Cardano (ADA) is undergoing one of its biggest upgrades to date with a hard fork. This update, initially scheduled for July 1403, has not yet been implemented. However, there are signs that it will soon be implemented.
What is a hard fork?
In general, a hard fork is a radical change to the blockchain protocol that affects the validity of blocks and transactions on the decentralized network. These changes require that all (or the vast majority) nodes and verifiers be updated to the new version of the software.
More than 70% of the network’s nodes have adopted the new version 9.1.0, allowing for the update to be implemented soon. This is a fundamental update in the development of this blockchain that will help strengthen and harmonize it towards increasing decentralization and operational efficiency.
The hard fork will include significant technical improvements for Cardano
This upgrade will help strengthen the decentralization of the network and allow for more autonomous and resilient coordination between nodes. Unlike other upgrades that rely on central coordination, the fork will operate in a decentralized manner, ensuring that the network continues to operate more independently.
In the weeks leading up to the launch, node adoption of the new version has accelerated and Cardano has reached the 70% threshold required to move forward with the hard fork. However, the community is still waiting for some centralized services such as Coinbase and Binance exchanges to be updated to support the new features of this update.
One of the highlights of the hard fork is the proposed new codebook for Cardano developed by the Intersect organization. This law will establish a more decentralized governance model. The first phase of the hard fork will introduce a seven-member ad hoc committee, three of which will be elected by the community. This committee will play a key role in overseeing the transition to the new governance structure.
Phase Two, More Participation
In the second phase of the hard fork, representatives (DReps) are elected to act on behalf of Cardano holders in governance decisions. This move is intended to increase community participation in future decisions and make the Cardano token a more active government asset. Additionally, Cardano holders can submit proposals to the network treasury, which will be distributed based on votes. With an initial treasury balance of 1 billion Cardanos, this move is intended to allow for greater participation and a wider distribution of rewards within the community.
However, the transition to more participatory governance also comes with challenges. The risk of governance attacks by large organizations or whales is a concern, especially when it comes to distributing rewards and influencing network decisions.
Cardano (ADA) Market Performance
The fork is expected to help revive interest in Cardano (ADA) and strengthen Cardano’s position as a competitive blockchain network. The success of this upgrade will be crucial to the future of the digital currency, which has been criticized for its relatively slow growth compared to other blockchain networks.
By implementing technical improvements and introducing a new governance structure, the Cardano network will take a big step towards greater efficiency and decentralization, overcoming its limitations and facing criticism.
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