The Cardano Chain launched its much-anticipated Vasil upgrade on Thursday. However, it will take five more days for the developers to experience the upgrade’s capabilities. Cardano Foundation believes that the upgrade will boost the network performance. The name Vasil comes from Vasil St. Dabov, a Cardano supporter who unfortunately lost his life in 2021.
Charles Hoskinson, Cardano co-founder, considers Vasil upgrade as the most challenging update for its developers since the network launch in 2017. The upgrade could increase transaction speeds, minimize transaction fees, and boost decentralized application development, commonly known as dApps.
Vasil, Cardano’s hard fork, differs from the Ethereum hard fork that occurred last week during the merge. While the ETHPoW hard fork seeks to maintain the proof-of-Work version of the Ethereum, Vasil, on the other hand, will use Cardano’s hard fork combinatory technology to add new features without losing data from the previous version of the network.
Cardano Foundation CEO Explains Vasil Upgrade Benefits
In a statement, Frederik Gregaard, CEO of Cardano Foundation, explained some of the benefits to expect from Vasil. He stated that it would improve the network-smart contract capabilities by using Plutus V2, which makes the existing powerful-smart contract network more efficient.
Gregaard added that Vasil would minimize script execution costs and improve throughput. Meaning that once the Vasil upgrade is completed, presumably on 27th September 2022, then it will be possible for developers to write less code for Cardano Smart contracts, thus minimizing transaction fees as more of them can fit into each block on the network.
The Vasil upgrade is good news for DeFi projects on the Cardano network. For instance, Indigo Protocol has been operating on the Vasil testnet for the past few months. It lets users trade synthetic assets without owning them. The Indigo users have incurred reduced Cardano fees thanks to the minimized script overhead for reading data from the chain.
ADA Price Remains Bearish Despite Vasil Upgrade
ADA has been moving below a descending resistance line since September last year after it hit an all-time high of about $3.11. In May 2022, it reached a low of $0.40, but the price has increased slightly. However, it is yet to hit the descending resistance line. Until this happens, then the trend is still considered bearish.
