Vasil Hard Fork
What does Hardfork mean in Crypto?
A hard fork in cryptocurrency or blockchain-related-term refers to an upgrade on an existing network’s protocol that resulted in two routes, the old protocol that will be obsolete and the other that follows the new version. Once there is a hard fork, nodes of the new version of a blockchain will no longer accept the older version and create a permanent diverging branch of the blockchain.
A fork can also be referred to by adding a new rule to the code in the blockchain. Those on the old chain will eventually realize that their version of the blockchain is obsolete and then upgrade to the newest version.
There are various reasons why some chains decided to implement a hard fork, such as to improve security measures, add new functionalities, or even reverse transactions.
What will the Vasil hard fork do?
Vasil hard fork, which will be operated on the Cardano blockchain, is a backward-incompatible upgrade taking place on the main network that is intended to enrich smart contract capabilities, increase the chain’s throughput and reduce costs.
The main change is that Vasil hard fork will deliver a second version of Cardano’s scripting language, Plutus version (v)2 allowing for a tweak in the way the reference scripts are handled resulting in a drastic reduction in the size of transactions.
Another improvement after the Vasil hard fork is “diffusion pipelining” which will increase Cardano’s speed and scaling potential by reworking how the idle blocks are validated.
What is Vasil upgrade Cardano?
The upgrade is expected to bring changes in terms of transaction fees, scalability of DApps, and transaction speed.
Vasil hard fork update is expected to shrink transaction sizes, thereby increasing network throughput, which will result in cutting transaction fees. Moreover, it is expected that the upgrade will drastically boost the scalability of Cardano’s DApps. Lastly, Vasil will optimize transaction throughput and increase the concurrency of the Blockchain. This will also significantly increase transaction speed.
When Cardano upgrade?
According to the Cardano roadmap, the hard fork was previously scheduled for July, Vasil hard fork date has now been confirmed to take place on Sept. 22.
What happens to your coins in a hard fork?
Cardano made it clear that the regular ADA holders don’t have to do anything during or after the Vasil hard fork upgrade as it all happens mostly behind the scene. The team makes the upgrade as seamless as possible for end users.
However, there might be some action regarding the price of ADA. From a fundamental perspective, the hard fork will improve the network's capabilities, especially as it relates to dApps and smart contracts. The improved efficiency will lead to more activity which means more usage of Cardano's blockchain and its native token ADA. Recent hard forks from Cardano also led to a spike in ADA’s price and when down after minor bugs and problems are found.
After all, this will be the first hard fork from Cardano that is taking place amidst the bear market condition. This creates diverse speculations on the direction of ADA’s price and is quite unpredictable at the moment.
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