<h2>What is Cardano Vasil Hard Fork?</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed335a4d7dc360a8e6023f659fee92.jpg" alt="Cardano Vasil Hard Fork" title="Cardano Vasil Hard Fork" width="600" height="333"></p><p dir="ltr">The <strong>Cardano Vasil Hard Fork</strong> is an upgrade to the <a href="https://www.builder.news/crypto-insights/cardano-blockchain" alt="cardano chain" title="Cardano - What is inside the 3rd generation blockchain protocol?" target="_blank" rel="" class="">Cardano blockchain</a>. Reportedly, the Vasil hard fork is expected to significantly improve the speed and scalability of Cardano. This will give Cardano a bigger step forward in competing with today's smart contract-enabled blockchains and dApps.</p><p dir="ltr">Previously, Cardano also had a hard fork called Alonzo Hard fork on September 12, 2021, marking a turning point that made it possible for Cardano to allow <a href="https://www.builder.news/crypto-insights/blockchains-backbone-to-call-smart-contracts-InrUS" alt="Blockchains backbone to call Smart contracts" title="Blockchains backbone to call smart contracts" target="_blank" rel="" class="">smart contracts</a> to run on its platform. And this upcoming hard fork (Vasil), will make these smart contracts faster, and more cost-effective.&nbsp;</p><p dir="ltr">Vasil will include more CIP techniques, support for Extended Unspent Transaction Outputs (UTXO), and connection with Hydra. <strong>Vasil Hard Fork Cardano</strong>'s proposed CIPs concentrate on enhancing the functionality and usability of the Plutus smart contract language.</p><p dir="ltr">Let's examine the <strong>Cardano Vasil Hard Fork</strong> update's features in more detail with <a href="https://www.builder.news/" alt="Builder.news website" title="Builder.news website" target="_blank" rel="" class="">Builder.news</a>.</p><h3>CIP 31: Reference Inputs</h3><p dir="ltr">More network-stored data will be accessible thanks to CIP 31, but without the churn that results from spending and rebuilding Unspent Transaction Outputs (UTXOs). As a result, it will considerably reduce Cardano's transaction costs.</p><h3>CIP 32: Inline Datums</h3><p dir="ltr">The CIP 32 theoretically improves the link between data and outcomes. Datums are data items with connections to outputs. Datums are implemented on the current Cardano blockchain by adding hashes to outputs; transactions require the attachment of the real datum. This implies that, in the current state, communication between the creator and spender is necessary in order to ascertain the actual value of the datum rather than the hash.</p><p dir="ltr">CIP 32 advises utilizing the original datum as the output rather than the datum's hash. As a result, unlike in the past, developers will be allowed to store their data on-chain, fostering decentralization.</p><h3>CIP 33: Reference Scripts</h3><p dir="ltr">The programming language used to create a Cardano app is Haskell. The code is then translated into Plutus, which Cardano's virtual machine can read, according to the Learn About Plutus page.</p><p dir="ltr">The absence of Plutus' scripts on the blockchain is currently a major issue for Cardano. Each block must contain more data, which slows the process and raises the cost. Every time you do a transaction, you are required to upload the script to the blockchain.</p><p dir="ltr">Thanks to CIP 33, developers would be able to add reference scripts to outputs. By making transactions more compact, it will lower transaction costs.</p><h3>CIP 40: Explicit Collateral Outputs</h3><p dir="ltr">The Cardano wallet user experience will be enhanced by the CIP 40. Currently, because to the UTXO model that Cardano employs, all wallets require collateral in order to interact with dApps.</p><p dir="ltr">As stated in the official How to write Plutus transactions guide, collateral is required in order to write and submit a Plutus transaction. It can shield users from losing their collateral as a result of a bug or an assault, despite the fact that many users do not use it.</p><p dir="ltr">With the CIP 40 upgrade, Cardano's (ADA) DDoS defense will be boosted, and users will be protected from potentially losing their ADA collateral.</p><h3>Extended Unspent Transaction Outputs (UTXO) Support</h3><p dir="ltr">The Cardano EUTXO model will provide a secure and adaptable environment for managing a variety of processes without encountering system outages. It is much simpler to verify transactions with this paradigm because each UTXO can be used up once and as a whole. Better privacy, scalability, and more straightforward transaction logic will be possible as a result.</p><h3>Hydra Integration</h3><p dir="ltr">By lowering latency and increasing throughput, or transactions per second, Hydra will try to scale the Cardano blockchain as a <a href="https://www.builder.news/crypto-insights/5-facts-about-layer-2" alt="5 facts about Layer 2" title="5 facts about Layer 2" target="_blank" rel="" class="">Layer-2</a> system (TPS). As the Cardano network grows and more DApps and smart contracts are added to the blockchain, it will aim to keep transaction fees low.</p><h2>Why does Vasil Hard Fork Cardano need to happen?</h2><p class="prosemirror-p-center"><img src="https://lh4.googleusercontent.com/-03g8yaO-h_TSWpHqzBumeAhFXoa6iA-XXs5lgW2ufVmA2Ec_OFoFtsxUkwaDkB2DKMvl4Qe3E6Pk3SQzW2Kf1tstBeGW-zJ1TXcOm3QgQvyUPRa0s7slLqENimOdAVoUoCJJPDNWIiwPGT8JrIQeGrPaixNtqJb7qHaGmQgd2G8JmUfHxNuJ3memw" alt="Why does Vasil Hard Fork Cardano need to happen?" title="Why does Vasil Hard Fork Cardano need to happen?" width="624" height="351"></p><p dir="ltr">The upgrade is a welcome sign for Cardano developers and investors. Despite being created almost 5 years ago, Cardano only integrates blockchains in September 2021. Since integrating smart contracts, Cardano has seen explosive growth in activity on the blockchain. Developers could rely on smart contracts to create decentralized applications like DEX, NFT, or other <a href="https://www.builder.news/crypto-insights/staking-yield-farming-and-liquidity-mining-pros-and-cons-comparison-y45Cd" alt="Staking, yield farming, and liquidity mining: Pros and cons comparison" title="Staking, yield farming, and liquidity mining: Pros and cons comparison" target="_blank" rel="" class="">Yield Farming</a> platforms. Cardano's ecosystem has become home to a number of decentralized applications that support a wide range of functions.</p><p dir="ltr">Now Cardano is able to run smart contracts. But congestion when it comes to traffic on its blockchain still poses an obstacle. As blockchains get busier and busier, speeds often slow down and fees go up. This is one of the main problems that Layer 1 blockchains have to face. Typically Ethereum, when used by many people, fees have increased significantly and the transaction speed has slowed down.</p><p dir="ltr">The <strong>ADA 2022 hard fork</strong> is Cardano's attempt to alleviate this bottleneck. To do this, Cardano will start using a solution called diffuse pipelining. This process will increase the transaction speed and when the speed is fast on the blockchain. Something developers and users alike appreciate. Along with the diffusion model, there will be a series of other upgrades that will increase the functionality of the smart contract. These upgrades will enable developers to build innovative and creative DeFi solutions within the Cardano ecosystem.</p><p dir="ltr">In short, to be able to compete with other <a href="https://www.builder.news/crypto-insights/guide-to-evaluate-layer-1-platforms-dhANJ" alt="An Ultimate Guide To Evaluate Layer 1 Platforms" title="An Ultimate Guide To Evaluate Layer 1 Platforms" target="_blank" rel="" class="">Layer 1 blockchains</a>, conducting <strong>Cardano Vasil Hard Fork</strong> is extremely important and urgent with Cardano.</p><h2>Cardano Vasil Hard Fork date</h2><p dir="ltr">The <strong>Vasil Hard Fork Cardano</strong> will launch on September 22, 2022, according to Cardano. About a week has passed since the <a href="https://www.builder.news/crypto-insights/the-merge-a-pivotal-event-for-ethereum" alt="The Merge: A pivotal event for Ethereum" title="The Merge: A pivotal event for Ethereum" target="_blank" rel="" class="">Ethereum Merge</a> shift, which is expected to be completed between September 10 and September 20. The <strong>Vasil Hard Fork Cardano</strong> will take place on September 22, 2022, according to Cardano co-founder Charles Hoskinson, despite the fact that "extensive testing" is still ongoing. Similar to "The Merge," <strong>Cardano's hard fork</strong> was postponed until June 29, 2022.</p><iframe width="550" height="400" src="data:text/html;charset=utf-8,%3Cblockquote%20class%3D%22twitter-tweet%22%3E%3Cp%20lang%3D%22en%22%20dir%3D%22ltr%22%3EVasil%20is%20Coming%20September%2022nd%2C%202022%20%3Ca%20href%3D%22https%3A//t.co/SKHf84nFwU%22%3Ehttps%3A//t.co/SKHf84nFwU%3C/a%3E%3C/p%3E%26mdash%3B%20Charles%20Hoskinson%20%28@IOHK_Charles%29%20%3Ca%20href%3D%22https%3A//twitter.com/IOHK_Charles/status/1565742403931508738%3Fref_src%3Dtwsrc%255Etfw%22%3ESeptember%202%2C%202022%3C/a%3E%3C/blockquote%3E%0A%3Cscript%20async%20src%3D%22https%3A//platform.twitter.com/widgets.js%22%20charset%3D%22utf-8%22%3E%3C/script%3E%0A"></iframe><h3>ADA price prediction after Vasil Hard Folk</h3><p>Cardano has experienced 3 major hard forks in the past, respectively: Shelley, Mary, Alonzo. As can be seen, the price of ADA was trending up before the upgrade took place. But as soon as the Hard Fork succeeds, their prices all drop (except for the Mary Fork).</p><p>It seems that Cardano's upgrades are only seen as a kind of "news" to exaggerate, pushing the price up. As for its hard fork itself, it is still not strong enough to resist the market trend.</p><p>While Cardano (ADA) has not rallied since its June low, it has begun to gain strength, likely due to the upcoming <strong>Cardano Vasil Hard Fork</strong>. The weekly technical indicators are tilted to the upside.</p><p>The <strong>Cardano Vasil Hard Fork date</strong> is expected to be activated on September 22. In anticipation of the hard fork, decentralized applications (dApps), exchanges, and validators continuously upgrade the system to ensure network compatibility. On September 9, the team released Daedalus v.5.0.0, the last mainnet before the hard fork.</p><p class="prosemirror-p-center"><img src="https://lh3.googleusercontent.com/QOjqSSTUOTrpl4FQjNNYcXudTh17IM4Gu-LVhu-D2KItybfPAOMxIRk5UvjS43iGc6iEa8pl4ZJoZ-J172fDF0qnHBKmgG8U82xEYhuksDJVudq5waIhB7GydlySj_5K7N6FYnXn2RxTDvZ_SNmJXTVNqvCnU8fRnpzM8CFfMxAdYlr_u9JZI9kYnA" alt="ADA coin price" title="ADA coin price" width="624" height="351"></p><p class="prosemirror-p-center"><em>ADA coin price (Source: TradingView)</em></p><p dir="ltr">The recent chart of ADA also shows the potential for future upside. The main reason for this is a potential double/triple bottom pattern that has been developing since June. The pattern has been associated with a bullish divergence in the weekly RSI (green line). Such divergences are often the catalyst for significant bullish movements. However, the weekly RSI remains below 50. If it moves above, it will confirm the divergence and will likely catalyze a very strong rally.</p><h2>Ethereum “The Merge” vs Cardano “Vasil Hard Fork”</h2><p class="prosemirror-p-center"><img src="https://lh4.googleusercontent.com/wg7vt_nkUpIGjoFKO0vTnwZ9uY3YFCucrNpfFTSEbp71037fKSXec-OM1yh4lADkXhNq4de18wQtvQvOAerc6AO-nzunVJu1ECXPlAjbLx3FVLU-EPizsbMFXtB9jTKvERFvNxgeeU487plY1fuBq26JRMtmwjDOJH0yWOaf9lsPHMGXoGfOf-XlJw" alt="Ethereum The Merge vs Cardano Vasil Hard Fork" title="Ethereum The Merge vs Cardano Vasil Hard Fork" width="624" height="328"></p><p dir="ltr">Both <a href="https://www.builder.news/crypto-insights/misconceptions-about-the-merge" alt="Unveil misconceptions about the Merge" title="Unveil misconceptions about the Merge" target="_blank" rel="" class="">The Merge</a> and <strong>Cardano Vasil Hard Fork</strong> are among the biggest changes in one blockchain community. Besides, the upgrade of Ethereum and Cardano will both solve some hot issues as follows:</p><h3>Solve the problem of energy consumption</h3><p dir="ltr">After the Merge, Ethereum will move to <a href="https://www.builder.news/crypto-insights/how-ethereum-proof-of-stake-affect-miners-swTcG" alt="How will Ethereum's Proof of Stake affect miners?" title="How will Ethereum's Proof of Stake affect miners?" target="_blank" rel="" class="">Proof of Stake</a>. Currently, Ethereum can only handle about 12 transactions per second right now. Under the current proof-of-work consensus, Ethereum uses ~112 TWh of energy per year. According to Vitalik Buterin, the network can handle 100,000 transactions per second, a significant increase from the current state. This is really a commendable thing if The Merge takes place successfully.</p><p dir="ltr">Cardano is already a proof-of-stake blockchain platform. The <strong>Cardano Vasil Hard Fork</strong> upgrade will bring increased network capacity and lower transaction costs. Thereby solving the problem of consuming large amounts of energy.</p><h3>Expand DeFi's use cases and increase utility</h3><p dir="ltr">Ethereum is a programmable blockchain that finds applications in many areas, including DeFi, smart contracts, and NFTs. Experts believe that 'The Merge' could act as an anchor to tow a floating DeFi ship. Ethereum's goal is to become the world's decentralized computing platform. Blockchain introduced smart contract functionality when it was launched in 2015.</p><p dir="ltr">On the other hand, <strong>Cardano's upcoming Vasil update</strong> will likely process a large number of transactions, improving the scalability of the network. Founder Charles Hoskinson has been quoted in the media as saying that a number of decentralized applications (dApps) are waiting for the <strong>Cardano Vasil Hard Fork</strong> to launch to benefit from pipelining.</p><h3>Scale to drive mass adoption</h3><p dir="ltr"><a href="https://www.builder.news/crypto-insights/top-6-web-30-applications-in-2022-n21YR" alt="Top 6 web 3.0 applications in 2022: The start of the future internet" title="Top 6 web 3.0 applications in 2022: The start of the future internet" target="_blank" rel="" class="">Web3 applications</a> and products are technologically complex and therefore inaccessible to most users. After the Consolidation, Ethereum plans to go through Surge, Verge, Purge, and Splurg - these will help scale and grow Ethereum. These are the upgrades needed to build a blockchain to increase utility.</p><p dir="ltr">The Vasil upgrade will also bring improvements to Plutus to enable developers to create more powerful and efficient blockchain-based applications.</p><p><em><strong>&gt;&gt;&gt; Find out:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/what-comes-next-after-the-merge" alt="What comes next after The Merge?" title="What comes next after The Merge?" target="_blank" rel="" class=""><em><strong>What comes next after The Merge?</strong></em></a></p><p dir="ltr"><strong>Bottom lines</strong></p><p dir="ltr">Once the <strong>Vasil update</strong> is set up and deployed, Hoskinson said Cardano will continue to grow. The founder also revealed that there will be a big Retrospective event on how Cardano implements things better in the near future. The <strong>Vasil hard-fork</strong> is also expected to bring Cardano closer to the ultimate goals of the ecosystem itself. Cardano is making significant improvements with this hard fork and the author expects it to be a serious competitor to Ethereum.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

A hard fork is a software update for the blockchain network that verifies erroneous blocks and transactions. A hard fork is rarely implemented by many blockchains, but Cardano (ADA) is a special blockchain that does one every year.

Vasil Hard Fork - Might Cardano surpass Ethereum with the new upgrade?