Cardano is gearing up for the Chang hard fork, which will mark the beginning of the Voltaire era by ushering in on-chain governance. This upgrade is set to empower ADA holders with the ability to directly participate in decision-making processes, thus bringing the platform one step closer to achieving a fully decentralized blockchain ecosystem.
Cardano’s development journey is segmented into distinct phases, referred to as “eras,” each named after noteworthy poets, mathematicians, or computer scientists. These eras serve as milestones, with each phase being characterized by significant upgrades introduced through hard forks. The progression is as follows:
– Byron: Laid the foundation for Cardano’s network, enabling ADA transactions.
– Shelley: Transitioned the network towards decentralization through community-driven block production.
– Goguen: Brought in smart contracts and a platform for building decentralized applications.
– Basho: Focused on enhancing scalability and interoperability.
– Voltaire: Set to introduce decentralized governance.
The Chang hard fork is a pivotal moment in Cardano’s journey, marking the inception of the Voltaire era. One of its key features is the introduction of on-chain governance, allowing ADA holders to vote on protocol changes and governance actions. The upgrade also includes the option to delegate voting power to designated representatives, known as DReps.
Another highlight of the Chang hard fork is the introduction of PlutusV3, which brings forth new cryptographic primitives aimed at enhancing the security and efficiency of operations on the blockchain. For instance, the inclusion of BLS12-381 and Keccak-256 cryptographic functions bolster the reliability and speed of processes like zero-knowledge proofs and digital signatures. Additionally, the introduction of bitwise primitives offers developers tools to optimize data handling within smart contracts, thereby improving execution speed and reducing costs for decentralized applications (DApps).
Impact on Developers:
The upgrades introduced through the Chang hard fork are expected to streamline the development of more complex and efficient DApps on the Cardano platform. This will enable developers to leverage the enhanced security features and optimized data manipulation tools to create innovative and scalable applications.
To support the new governance mechanisms and smart contract improvements, node operators, especially stake pool operators, are required to upgrade to version 9.1. The successful implementation of the hard fork hinges on 70% of the network’s stake pool operators upgrading to version 9.1. As of August 5, the adoption of the new version is already underway, with around 35% of operators having made the switch.
Historically, ADA’s price has exhibited a pattern of downturn post major Cardano upgrades, with the exception of the Allegra upgrade, which saw a 133% price surge. When excluding the Allegra hard fork from the dataset, the average price change post-upgrades reveals a decline of -14.74%. Given the current market conditions, it is challenging to predict ADA’s price trajectory following the Chang upgrade. However, if historical trends persist, a potential drop of around -15% could be anticipated in the month after the hard fork.
The Chang hard fork represents a significant milestone in Cardano’s journey towards decentralization and governance. With the introduction of on-chain governance and enhancements in PlutusV3, the platform is poised to offer a more robust and secure environment for developers and users alike. While the market impact post-upgrade remains uncertain, the fundamental improvements brought about by the Chang hard fork are set to pave the way for a more efficient and innovative Cardano ecosystem.
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