Cardano, the proof-of-stake blockchain platform, is on the cusp of a transformative upgrade with the impending Chang hard fork. This significant milestone marks the commencement of the Voltaire era, a phase that will introduce on-chain governance to the network.
Cardano’s development has been meticulously structured into distinct phases or “eras,” each characterized by specific advancements. The Byron era laid the foundation for the network, followed by Shelley’s decentralization focus. Goguen brought smart contract capabilities, and Basho is dedicated to scaling and interoperability. Voltaire, the upcoming era, will empower ADA holders to directly influence the platform’s future through on-chain voting.
The Chang hard fork, the inaugural step in the Voltaire era, will introduce a governance system that allows ADA holders to participate in decision-making processes. Users can either exercise their voting rights directly or delegate them to trusted representatives known as DReps.
Beyond governance, Chang is set to enhance Cardano‘s smart contract capabilities through the introduction of PlutusV3. This upgrade brings advanced cryptographic primitives and bitwise operations, promising to bolster security, efficiency, and the overall complexity of DApps.
To accommodate the new governance mechanisms and smart contract improvements, node operators, particularly stake pool operators, must upgrade to version 9.1. A healthy adoption rate is crucial for the successful implementation of the hard fork. While the upgrade process is underway, with a significant portion of the network already running the new version, the final push to reach the 70% threshold is essential.
Also Read: Cardano (ADA) Soars 23%, Outpacing Bitcoin Cash (BCH) By 63%
Historically, Cardano’s price has exhibited a tendency to decline following major upgrades. However, it’s important to note that the Allegra hard fork, an outlier, significantly skewed the overall average. Excluding this anomaly reveals a more accurate picture of price performance post-upgrade.
Given the current market conditions, predicting ADA’s trajectory after the Chang hard fork is challenging. While the introduction of on-chain governance is a monumental step towards decentralization, its impact on the token’s price will depend on various factors, including overall market sentiment, adoption rates, and the development of the Cardano ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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