In the past, there have always been shifts in the development of Cardano. So also this time at the Vasil Hard Fork. In this article we will give you an overview of what the Vasil Hard Fork is, when it takes place and what effects investors and users could expect.
The most important information about the Cardano Vasil Hard Fork at a glance:
- The Vasil Hard Fork is designed to make the network even more scalable
- The date has not yet been fixed after several postponements
- Investors should be all the more careful with an ADA forecast
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What is the Cardano Vasil Hard Fork?
The upgrade, named after the Bulgarian mathematician Vasil Dabov, represents the largest undertaking to date in the development of the Cardano network. The Hard Fork is aimed at the implementation of numerous CIPs (Cardano Improvement Proposals).
The most important changes made by the Cardano Vasil Hard Fork at a glance
Basically, the Cardano Vasil Hard Fork is about the following CIPs:
- CIP-31 to provide more access to information stored on the network.
- CIP-32: Situations in which data can be easily attached to expenses should be able to be restored.
- CIP-33 aims to enable the attachment of reference scripts to outputs and allow them to be used to satisfy script requests through the validation process without requiring expenditure transactions for this.
- CIP-40 aims to introduce a brand new type of output transactions known as collateral outputs.
Another improvement is Diffusion Pipelining dar. This will ultimately make the Cardano network more scalable.
Why is scalability so important for Cardano?
A well-known problem in the world of cryptocurrencies is the blockchain trilemma. The problem describes the difficulty of creating a network that is secure, cheap and sufficiently decentralized.
As a rule, greater scalability is accompanied by a loss of decentralization and vice versa. Therefore, many blockchains are not so well suited for the masses without relying on layer 2 solutions.
For Cardano, too, it is important for mass adoption that the network becomes scalable in order to also represent a real alternative for centralized systems.
A vivid example that shows this is the comparison between the Bitcoin network and the payment service provider Visa.
The Bitcoin network only manages seven transactions per second, while Visa can manage up to 65,000 transactions per second, according to its own data. With the Lightning network, a Layer 2 solution, on the other hand, up to 1 million transactions per second are possible.
Date of the Cardano Vasil Hard Fork and Delays
The Vasil Hard Fork was originally scheduled to take place in June. However, the time has already been postponed several times.
After the upgrade did not take place in July, there is now no official date for the Vasil Hard Fork on Cardano.
The development team wants to make sure that the upgrade works as desired. Therefore, among other things, Cardano relies on peer reviews. These are independent expert opinions that scientifically examine the project as well as assess and evaluate it.
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As soon as the new date for the Vasil Hard Fork is officially confirmed, you will find it at this point of the article.
Effects and prognosis for the ADA course
Should you buy ADA in the course of the Cardano Vasil Hard Fork or not?
Important updates usually lead to a lot of hype for cryptocurrencies. A good example of this is the ADA price increase in the summer of last year, which came to an end on September 2, 2021.
On this day, Cardano (ADA) reached the previous all-time high of $ 3.10.
The reason for this was the Alonzo update on September 12. Thanks to the update, smart contracts on the Cardano blockchain are finally a reality. Previously, the blockchain competing with Ethereum had to do without this functionality.
Also with Ethereum, in the course of the merger, which is now scheduled to take place on September 15, 2022 and has also been postponed several times, it turns out that an upgrade in advance certainly favors a positive price development.
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Since the overall picture on the market is currently bearish despite the recent upswing, we do not assume that Cardano will really come close to the previous all-time high as a result of the update.
However, the Vasil Hard Fork should lead to the Cardano exchange rate developing better in the short to medium term than the native cryptocurrencies of competing platforms such as Solana, Avalanche or Polkadot.
However, we still advise investors to react with caution to updates.
On the one hand, it is never guaranteed that the upgrade will really have a positive impact on the network, and on the other hand, it is impossible to estimate in advance when the high point has been reached if you are speculating on profits in the short term.
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A sale shortly before the upgrade is therefore not entirely unlikely – according to the motto “buy the rumor, sell the news” (in German: buy the rumors, sell the news).
Our detailed Cardano course forecast, in which we focus on technical and fundamental data up to the year 2030, may help you to better assess the potential of Cardano.
Cardano Forecast: ADA development until 2022, 2025 and 2030
For our current Cardano forecast, we analyze the charts, the market momentum and the fundamental data. In addition, we are looking at the short-term, medium-term and long-term potential of Cardano for the years 2022, 2025 and 2030.
Therefore, we recommend investors to invest independently of hype and not to fall into FOMO (fear of missing out). If you are convinced by Cardano and are oriented towards the long term, a crypto savings plan should be the right solution for you.
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