Numerous investors are particularly excited about the further development of Cardano. Because the cryptocurrency is one of the most popular, especially in German-speaking countries, and has an extremely large fan base. The next step is the massive increase in scalability through the Cardano Update Basho. When could the next big Cardano update come? In this article, we want to discuss the Cardano update basho and look at when the next major Cardano update could be launched.
What is Cardano?
Cardano (ADA) is a blockchain network that is considered one of the biggest competitors for Ethereum. Because Cardano combines security, decentralization and scalability and is one of the most versatile and, above all, a technically excellent blockchain network on the market. Cardano’s network token is the ADA, which can be used for staking and used to pay fees.
Cardano is characterized above all by its scientifically oriented further development of the blockchain. The Cardano Foundation uses scientists to further develop Cardano using evidence-based methods.
What problem does Cardano solve?
Cardano’s big competitor is Ethereum. The Ethereum blockchain is the most dominant blockchain in decentralized applications like DeFi and NFTs. But Ethereum has had bigger problems with low transaction speeds and high gas fees in recent years. Cardano wants to solve Ethereum’s problems with superior technology.
Cardano offers a more efficient blockchain as it uses the Proof-of-Stake consensus mechanism. Furthermore, Cardano is a decentralized network, offers smart contracts and is relatively easy to scale. Cardano thus solves the blockchain trilemma. This “trilemma” was addressed by Ethereum founder Vitalik Buterin and describes the fact that it is extremely difficult to combine the areas of scalability, decentralization, and security in a blockchain.
What phase is Cardano in at the moment?
The big unique selling point of Cardano is the long-term further development of the blockchain. The development is divided into 5 major phases:
- Byron : foundation of the blockchain
- Shelley : Decentralization
- Goguen : Smart Contracts
- Basho : Scalability (we’re currently here)
- Voltaire : Governance functions
In the last year 2021, Cardano completed the Goguen phase, the introduction of smart contracts . Next up is Basho, the evolution aimed at increasing scalability. At the moment (Q32022) Cardano is in between the two development phases. Entering the basho development phase comes next.
You can find more information about the in this article .
What does the Cardano Update Basho include?
Basho aims to build on the development of recent years and massively optimize the network in terms of speed and scalability. Cardano should become one of the fastest, if not the fastest blockchain on the market.
An important technical approach is the integration of sidechains, which are intended to split the transaction load, which arises primarily when executing smart contracts, which are intended to massively increase the speed of transactions. Other networks (Ethereum with shard chains, Polkadot with parachains) are already using similar approaches.
What is the Vasil hard fork as an update on Cardano?
Before the actual further development as part of Basho, there is a Vasil hard fork as an update on Cardano. At Vasil, several CIPs (Cardano Improvement Proposals) are implemented on the blockchain. Furthermore, the Layer 2 solution “Hydra” is to be introduced. This forms the basis for an increase in transaction speeds at Cardano.
Can Cardano replace Ethereum in the future?
With the new update in the form of Basho, Cardano should experience a massive boost in speed and scalability in the future. Cardano is comparatively weakest in this area. Other blockchains such as Solana or Avalanche offer greater scalability. But Cardano is already superior to Ethereum there.
Higher scalability should give Cardano another massive boost in the future and make the network even more attractive as a basis for dApps. So it is quite possible that Cardano will gain an ever larger market share in dApps in the future and may even replace Ethereum at the top in the next few years.
When will Cardano price recover?
Cardano (ADA) price has suffered badly in recent months due to the bear market, losing about 85% since its all-time high in September 2021.
But the reason for the losses is the bear market that drove prices of all cryptocurrencies down. The Cardano network and thus the number of Cardano addresses continues to grow. The further development continues to be excellent, regardless of the Cardano course.
The Cardano price should recover like the overall market in the next few months and could even see a price increase in the next few months due to advancements like the Vasil hard fork. In the third and fourth quarters of 2022 there is a chance for increases in ADA. However, a massive Cardano (ADA) bull run should not follow until the overall market turns bullish again.
How high will Cardano rise in 2022?
2022 has been a disappointing year so far for Cardano (ADA). As previously written, the ADA has lost over 80% of its value since its all-time high in September. But the drop now seems to have stabilized in June and July 2022. This means there is potential for price increases.
If the ADA returns to a bullish pattern, price increases towards the $1 mark are possible again by the end of 2022. At the moment (as of August 10, 2022) the ADA rate is 0.51 US dollars. The following developments speak for a slightly bullish development until the end of 2022:
- the stabilization of the market after losses in the bear market
- possible rebound effects
- Introducing Cardano Update: Vasil Hard Fork
- strong growth of the Cardano ecosystem
Is Cardano a Good Investment right now?
In the bear market, the prices of cryptocurrencies and Cardano (ADA) have fallen extremely. This offers investors a huge opportunity to invest cheaply in cryptocurrencies like Cardano. Cardano has massive growth potential and the blockchain should be able to realize its potential at the latest with the Basho update and extremely high scalability.
If you want to invest in Cardano (ADA), use the following crypto exchanges: