How Peer To Peer Makes Cardano Blockchain Special
The most anticipated development is the decentralization of the networking layer or Peer to Peer networking. Update following the Vasil hard fork event. The P2P update aims to significantly increase Cardano’s decentralization and resilience over its current state. The 3,198 stake pools that make up the core of the Cardano network are managed by the operators (SPOs) who oversee the distributed nodes that keep the network operational. Stake pools are now in charge of managing the blockchain, thanks to Cardano’s decentralization. It should go without saying that a decentralized and dispersed network requires dependable communication between these nodes. Reliable and efficient connections between all the distributed nodes and ensuring the network is resilient to failure are key components. With the introduction of the Peer to peer testnet in December 2021, Cardano began a significant project to help its continued push toward complete decentralization. P2P communication aims to enhance information transfer between nodes. Until Cardano fully converts to a P2P network, the topology updater will continue to act as a workaround. Once all P2P nodes are operational, the Cardano network will be entirely decentralized, eliminating the need for centralized services like the topology updater.
What’s left for the Peer to peer networking update for Cardano
As part of a Twitter chain, “According to the most recent information from InputOutputHK, the P2P development is feature complete, and all necessary testing has been carried out,” emphasizes. Its execution and design are being reviewed. Peer to peer node deployment will take place gradually.” In other news, Charles Hoskinson, the founder of Cardano, responds to a critic about the network’s credentials: “150 papers, 3 million community members in more than 100 countries, 1,000+ projects based more brand interaction on Cardano than IBM and BMW, listed on 200 markets, consistently operational since launch, adopted by nations and Fortune 500 companies.”
What Makes Cardano Special?
Cardano has been knocked down the crypto top ten by market cap, with LUNA and XRP taking their place. However, the price of ADA has been climbing in recent months, and it may recapture prior highs as the market mood shifts optimistic. Cardano (ADA) is trading at $1.20 at writing, up 30% in the last month. As a result, ADA is the best-performing cryptocurrency in market capitalization. The price of ADA has started rising after a multi-month decline that saw it go from an all-time high of over $3 to less than $1 in 2022. Several causes are fueling the present rise.
According to IOG, Cardano’s principal developer, this involves the full implementation of smart contract capabilities, an increase in developer activity recorded by the network, and the enhancement of Cardano to make it more decentralized and scalable. Above all, the variables above have resulted in an ecosystem boom. Hundreds of projects are being developed on Cardano, which might re-ignite the Ethereum Killer narrative.
Some of these projects were recently highlighted by IOG. The firm stated on its official Twitter account:
🌳 The #Cardano ecosystem is growing by leaps and bounds, with new players entering the ecosystem every day. Let’s start this week with a recap of the latest news & announcements from projects #BuildingOnCardano and contributing to its growth.
— Input Output (@InputOutputHK) March 28, 2022
Milkomeda is one of these efforts. This project, created as a scaling option for Cardano, will combine the network with Ethereum Virtual Machines (EVM) capabilities. On March 28, the Cardano project was unveiled. This network will be able to interface with other blockchains in the future, like Avalanche and Algorand.
IOG also announced Ergo, a decentralized exchange that will launch on April 4 on the Cardano testnet. With the upcoming debut of Singularity’s converter bridge solution and real asset tokenization with the Indigo Protocol, this network will see even more practical applications.
Cardano’s growth has exceeded expectations, and institutions are clamoring for more ADA.
Charles Hoskinson, the project’s creator, praised the project’s progress. Hoskinson forecasted a surge in the number of projects built on the network and the number of assets issued on Cardano in 2021. He stated that “millions” of both have exceeded his expectations on Twitter.
As the network prepares for another Hard Fork Combinator (HFC) event in the coming months, this number appears to rise. Hoskinson believes “Vasil” will cause another increase in the network activity, with a potential total value locked in (TVL).
As a result, ADA’s price may be able to maintain its rally in the medium to long run. Institutional investors may have picked up on this future trend, according to data from IntoTheBlock, as the number of addresses exchanging huge sums in ADA continues to rise.