Cardano Prepares for Phase 2 of Chang Hard Fork: Key Updates and Future Projections

Cardano, renowned for its innovative approach to blockchain technology, is gearing up for the second phase of its Chang Hard Fork. The development company behind Cardano, EMURGO, has shared five significant updates that aim to enhance the network's governance and functionality.

Cardano Chang Hard Fork Phase 2: What to Expect

The Chang Hard Fork, which went live on the mainnet a month ago, marked the beginning of Cardano’s Voltaire era. Phase 1 introduced the Interim Constitutional Committee (ICC) voting system, while Phase 2 is set to expand upon these foundations with several crucial features.

Key Updates in Phase 2

1. Delegate Representative (DRep) Voting: This eagerly awaited feature will allow Cardano holders to select representatives who can vote on their behalf. This is particularly beneficial for users who may lack the time or expertise to engage with every proposal, ensuring that they still have a voice in the governance process.
2. Stake Pool Operator (SPO) Voting: Another essential update is the introduction of SPO Voting, which empowers stake pool operators to actively participate in the network's governance. As validators of transactions, SPOs will have a direct influence on key decisions, enhancing the collaborative governance structure within Cardano.
3. Governing Actions: This update enables the Cardano community to propose and vote on significant system changes. It fosters a more democratic approach to governance, giving users a platform to shape the future of the network.
4. Treasury Withdrawals: With this feature, the community will gain access to the Treasury’s funds through collective voting. This change promotes financial independence and sustainable development, reducing reliance on external funding sources.
5. Expanded Constitutional Committee: This new governance body will oversee major decisions within the Cardano ecosystem, ensuring that the network remains on a path toward decentralization and self-sustainability.

While the exact timeline for Phase 2 implementation remains unclear, early 2025 is anticipated as a likely target. These updates represent a significant shift in how decisions are made within the network, aligning with Cardano’s vision of becoming a fully decentralized blockchain.

ADA Price and Market Projections

In tandem with these developments, ADA, Cardano's native cryptocurrency, has shown promising price movements, reflecting optimism in the broader cryptocurrency market. As of writing, ADA has increased by over 1% in the last 24 hours, trading at approximately $0.3549. Analysts believe that the upcoming Phase 2 of the Chang Hard Fork could catalyze further gains for ADA.

The Total Value Locked (TVL) in Cardano's ecosystem has been steadily rising, largely driven by the growing adoption of DeFi protocols and ongoing improvements to the network’s throughput and transaction efficiency. Market sentiment remains favorable, but analysts caution investors about the inherent volatility of cryptocurrency markets.

Cardano's Connection with Bitcoin

In a noteworthy development, Cardano has partnered with BitcoinOS to unlock $1.3 trillion in Bitcoin liquidity through a bridge integration. This collaboration aims to position Cardano as a smart contract layer for Bitcoin, enabling DeFi developers on Cardano to interact directly with the Bitcoin market.

This partnership was highlighted during the Cardano Summit 2024, showcasing Cardano’s ambition to lead in the blockchain ecosystem. The BOS Grail bridge, part of this initiative, facilitates seamless transactions between Bitcoin and Cardano, offering developers access to Bitcoin's liquidity—a significant enhancement for both ecosystems.

Conclusion

As Cardano approaches the next phase of its Chang Hard Fork, the community can look forward to transformative updates that enhance governance and expand its ecosystem. With ADA showing positive price momentum and a strategic partnership with Bitcoin, Cardano is positioning itself as a key player in the evolving blockchain landscape. While the path ahead is promising, investors should remain vigilant of market volatility and stay updated on developments from the Cardano team.

November 2024, Cryptoniteuae