After all of the delays, the much-anticipated Cardano hard fork may finally happen, with an official release date of September 22nd. Initially, the Cardano team proposed a release date in late July, however, this did not occur. Surprisingly, the new launch date coincides with the widely anticipated Ethereum merger on September 17th. The repercussions of the two big crypto milestones remain unknown, with experts projecting different outcomes. However, the following points should be noted:
Vasil Hard Fork Debut
The release of the Vasil 1.35.3 version, Basho, on September 22nd marks an important milestone for the Cardano network. The improved network is the result of community-driven Cardano improvement proposals (CIP) outcomes, in which participants determine which upgrades to pursue.
Currently, the new platform has a 75% scale of total blocks generated, with 25 upgraded exchanges representing around 80% of the network’s liquidity. It is an upgrade to the proof of stake (PoS) platform that offers additional functionality that will be detailed more below.
The hard fork introduces a new programming language for network developers that want to improve the condition of the existing mainnet. Plutus is a language improvement that will improve platform efficiency in two ways:
For starters, it is a better smart contract in terms of building ADA blockchain transaction processing algorithms. It allows developers to create upgraded contracts that instantaneously execute investor trades on agreed-upon terms. Second, the language is useful for developing superior decentralized programs (DApps) that function smoothly on the blockchain.
Reduced Latency in Block Production
After participants in the validation process give consensus for new blocks, Cardano encounters significant delays in block manufacturing and sharing. The upgrade, on the other hand, will eliminate such latency by making blocks sharable within five seconds of joining the network.
Solution for Scaling
The Basho phase provides diffusion pipelining methods, which improve the consensus layer performance of the network. As a result, block propagation will be at an ideal level, overcoming the existing network’s low throughput status through timely block transfer.
Furthermore, diffusion pipelining provides parallel block propagation at a time when increased investor participation necessitates scalability. Finally, network optimization is triggered by the notification of block transfer to peers prior to validation in order to ensure a smooth authentication process.
Ethereum 1.0 is a proof-of-work (PoW) execution layer, whereas its fork, the Beacon chain, is a proof-of-stake (PoS) control layer on an independent blockchain. However, the merger will bring the Beacon chain’s functionality onto the mainnet, making it a fully working PoS network.
The mainnet layer will continue to serve as the smart contract execution layer on the combined network, while the fork will handle all transaction data management. Following the merger, the following outcomes are expected:
Lower Energy Consumption
Eliminating the energy-intensive PoW and employing PoS validation techniques will reduce energy consumption during block creation by around 99%. To gain computational dominance, nodes in the present mining process rely on high hash power from mining pools. The new block generation technique, on the other hand, necessitates significant staking efforts, as the coins and time staked by participants fuel block creation.
High network efficiency and speed
The merged network enables node collaboration through sharding, in which groups of users receive blocks for validation. Staking ensures optimal block formation and transmission by concurrently validating many blocks. The network’s current speed of 15 transactions per second (TPS) will be increased to 100,000 TPS.
Lower Transaction Costs
Sharding also provides efficiency by ensuring that transactions initiated by investors, such as lending and borrowing, are validated on time, hence decreasing expenses.
Because the Beacon branch exists after numerous attempts using code audits to find spots of weakness, the network will have superior security outcomes. Eliminating such flaws during the merger trials results in a more secure platform with fewer problems that could threaten investor security.
Furthermore, the chain incorporates tight constraints under which rogue validators face penalties and network bans for validating incorrect transactions.
Despite the delays in implementing both the Ethereum merger and the Cardano hard fork, it is clear that many investors are waiting with bated breath. The hypotheses presented here represent the eagerness of the users to experience the milestones and enjoy or adjust to any results.
Many assume that the Basho (Vasil 1.35.3) launch on September 22nd is a hedge against probable severe market movements following Ethereum’s merger. Despite this, it is worth noting that both milestones will result in increased market capitalization due to improved throughput, network optimization, and security measures.