DeFi
Cardano Prepares for Hard Fork That Will Soon Give Control of $13 Billion Blockchain to ADA Holders – DL News
- Cardano hard fork could happen next week.
- The blockchain must reach a node density of 70% for the hard fork.
- Cardano will move to decentralized ownership after the hard fork.
Cardano is about to undergo 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 sunday livestream said the network’s upgraded node, called node 9.0, which is needed for the hard fork, is 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 occur once the blockchain reaches 70% node density ― when at least 70% of Cardano validators upgrade to the new node version.
Hard forks are major changes to a blockchain’s software that result 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 significantly changed how they operate. Ethereum’s Latest Hard Fork happened two years ago and changed the network’s consensus model Proof of work has Proof of Stake.
In Cardano’s case, Chang’s hard fork will change the ownership structure of the blockchain.
ADA token holders to have governance rights on Cardano after hard fork
Cardano’s development since its inception in 2017 has been overseen by the Cardano Foundation, EMURGO, and Input Output Global. EMURGO is Cardano’s official commercial arm, and Input Output Global is Hoskinson’s blockchain development company.
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The hard fork is designed to remove ownership of the project from these three entities and place it in the hands of the community, an ownership structure similar to a decentralized autonomous organization, or DAO, which is often used to administer DeFi protocols.
Thus, 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 was a testament to Cardano’s maturity over the years.
“It’s been almost 10 years since we moved from a static, federated system to a dynamic, decentralized system with best-in-class staking and a really solid smart contract platform,” Hoskinson said. “It’s best-in-class in governance and the best strategy and plan overall.”
Chang’s hard fork will be the fifth generation of its blockchain called the 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 pivot to decentralized ownership, ADA token holders will also be able to delegate voting power and manage the project’s treasury ― governance functions that are also common among DAOs.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or information on articles, please contact him at osato@dlnews.com.