Massive update of Cordano blockchain

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Cardano ecosystem developer Tim Harrison shared the details of the upcoming blockchain upgrade. It will improve its compatibility and also allow the development of decentralized internetwork applications. Let’s study this case together with the AlsaBot team to know more!

Details of the upcoming update

The update is expected to directly affect the cryptographic primitives used in the blockchain. In addition, after the upgrade, the blockchain will support common digital signature standards on the Plutus smart contract platform, so it will be easier to create cross-chain projects. According to Harrsion, the existing algorithms are very different, so working with other blockchains, such as Bitcoin and Ethereum, is long, expensive and difficult. A lot of resources are wasted, while security risks increase. So in addition to supporting Cardano’s core digital signature algorithm, Ed25519, there will be built-in features to support ECDSA and Schmitt signatures. Notably, Cardano’s core algorithm is now also used in Monero (XMR) and XRP.

“IOG and Cardano Foundation engineers, SPOs, DApp developers and exchanges have been conducting intensive integration testing in a pilot environment since November 2022 with positive results. This technology is almost ready to be deployed on the main network,” said Harrsion.

The update will be rolled out to test networks on February 11, and to main networks three days later, on February 14. After that, developers of smart contracts on Plutus will have access to a more diverse set of signatures that provide the highest level of security.

News and forecasts

A week earlier, the developers introduced a tool for creating sidechains. The toolkit allows you to create specific sidechains with your own consensus algorithms based on the Plutus and Solidity programming languages. In addition, during testing, developers will be able to launch smart contracts, decentralized applications or sidechain-based tokens. In total, at the beginning of January, 16 million transactions were registered in Cardano, 62 decentralized applications operate on the basis of the network, and the number of unique accounts is almost 255,000. In addition, despite the crypto winter, since the beginning of the year, the total amount of funds placed in DeFi protocols on Cardano has grown by about 7% and now stands at about $50 million.

Many members of the crypto community believe that ADA has every chance of rising to $1.7. Investors attribute Cardano’s positive outlook for 2023 to the technical superiority of the project over its closest competitors. And although the network can stumble upon very different ADA forecasts for 2023, most still lean towards the much more conservative Cardano forecast for 2023, which implies a thaw in the crypto market, followed by the transition of ADA to positive dynamics after a prolonged fall. So, don’t forget to follow us on our Telegram channel and let’s us be your guide into most exciting news of crypto world!