Cryptocurrency

Cardano Vasil Hard Fork Delayed Again! How will this Delay Impact ADA Price?

WHAT IS A BLOCKCHAIN HARD FORK?

Before going into hard forks and soft forks, first let us understand what forks mean in the blockchain world. So typically a blockchain runs on the consensus of a large group of people in the network, and in a situation where they agree on a few common things. But sometimes a situation arises where there is some kind of disagreement leading to the formation of two parties, which lead to the formation of alternate chains.

So by definition, a soft fork is a change to the software protocol where only previously valid transaction blocks are made invalid. Because old nodes will recognise the new blocks as valid, a soft fork is backwards-compatible.

In contrast, a hard fork, is a radical change to a network’s protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software. Adding a new rule to the code essentially creates a fork in the blockchain: one path follows the new, upgraded blockchain, and the other path continues along the old path.

Some of the most famous examples of hard forks in the past are Bitcoin/Bitcoin Cash, Ethereum/Ethereum Classic amongst a few others.

WHAT IS CARDANO?

According to definitions, Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It is popularly referred to as a third generation blockchain, succeeding Bitcoin (first generation) and Ethereum (second generation).

Let’s understand some context. Bitcoin, the first crypto to be ever born out of the 2008 Financial Crisis by the pseudonymous Satoshi Nakamoto was built with only one thing is mind – pure decentralisation of a network with security at the heart of it. And Bitcoin truly encompasses that. However, a couple of years later, Vitalik Buterin comes in with Ethereum – a blockchain with smart contract capabilities – basically programmable value over a blockchain network. However, while Ethereum solved one aspect of Bitcoin, it continued with the proof-of-work system of consensus – which at scale was extremely energy dependent and not easily scalable. That’s where Cardano came in.

Cardano was designed to be the evolution to the Ethereum idea – a blockchain that is more flexible, sustainable and scalable to run smart contracts and which will provide the platform for a wide range of decentralised finance apps, new crypto tokens and much much more.

Additional Read: How to Invest in Cardano?

CARDANO’S VASIL HARD FORK Explained

Cardano’s Vasil Hard Fork is the next step in its plan to improve upon the speed and scalability of the network. This essentially brings the project one more step closer to dethroning the largest smart contract and DeFi platform out there – Ethereum. With this latest upgrade, Cardano’s developers hope to improve the efficiency of smart contracts to make Cardano cheaper and faster to use.

Why is this such a momentous occasion? Well, because it will be tackling two of the biggest issues that a blockchain network faces when it become popular. Network congestion and fees. Ethereum is already having a tough time with it, with gas fees skyrocketing beyond all acceptable levels and that is what Cardano is trying to solve and get ahead of.

Cardano’s smart contract capabilities launch saw intense traffic coming on the chain with a huge number of developers wanting to build DeFi protocols on the chain. As blockchains get busier, speeds typically slow down and fees increase. So the Vasil Hard Fork is expected to solve this two pronged issue at once.

Now, on 3 July, 2022 – IOHK, the software engineering and technology company behind the Cardano project announced that Cardano’s testate was successfully hard forked, taking the first definitive step towards the success of the Vasil Hard Fork.

 

CARDANO VASIL UPGRADE WEEKLY DEVELOPMENT REPORT

From the report published by essentialcardano.io, we will look at all the things that have happened in the Cardano ecosystem over the week. One of the biggest that happened over this week is that the Cardano testnet was successfully hard forked to provide the Vasil functionalities. This testnet serves as sandbox where developers can develop dApps and DeFi protocols for the future of Cardano on this platform before launching it on the mainnet.

CARDANO VASIL SUCCESSFULLY LAUNCHED ON TESTNET

On 3 July, 2022 – IOHK, the software engineering and technology company behind the Cardano project announced that Cardano’s testate was successfully hard forked, taking the first definitive step towards the success of the Vasil Hard Fork.

Read more on Vasil Fork Update on Testnet 

DEADALUS WALLET RELEASE SUPPORTS VASIL HARD FORK

Over the past week, the Deadalus team also began preparing for the next Deadalus Wallet release that will support the Vasil functionality. They also worked on the connection between Lace UI components and the Lace desktop version investigating ways of effective code sharing between Lace’s browser and desktop applications.

WHAT’S NEW?

Well, for one – the actual Vasil Hard Fork on the Cardano Network has been delayed once again. It was supposed to have been implemented by the last week of July but that isn’t happening anymore.  The Cardano community has been waiting for the Vasil network upgrade for several months now. Now this time again, the upgrade has been postponed by the developers of the network for ‘further testing’.

The delay is part of an effort to give more legroom to the engineers and developers at Cardano to conduct exhaustive testing of the hard fork before it’s released onto the mainnet. Developers work with multiple variables in a sandbox environment to make sure everything is scotfree by the time they actually release it for the public. It is also to ensure that the upgrades are reliable and secure for public use.

Will the Cardano’s Vasil Upgrade Delay Impact ADA Price?

To answer the question, whether the Vasil Hard Fork will have any effect on the price, we can safely say that it would. ADA has seen a significant rise in price from the middle of July, in anticipation of the Vasil Hard Fork – and those in the community are quite excited about it. But it is yet to be seen when the hard fork would actually be implemented on the network.

CARDANO(ADA) TECHNICAL  ANALYSIS

ADA/USD | Source: Tradingview

From a technical standpoint, Cardano ADA is still very weak. It touched its all-time-high back in September 2021 and since then hasn’t been able to show any signs of recovery on the charts yet. It briefly saw a slight rally towards the end of March that pushed it above the trendline resistance (marked in orange). 

Of late, amid the broader market recovery, ADA has managed to secure some gains too. It managed to gain only 6% in the past week, as on 29 July, 2022. Even from its bottoms, it has only managed to recover around 25%. Considering how much some of the other major altcoins have gained in the same timeframe, it can be agreed that it hasn’t recovered too much. Its Relative Strength Index is still at a favourable position to support a further upward move.

Additional Read: ADA Price Prediction 

HOW HAS THE CARDANO NETWORK BEEN AFFECTED BY THE REPEATED DELAYS?

Well, the continuous delays has caused some amount of desperation and frustration in the community who have been eagerly waiting for this to happen. It is clearly evident from the social dominance study below – how the poor sentiments have been dragging Twitter dominance and trading volumes both have been going down over the past few weeks.

HOW & WHERE TO INVEST IN CARDANO (ADA)

You will find the best deals along with attractive benefits and in-App features here on CoinDCX. All you need to do is, download the CoinDCX crypto investment App on your smartphone and register yourself by entering the required data. Once your profile is verified, fund your wallet and buy Cardano (ADA)!

FAQS

What is the Release Date of the Cardano Vasil Hard Fork Upgrade?

The release date, which had been previously decided to be in the last week of July has now been postponed without further notice. It could possibly be in the next couple of weeks but nothing can be said for sure as developers want to make sure that the hard fork is functioning accurately before releasing it to the public.

What is Cardano Vasil Hard Fork?

It is a part of an effort to bring improvements to the smart contract capabilities of the Cardano network. Also being a part of the Basho phase of the Cardano Roadmap - which focuses on scaling and network & ledger optimisation and will bring multiple improvements to the ledger.


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