Cardano, the waking giant
Cardano is seeing increased investor attention after it successfully implemented the Vasil hard fork on its test network. After Cardano successfully forks on the main network, the total value locked (TVL) is likely to increase as the fork should improve the overall performance of the blockchain, which will result in increased developer activity. TVL is the amount of user funds deposited in a decentralised finance (DeFi) protocol. These funds are then granted within the project and used for staking, liquidity pools or lending.
What is Cardano?
Cardano is a proof-of-stake (POS) blockchain with a native cryptocurrency called ADA — taking its name from mathematician Ada Lovelace. Ethereum co-founder Charles Hoskinson founded Cardano to compete directly with the current smart contract heavyweight Ethereum.
Cardano calls itself the first third-generation cryptocurrency. Simply put, it aims to tackle the scaling and infrastructure problems facing Bitcoin, a first-generation cryptocurrency that introduced the idea of digital coins and Ethereum, a second-generation cryptocurrency which expanded the use case for coins to smart contracts. Specifically, Cardano aims to solve problems related to scalability, interoperability (how blockchains communicate with one another), and sustainability on cryptocurrency platforms.
What is a smart contract?
A smart contract refers to a computer program that lives on the blockchain. These programs automatically run when a set of predetermined conditions are met. With the help of smart contracts, the blockchain network becomes a programmable platform that can host other decentralised applications known as dApps — similar to how apps work on your phone’s operating system. Smart contracts have become a crucial part of the cryptocurrency market and its subcategory, the Decentralised Finance (DeFi) market.
What is the Vasil hard fork, and what implications will it have on the Cardano blockchain?
The Cardano ecosystem is set to undergo an essential update of its general codebase. The hard fork, Vasil, is named after mathematician and Cardano enthusiast Vasil Stoyanov Dabov. The term hard fork refers to when nodes of the newest version of a blockchain don’t accept the older versions, which causes the blockchain to diverge permanently from previous versions. Simply put, the network splits into two versions, one that follows the previous protocol and one that follows the new one.
The Vasil hard fork aims to make the Cardano blockchain developer friendly and shift to a more resource-optimised system. The upgrade will look to bolster developer activity and increase the usage of Cardano’s programming language, Plutus. Not only will there be an influx of dApps built on the blockchain, but the upgrade might bolster existing dApps by increasing their speed and transactional capabilities.
The Vasil hard fork was successfully implemented on the Cardano test network at the beginning of July and is expected to launch on the main network in the middle of August, despite minor delays. The anticipation of this event has seen an increase in the popularity of Cardano amongst developers and investors alike, with it being the most searched coin on the Revix platform next to Bitcoin.
How has the upgrade affected Cardano’s performance?
ADA has seen a monthly price change of 10.48% due to the above news. If the upgrade is implemented smoothly and efficiently, ADA will be on the watchlist of many crypto investors, especially with ADA still being 83.72% off its all-time high price of $3.10.
Performance of Cardano over July 2022
Where can I buy Cardano?
Cape Town-based crypto investment platform Revix (www.revix.com), backed by Sabvest, a JSE listed company, has Cardano as a stand-alone product and part of its Smart Contract Bundle, which provides investors with diversified exposure to the top five assets leading the way in the smart contract sector. To effortlessly invest in Cardano, click here.
