What is Vasil Hard Fork?
Vasil hard fork will be implemented in June this year. It will go to be a major turning point for all the developers and Cardano itself. Cardano has scheduled the Vasil hard fork for the 2022 summer for significant growth in transaction throughput, volume, and liquidity.
Vasil hard fork is named after a Bulgarian mathematician Vasil Dabov who also happens to be a community member of the Cardano family. According to the Cardano CEO, Charles Hokinson, the Vasil hardfork will be a huge performance improver for Cardano.
A hard fork is a process in blockchain technology where all the protocols are changed or upgraded to new levels so that the previously invalid blocks and transactions become valid or vice versa. To complete the hard fork, all the nodes and validators present in the blockchain ecosystem should update to the latest version of software and protocols.
According to the Cardno research fellow Matthias Fitzi, the new hard fork will introduce diffusion pipelining. The diffusion pipelining solves the limitations persisting in the larger blocks which are hard to maintain by a ledger-consensus protocol. In 2022, it was planned to increase the block size limit to fit more transactions per block but the block size already expanded by 25%.
To battle the problem, diffusion pipelining will be introduced to improve the consensus layer and facilitate faster block preparation. Through diffusion pipelining, the blockchain will experience increased transaction throughput without any change in the consensus mechanism.
How Cardano will be benefited from Vasil Hardfork?
Vasil’s hard fork will optimize the Cardano ecosystem to harbor a wide variety of decentralized finance applications (Defi dApps), smart contracts, and decentralized exchange platforms (DEXs). Also, Hokinson explains several improvements including pipelining, UTXO on-disk storage, new Plutus CIPS, and Hydra.
Cardano’s IOG team is working relentlessly to offer some new products and features to its worldwide users such as lightweight wallets, connecting bridges to move assets from layer 1 chain to separate sidechains, and dApp stores. These sidechains contribute towards the formation of decentralized exchanges on which users will be allowed to exchange their ADAs for BTCs and the other way round. Also, such sidechains will consist of immutable smart contracts to make sure there is no possibility of hacks and scams.
During the planned Vasil hard fork, Cardano’s popular smart contract platform Plutus will also undergo significant advancements. Also shared by IOHK, Cardano’s improvement Proposals (CIPs) are CIP-31 (Reference Inputs), CIP-32 (Inline Datums), CIP-33 (Reference Scripts ), and CIP-40 (Collateral Outputs) will see a major improvement during the June hard fork event.
At press time, the native token ADA is running at $0.7923 with a 24-hour trading volume of USD 1,676,136,177. It ranks the 10th best cryptocurrency in the industry with a market capitalization of $26.7 billion, according to CoinmarketCap reports.
Furthermore, Cardano has reached a new milestone with 925 projects being built on Cardano. The ADA token holding wallets on Cardano has reached 3.6 million counts and still the number is increasing. According to the market analyst, after the Vasil hard fork, Cardano might break the $1 resistance in the market. Moreover, it is evaluated that it might rally to $3 in the future.