Why the VASIL hard fork is a big deal for Cardano

Why the VASIL hard fork is a big deal for Cardano

Why the VASIL hard fork is a big deal for Cardano

Now that the Cardano developers have hit their stride, the smart contract platform that Charles Hoskinson founded is attempting to become a more dominant player in the space. At the end of June the VASIL hard fork will go live and the Cardano community believes that it will be a major factor in attracting more users to the protocol.

VASIL will bring several noticeable improvements to Cardano, especially a new set of scaling solutions to increase throughput and reduce transaction fees.

Diffusion pipelining is one of the most anticipated updates, since it will have an immediate impact on Cardano’s scalability. Until now, block propagation has happened in six ordered steps on Cardano. This is a secure but rather inefficient way of propagating transactions through the network.

Diffusion pipelining streamlines the block propagation process - IMG Source

Diffusion pipelining will streamline the process of block propagation. It will merge several steps of the process so that they can happen simultaneously, reducing the time that nodes need to communicate with each other. More efficient block propagation will also create the possibility for larger blocks, further reducing Cardano’s fees.

Cardano Improvement Proposals 31 and 33 will add more smart contract functionality and also reduce transaction fees. According to the explanation on Cardano’s official Twitter page, CIP 33 will let reference scripts get attached to outputs. This will improve the efficiency of smart contract accessibility, which should lead to less onchain data and a drop in transaction costs.

Even before these updates go live there’s been a noticeable uptick in the number of users joining Cardano, which has had a very slow start when compared with other blockchains.

Data from the Cardano Fans Stake Pool group indicates that about 60,000 have created Cardano wallets since May 1st. The network has been averaging about 1,500 new wallets a day, and ADA is up 20% against ETH in the last month. NFTs have also become quite popular on Cardano, and more than 5 million non-fungible tokens have been minted on the protocol.

Cardano wallet growth metrics - IMG Source

Cardano is aiming to be one of the world’s most popular and reliable smart contract platforms. The VASIL upgrade should help the platform become even more user-friendly as fees go down and dApps gain a new level of functionality.

For more technical information about VASIL, please check out this Twitter thread by the Cardano community member Sooraj. The hardfork is scheduled to go live on June 29th and we’re excited for this next chapter in Cardano’s ongoing growth and development.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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