What changed for Cardano in 2024: hard fork, decentralization, and ADA growth
Chang Hard Fork and the Conway era
Chang Hard Fork took place in August 2024, marking Cardano's transition into the Conway era. A Hard Fork is a major update or change to a blockchain's program code that makes it incompatible with previous versions.
Chang Hard Fork was named after John Chang, one of the pioneers of computing and blockchain research. This hard fork was the last in a series of updates that ended the Voltaire era and ushered in the Conway Era, which focuses on decentralized governance and the long-term sustainability of the network.
The Conway Era is named after John Conway, a British mathematician and creator of Game of Life. The name symbolizes Cardano's transition to a more complex and self-organizing network.
Significant improvements were implemented during the Chang Hard Fork that strengthened the Cardano network. The Ouroboros algorithm received updates to improve security and stability, allowing the network to handle large amounts of data better. Preparations have also begun for the introduction of UTXO-HD technology, which can optimize the use of resources on nodes, making the network more efficient.
New features for smart contracts in Plutus, including support for arrays and data mapping, made the platform more developer-friendly. The improvements also expanded Cardano's compatibility with decentralized application development tools, contributing to the growth of the DApps ecosystem.
The Hydra protocol has also been improved to increase scalability. Its integration has optimized the performance of the multi-layer framework, enabling instant transactions and improving the efficiency of Layer-2 solutions.
Special attention was paid to preparing for decentralized governance. Updates to the voting mechanisms created the basis for developing the Cardano constitution, which will be an essential step towards full self-governance of the network.
Incidentally, several cryptocurrencies and blockchain platforms are developing or have already implemented the concept of "constitutions" to govern their networks. Such constitutions are a set of rules and principles that define ecosystem participants' decision-making processes and interactions. Here are some of the most well-known projects:
The Cardano community has actively supported Chang Hard Fork. In the weeks following the update activation, there was an increase in the number of nodes upgraded to the latest version and an increase in the number of transactions and new DApps using the improved Plutus features. Active participation from validators and users helped ensure a smooth transition to the new era.
ADA price predictions
The above changes have significantly strengthened Cardano's position in the cryptocurrency ecosystem. Analysts and experts noted the positive dynamics of the project, predicting the ADA token value to grow to $3 by the end of the year or early 2025. This prediction was based on the following factors:
- Chang Hard Fork update and improvements in Plutus and Hydra integration made the network more powerful and attractive for developers and users.
- The increase in decentralized applications on the Cardano network stimulated interest in the platform and the ADA token.
- Preparations for the implementation of the Cardano constitution attracted the attention of investors interested in the long-term sustainability of the network.
However, experts emphasized that the token's value growth depends on internal technical factors and Cardano's ability to compete with major players such as Ethereum, Solana, and Polkadot.
Cardano will need to strengthen its market position by attracting strategic partners to achieve its stated potential:
- Working with large corporations that could use Cardano to implement their blockchain solutions.
- Applying Cardano technology to government initiatives, such as digital identity systems, as previously implemented in Ethiopia.
Ethereum, for example, is actively developing its ecosystem through scalable solutions (Layer-2) and cooperation with companies such as Visa. Conversely, Solana focuses on high bandwidth and low fees, which attracts DeFi and NFT developers. It's essential for Cardano to not only cater to these trends but also to offer unique solutions.
Suppose the network can effectively realize its ambitious plans. In that case, its prospects look extremely promising: 2024 is the beginning of a new chapter in Cardano's history, which could define the entire cryptocurrency industry.