Vasil receives a set date hard fork
This is a major development for Cardano DeFi projects like the Indigo Protocol, which has been running its synthetic asset project on the Vasil testnet since July.
Indigo allows users to trade synthetic versions of assets, such as TSLA shares, without actually owning them. Instead, users can buy and trade iTSLA, backed by TSLA shares, through Indigo. The company writes in a blog post:
“Cardano fees incurred by Indigo users have been significantly reduced by reducing the script overhead for reading data from the blockchain.”