What Cardano’s Vasil Hard Fork Means for Blockchain

After a few delays and a few setbacks, Cardano’s long-awaited Vasil upgrade is finally complete live September 22.Externally, the hard fork is designed to help improve the scalability and general transaction throughput capabilities of the ecosystem, as well as advance Cardano’s Decentralized Applications (DApps) development capability.

to commemorate At the event, an announcement was made by blockchain company Input Output Hong Kong (IOHK), which is currently overseeing the design, build and maintenance of the Cardano platform – just minutes after development.

To get a fuller picture of what the upgrade represents and its potential impact on Cardano (and the crypto ecosystem as a whole), Cointelegraph reached out to Shahaf Bar-Geffen, CEO of COTI, a platform for creating decentralized A protocol for payment networks and stablecoins. In his view:

“The Vasil upgrade heralds a new era for the Cardano ecosystem and the entire decentralized finance space. This upgrade is designed to increase the scalability of the network and enhance Cardano’s smart contract capabilities.”

Bar-Geffen further noted that the hard fork will significantly improve the efficiency of Djed, the algorithmic stablecoin jointly developed by IOHK and COTI Group, increasing the number of transactions conducted on the Djed platform, thereby helping to position Cardano as a major contender stablecoin trade.

Take a closer look at what Vasil has to offer

Before looking at the features and operational advantages that Vasil hard forks offer, it is best to understand what a hard fork is. In its most basic sense, a hard fork is a network upgrade, when the people who manage the blockchain platform decide to add or fix certain functionality to the ecosystem.

In other words, when a hard fork occurs, the network splits into two separate running versions, one that follows existing features and rules, while the other continues as an upgraded version of the network.

Charmyn Ho, head of crypto insights at cryptocurrency exchange Bybit, laid out her thoughts on the technical side of the upgrade, telling Cointelegraph that at the application layer, Cardano’s Vasil hard fork is designed to support the network’s current smart contracts, providing better access to both parties The experience for users and developers alike, adding:

“This will simultaneously lead to a more efficient build process for applications on-chain. At the infrastructure level, the many upgrades brought about by the Vasil hard fork will allow Cardano to increase its block size and TPS while maintaining its POS mechanism. “

Ho further emphasized that the Vasil hard fork is not only aimed at improving the scalability of the chain and optimizing its existing functionality, but also at enhancing the stability and connectivity of the network. “This is a huge and significant advance for Cardano, as the upgrade is expected to reduce transaction costs on the network while increasing transaction speeds,” she added.

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Finally, it’s worth noting that Vasil isn’t Cardano’s first major network upgrade, as about a year ago, the project saw the launch of another hard fork called Alonzo, which was designed to allow users to use Smart contract design DApp. The Alonzo upgrade, along with many other developments, is Cardano’s way of providing users with an attractive alternative to Ethereum, another platform that allows for the seamless development of new applications using smart contracts.

Why is Vasil so important?

Named after Vasil St. Dabov, a prominent member of the Cardano community who passed away in 2021, the upgrade will improve the ecosystem’s transaction throughput, efficiency, and block latency. Additionally, the hard fork will see the implementation of a technique known as diffusion pipelining, which is designed to improve block propagation times while increasing the network’s transaction processing power.

The Vasil hard fork will introduce three key Cardano Improvement Proposals (CIPs), namely CIP-31, CIP-32, and CIP-33. In this regard, CIP-31 will push for the introduction of a new reference input mechanism that will allow DApps to access transaction output data without having to recreate it as before, making the whole process very simplified and time-saving. Meanwhile, CIP-32 aims to improve Cardano’s native level of decentralization by introducing on-chain data storage capabilities for network participants.

CIP-33 will simplify transactions by changing the system’s native programming scripts, resulting in faster processing and lower fees. Finally, another improvement called CIP-40 will be introduced as part of Vasil. It will introduce a new mechanism for output transactions to help improve block transfers that do not require full verification.

Other updates include enhancements to Cardano’s native smart contract programming language, Plutus, which will now feature more advanced features than previous iterations. Not only that, but Vasil will also improve the security of the platform by more easily interacting with Cardano’s UTXO model, which builds a model similar to Bitcoin, while keeping its transaction payload off-chain.

Potential impact on ADA

While the first round of the hard fork started on September 22, the remaining upgrades will go into effect on September 27. At this point, the second phase of the hard fork will redefine Plutus’ cost model, which has a direct impact on the processing power and memory fees required to manage Cardano’s native smart contracts.

In addition to the Vasil upgrade, the Cardano team also revealed that they have been working tirelessly to develop their Layer 2 scaling solution – the Hydra header protocol – which is capable of processing transactions from the Cardano blockchain while still using it as its core Security and settlement layers.

At this point, a recent update from the Cardano team shows that it has successfully resolved a known issue with the Hydra node framework. As it stands, there is no set release date for the agreement. However, the IOHK team hinted that the product could hit the market sometime in late 2022 or the first quarter of 2023.

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Vasil was slated to go live earlier this year, but has encountered many setbacks. Although the upgrade is now live, the ecosystem continues to suffer from these delays. For example, since the beginning of 2020, Cardano’s native cryptocurrency, ADAcontinue to witness dip in its trading volume. Not only that, but from a pure price/performance perspective, the upgrade didn’t do much to boost the value of ADA, which lost less than 1% in a week.

While ADA’s price action continues to remain subdued, the Cardano ecosystem has made such tremendous progress over the past year, which suggests that the project appears to be well-positioned for major events in the near to medium term.