Important fast food
- September will be a big month for blockchain upgrades, with Ethereum and Cardano undergoing their most important upgrades to date.
- The Vasil hard fork is highly anticipated among Cardano faithful, but historically the Tier 1 has lagged behind its competitors.
- Vasil may be the bullish catalyst Cardano needs, but will that be enough to turn Hoskinson’s darling into a true contender?
Enthusiasm for the Ethereum consolidation is at its peak, but it is not the only significant upgrade that occurred in September.
Fasil on the horizon
Over the past few weeks, one story has dominated the headlines – the integration of Ethereum into Proof of Stake. The upgrade implements two big bullish catalysts – a 90% reduction in token issuance and a 99% reduction in energy usage – so it’s no wonder that consolidation mania reaches its climax in just one week for the ships to be upgraded.
But Ethereum isn’t the only blockchain getting ready for the big September. Input Output Hong Kong (IOHK), the company behind the Cardano blockchain, recently confirmed that the network will undergo the long-awaited Vasil Solid Network on September 22.
Along the same lines as the Ethereum merger, IOHK chose Vasil as the “most significant” Cardano upgrade to date. Vasil will significantly improve the functionality of the blockchain by increasing network capacity, lowering transaction costs, and improving Cardano’s native smart contract language, Plutus. These upgrades should help increase performance for end users while enabling developers to build more powerful and efficient applications.
It should come as no surprise that big improvements like this are seen as an upward tailwind. The year 2022 has been unforgiving, with high Federal interest rates and general macroeconomic turmoil weighing on cryptocurrencies. If Vasil is successful, it could give Cardano a much-needed boost to see it through the crypto winter.
But it’s also worth bearing in mind that Vasil may not be the silver lining that Cardano fans were hoping for. Last year, the previous blockchain hard fork, Alonzo, introduced smart contract functionality, and finally put Cardano on a par with other Layer 1 networks like Ethereum and Solana. While Cardano’s ADA rebounded strongly ahead of the update, the technical difficulties surrounding unused transaction output became a major hurdle for app developers, and enthusiasm slowly faded.
However, Cardano is best known for her dedicated community leader and charismatic leader Charles Hoskinson. Despite its belated development, Cardano believers have continued to hold on over time, and there is no reason to believe that blockchain proponents will be jumping on board any time soon. However, the clock is ticking for older projects like Cardano. The first layer space is becoming increasingly saturated, and newer chains such as Aptos and Sui that use more accessible programming languages are likely to provide stiff competition in the future.
Disclosure: At the time of writing, the author of this article owns ETH, BTC, and many other cryptocurrencies. The information in this paragraph is for educational purposes only and should not be considered investment advice.