Cardano is one of the most popular cryptocurrencies that competes with Ethereum. The interest in Cardano and its token ADA is extremely high due to its special technical requirements. After the big bear market in 2022, many investors are awaiting the next Cardano update in hopes of pushing prices upwards. When Will Cardano Update 2022 Begin? In this article, we want to take a closer look at how Cardano is developing and when the next major Cardano update is due. Learn more about the future development of Cardano!
What is Cardano?
Cardano is a blockchain network founded in 2017. Ethereum co-founder Charles Hoskinson was the founder of Cardano. The Cardano blockchain uses the efficient Proof-of-Stake consensus mechanism. Cardano’s native token is called ADA.
Cardano is a blockchain whose development is planned for the long term and will be further developed according to scientific standards. As a result, Cardano adopts the best features of other blockchains and improves the errors of these blockchains in its own project. Most recently, Cardano introduced smart contracts.
How has the price of ADA developed in recent months?
Like all other cryptocurrencies, the value of the ADA token has developed negatively in recent months. Because since November 2021 we have been in a bear market. Bitcoin and Ethereum prices hit their all-time highs this month. Prices have been falling steadily since November.
Cardano (ADA) reached its all-time high in September 2021. At that time, the ADA token reached a value of over 3 dollars. But after that, there was a drop in the ADA price. This was largely due to the emergence and rising popularity of blockchains like Solana and Avalanche. These are on “Ethereum alternatives” in competition with Cardano.
What makes Cardano so special?
Cardano is a blockchain-backed by the Cardano Foundation. This organizes the further development of the network. Evidence-based methods are used to further develop the Cardano blockchain. The development is geared towards the long term and should ultimately result in the most technically sophisticated blockchain.
The further development runs in several phases, in each of which work is carried out on a focal point. This led to criticism that Cardano is developing too slowly and is not economical. But after the big Alonzo update in 2021, the ADA price rose massively.
What are the 5 phases of Cardano and what is the next update?
Cardano is divided into 5 phases in development. Below is a brief summary of these phases:
Bryon : Byron created the complete technical basis for Cardano. The network token ADA and the proof-of-stake protocol Outboros were created.
Shelley : At Shelley, decentralization of the network was the main focus of the developers. At the end of the development, the Cardano network was 50 to 100 times more decentralized than before.
Goguen : Goguen took the big step towards smart contracts. With the introduction of smart contracts, Cardano could now be the basis of decentralized applications.
Basho : Cardano is currently in the basho development phase. The aim is to massively increase scalability and interoperability. In the end, the transaction speed could be up to 1,000 transactions per second.
Voltaire : The last development step is to develop the governance functions at Cardano. In this way, participating parties in the Cardano network can also influence the development of Cardano.
At the moment we are in the basho development phase. This link gives you an overview of the Cardano roadmap.
The upcoming next update at Cardano is the Vasall hard fork . This update should immediately reduce the cost of transactions at Cardano. The update is scheduled to start on June 29, 2022 for the Cardano blockchain. The Vasil hard fork was already launched in its public testnet.
In addition to reducing transaction costs, the Vasily hard fork is intended to improve the stability and connectivity of the Cardano blockchain. The reduction in transaction costs comes about through the CIP-33 mechanism.
In addition, the Vasily hard fork also contains CIP-31 and CIP-32 as an update for Cardano. The CIP-31 upgrade allows dApps to interact with Cardano more efficiently. CIP-32 allows developers to store data “on-chain” on the Cardano blockchain.
What does the update mean for Cardano?
The Vasil hard fork significantly improves the Cardano blockchain in various aspects. The reduction in transaction costs makes the Cardano blockchain even more attractive for decentralized applications. Furthermore, this bridges the time until the large-scale developments within Basho, which should make Cardano the most efficient and fastest blockchain on the market.
Cardano is in competition with other blockchains such as Ethereum or Solana. The Ethereum blockchain is number 1 for decentralized applications. Ethereum has been offering smart contract functions for several years and was revolutionary in doing so. In recent years, however, more and more projects have emerged that want to attack the Ethereum Blockchain.
Cardano has become known as the “Ethereum killer” in recent years. Because the Cardano blockchain has some advantages over the Ethereum blockchain. With the Ethereum 2.0 update, Ethereum wants to solve its problems in the long term. If Cardano wants to attack Ethereum in the future, the blockchain needs continuous development.
Can Cardano Price go up after the update?
At the moment, the price of the ADA token is extremely low due to the bear market. The update could lead us to see a slight recovery in the ADA price again. However, a major bull run is unlikely in the short term since the market is in such a downtrend at the moment.
In the medium and long term, however, Cardano is a project that could increase in value massively again. It is even possible that in the future Cardano can replace the Ethereum blockchain at the top of the foundation for decentralized applications. In a few years, prices of 100 dollars or 1,000 dollars are possible here. The currently extremely low prices are therefore a good opportunity to make a long-term investment.
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