Cardanos Major Upgrade Postponed: Whats Going On with ADA?
Cardano, the blockchain project thats always been known for taking its time, recently hit a bit of a bump in the road with its much-anticipated Chang upgrade. Originally set to launch on August 27th, this major update has been postponed, leaving many in the crypto community wondering whats next for Cardano and its native token, ADA.
In this article, well break down what the Chang upgrade is all about, why its been delayed, and what this could mean for Cardanos future. Well also look at how ADA has been performing lately, especially compared to some of its competitors like Solana and Bitcoin.
Whats the Deal with the Chang Upgrade?
First off, the Chang upgrade isnt just your average software updateits a big deal. Its a hard fork, which means its a significant change that would typically result in a new blockchain. But Cardanos team, led by the ever-resourceful Charles Hoskinson, has figured out a way to pull this off without splitting the chain in two. Theyre using something called a hard fork combinator, which basically lets them combine the new and old systems so that Cardano stays as one blockchain.
This upgrade marks the start of Cardanos new Voltaire era, which is all about governance. Heres what you can expect from the Chang upgrade:
- On-Chain Voting: This is a big step toward decentralization. ADA holders will soon be able to propose updates, vote on them, and even delegate their voting power to someone they trust. This is a huge shift from the current setup, where most decisions are made by Input Output Global, the company behind Cardano. With this change, the community will have more control over the future of the network.
- Better Smart Contract Security: Cardano is stepping up its game with Plutus V3, which brings new cryptographic capabilities. This means better security for smart contracts, making the network more efficient at securing data and processing transactions. This should attract more developers to build on Cardano, which is something the network really needs right now.
- Improved Stake Pool Operations: The upgrade will also tweak how fees are calculated and improve the management of stake pool deposits. This should make things smoother and more efficient for everyone involved.
So, Why the Delay?
The Chang upgrade was supposed to go live on August 27th, but now its looking like we might see it around September 1stassuming there are no further delays. The good news is that this isnt because of any major issues. The delay is just to give exchanges and other applications a bit more time to get everything ready. In the world of crypto, delays like this are pretty common, so its not the end of the world.
Charles Hoskinson has assured everyone that the Cardano team is ready to go, and this extra time is just about making sure everything goes off without a hitch. But, as with anything in crypto, theres always a chance the launch could be pushed back again if something else comes up.
Hows Cardano Doing Anyway?
Lets be realCardano hasnt exactly been killing it in the market lately. ADA, the networks native token, is down about 40% year-to-date and a whopping 90% from its all-time high back in September 2021. Meanwhile, Solana is just a stones throw away from its all-time high, and Bitcoin has already hit new highs this cycle.
On top of that, Cardanos network activity has been pretty underwhelming. Its total value locked (TVL) peaked at $436 million in March but has since dropped to around $23 million. Thats a far cry from what youd expect for a network with such a large market cap. To put it in perspective, Solanas TVL is sitting at $5.5 billion, which is 20 times more than Cardanos.
Cardanos daily active addresses are just under 24,000, which isnt great when you compare it to Ethereums 350,000 or Trons 1.9 million. These numbers have led to some people calling Cardano a ghost chain, meaning there just arent that many people using it right now.
What Needs to Happen for Cardano to Succeed?
Despite all this, Cardano still has a lot going for it. Its got cutting-edge technology, big-name partnerships, and a strong leader in Charles Hoskinson. But the networks current metrics show that its struggling to keep up with its competitors.
For Cardano to really take off, it needs to develop a stronger network effect and get more people excited about using it. This means delivering on the types of applications and services that users actually wantwhether thats DeFi, gaming, or even meme coins. Other networks like Solana and Avalanche have managed to capture user interest by giving people what theyre looking for, and Cardano will need to do the same if it wants to stay in the game.
Wrapping It Up: Will the Chang Upgrade Make a Difference?
The Chang upgrade is definitely a significant milestone for Cardano, but it might not be the silver bullet that solves all its problems. While the technical improvements are impressive, what Cardano really needs is more users and developers to jump on board.
If Cardano can use this upgrade to build a more active and engaged community, it could start to live up to the expectations that have been placed on it since its launch in 2017. But without a stronger network effect and more excitement from users, the upgrade alone might not be enough to turn things around.
So, if youre holding ADA, its important to stay informed and keep a realistic view of the challenges ahead. The Chang upgrade could be a step in the right direction, but its just one part of the bigger picture that Cardano needs to figure out.tinues to grow and mature.er certain, but by staying informed and adaptable, we can navigate these challenges and position ourselves for success in the long run.
Hopefully, you have enjoyed todays article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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