Cardano is a blockchain platform that follows a structured development process divided into phases known as “eras,” named after influential poets, mathematicians, or computer scientists. Each era introduces new features through hard forks. These phases include:
– **Byron**: Launched Cardano’s foundational network, enabling ADA transactions.
– **Shelley**: Transitioned the network to decentralization with community-driven block production.
– **Goguen**: Introduced smart contracts and the capability to build decentralized applications.
– **Basho**: Focused on optimizing scalability and interoperability.
– **Voltaire**: Will introduce decentralized governance.
The Chang hard fork marks the first hard fork and sub-era of Voltaire, bringing some key improvements to the Cardano platform. This upgrade allows ADA holders to vote on protocol changes and governance actions, with the option to delegate their voting power to designated representatives, known as DReps. In addition to governance enhancements, the Chang hard fork brings improvements to Cardano’s smart contract platform through the introduction of PlutusV3.
The PlutusV3 update includes new cryptographic primitives such as BLS12-381 and Keccak-256, which improve the security and efficiency of operations like zero-knowledge proofs and digital signatures, making them more reliable and faster. Moreover, the upgrade adds bitwise primitives that allow developers to perform low-level data manipulations within smart contracts. These improvements make it easier for developers to create more complex and efficient decentralized applications on the Cardano platform.
Chang also refines how transaction fees are calculated for DApps by adjusting protocol parameters related to reference scripts. These reference scripts help reduce the size of transactions, lowering costs for users and increasing the network’s capacity to handle more transactions simultaneously. As a result, DApps can execute faster and more efficiently, benefiting both developers and users on the Cardano network.
To support the new governance mechanisms and smart contract improvements introduced by the Chang hard fork, node operators, especially stake pool operators, need to upgrade to version 9.1. For the hard fork to be successful, 70% of the network’s stake pool operators must upgrade their nodes to the new version. Although the new version was released on July 25, 35% of operators have already adopted it, while the rest are still transitioning from earlier versions.
Historically, ADA’s price has shown a pattern of downturn following major Cardano upgrades, except for the Allegra upgrade, which resulted in a significant price increase. Despite this anomaly skewing the overall average, the average price change after upgrades indicates a decline. Considering the current market conditions, it is challenging to predict the exact direction ADA’s price will take after the Chang upgrade. However, if historical trends persist, ADA’s price could potentially drop by around -15% in the month following the hard fork.
The Cardano Chang hard fork represents a significant step towards decentralization and governance on the Cardano blockchain. With improvements to the smart contract platform, transaction fee calculations, and network reliability, the upgrade aims to enhance the overall user experience and developer capabilities on the platform. While market speculation remains uncertain, the technical advancements introduced by the Chang hard fork pave the way for a more robust and efficient blockchain ecosystem on Cardano.
