Will The Upcoming Update To Cardano Impact The Price Of ADA?

The Cardano protocol will receive a new update in order to facilitate the development of smart contracts on the Cardano network. It will be a novel product prompted by demand in the community. The next update on Cardano already includes the CIP-0069 proposal, which will facilitate the development of decentralized applications on the network. The Cardano founder, Charles Hoskinson, believes that the update will not add any considerable delay to the Chang delivery, scheduled for the end of June. 

Chang is an upcoming hard fork that will introduce community governance on the Cardano protocol, thereby increasing the level of network decentralization. Every ADA token holder (Cardano’s native token) can participate in the update’s development and decision-making.

As stated by Hoskinson, it is critical to recognize unanticipated alterations that have the potential to be detrimental and introduce further hazards.

However, the team will continue to work tirelessly to successfully implement CIP-0069 in the Chang update. The developer forum on Cardano previously postponed this update since the team working on the network was struggling with the problem of mutual dependency, where two validator nodes are required to know the hash to operate correctly.

When designing a decentralized application, mutual dependency can be a big issue because it generally restricts the construction security and flexibility of the network protocol.

The delay in the update is due to a common issue that developers encounter when developing scripts on Cardano. The current design of scripts and tokens is the root cause of the issue.

On Cardano, the pieces of code, known as scripts, play a vital role in the functionality and security of ADA transactions. They are similar to a set of instructions, defining the conditions under which digital assets can be transferred or spent. 

The new proposal for CIP-0069 aims to eliminate this issue of mutual dependency between the scripts on the Cardano network. This script will not require us to know each other to function correctly. 

The update will allow the team to use a single validation script for various functions. Scripts, for instance, simplify the development of decentralized applications and enhance the security and trust of Cardano developers.

Furthermore, if the update is successful, it will strengthen the entire ecosystem of decentralized apps on the network and allow it to compete with other strong ecosystems like Ethereum, Solana, Polygon, and Binance Smart Chain.

Although Cardano will soon launch its update that will boost the ADA price in April, the network experienced poor performance due to a 50% correction by investors, according to CriptoNoticia. However, Santiment’s analysis shows ADA as an excellent investment opportunity compared to others based on its RSI (relative strength index). 

Last week, ADA’s RSI value was the lowest among other major cryptocurrencies, averaging around 32.4 and providing an excellent entry point for investors. 

According to Ali Martinez, a popular market analyst, the ADA price drop last month was a golden opportunity, and it seems to be ready for a bull run.

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