Blockchain
Cardano Set for Hard Fork That Will Soon Hand Over Control of $13 Billion Blockchain to ADA Holders – DL News
- Cardano hard fork could happen next week.
- For the hard fork the blockchain must reach a node density of 70%.
- After the hard fork, Cardano will transition to decentralized ownership.
Cardano is headed for a hard fork that will change the ownership structure of the $13 billion project.
And that could happen as early as mid-July.
Cardano founder Charles Hoskin on a live broadcast on Sunday said that the network’s updated node, dubbed node 9.0, needed for the hard fork, was ready for release and will be deployed next week, barring any last-minute issues.
The Chang hard fork, named after Phil Chang, an early Cardano enthusiast who passed away two years ago, will take place when the blockchain reaches a 70% node density, meaning at least 70% of Cardano validators have switched to the new version of nodes.
Hard forks are substantial changes made to a blockchain’s software, resulting in a new version that is not backwards compatible with previous versions.
Other major blockchains, such as Bitcoin and Ethereum, have undergone hard forks that have significantly changed the way they function. Ethereum’s latest hard fork It occurred two years ago and altered the consensus model of the network from Test of work TO Proof of participation.
In the case of Cardano, the Chang hard fork will change the ownership structure of the blockchain.
Cardano’s development since its inception in 2017 has been overseen by the Cardano Foundation, EMURGO, and Input Output Global. EMURGO is the official trading arm of Cardano, and Input Output Global is Hoskinson’s blockchain development company.
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The hard fork is designed to take ownership of the project away from these three entities and give it to the community, an ownership structure similar to a decentralized autonomous organization, or DAO, often used to administer DeFi protocols.
Therefore, ADA, Cardano’s native token, will become a governance token and holders will have the power to vote on changes to the blockchain.
Hoskinson reflected on the significance of the change in ownership structure, saying it is a demonstration of how much Cardano has matured over the years.
“It’s been almost 10 years and we’ve gone from a static, federated system to a dynamic, decentralized system with best-in-class staking to a really robust smart contract platform,” Hoskinson said. “It’s best-in-class for governance and the best strategy and plan ever.”
The Chang hard fork will be the fifth generation of its blockchain called Voltaire era. It comes after Basho, the current era, and Goguen, the previous one. Goguen and Basho introduced features such as scalability and smart contract capabilities.
As part of Voltaire’s shift to decentralized ownership, ADA token holders will also be able to delegate voting power and manage the project’s treasury, governance functions also common to DAOs.
Dared Avan Nomayo is our DeFi correspondent in Nigeria. He covers DeFi and technology. To share tips or story insights, contact him at dared@dlnews.com.