Cardano's developers hope that this latest upgrade will improve the efficiency of smart contracts, making Cardano cheaper and faster to use.
The Vasil hard fork is scheduled to release on the mainnet during the last week of July.
Reference Inputs allow access to transactional output without having to recreate it. Improving transaction throughput and increasing concurrency.
Reference scripts can be attached to outputs, using them to satisfy the validation requirements which would make transactions smaller, faster, and cheaper.
Developers may implement a hard fork for various reasons, including correcting critical security flaws discovered in older versions of the software, adding new functionality, or reversing transactions. One such example would be the hard fork on the Ethereum blockchain to reverse the hack on the Decentralized Autonomous Organization (DAO).
The majority of the miners in a blockchain need to agree on the new rules and what constitutes a valid block in the chain. The software can then be updated to reflect the new rules by the developers. This would create a new version of nodes that no longer accept the older version of the blockchain, creating a permanent break from the previous blockchain version, a fork. Those on the old chain will realize that their blockchain version is outdated or irrelevant and will quickly upgrade to the latest version.
When and what is the Vasil hard fork?
The Vasil hard fork is already up and running on Cardano's testnet and is scheduled to release on the mainnet during the last week of July.
The previous hard fork, the Alonzo hard fork, transformed Cardano into a platform that enables developers to create decentralized applications (dApps) and mint non-fungible tokens (NFTs).
Cardano's developers hope that this latest upgrade will improve the efficiency of smart contracts, making Cardano cheaper and faster to use. While this upgrade includes many Cardano Improvement Proposals, the key proposals are CIP 31, 32, and 33.
CIP 31: Reference Inputs
Currently, simply viewing data requires spending (computation), implying that more power is required. Furthermore, because the intent was only to look at the data, it is frequently necessary to recreate it.
Reference Inputs allow developers to access transactional output without having to recreate it. This means that developers do not need to spend when they want to look at the result of output. This improves transaction throughput while also increasing concurrency.
CIP 32: Inline Datums
This CIP enables data to be stored on-chain by allowing datums to be attached to outputs rather than datum hashes, which can be read by other applications easily. This also means that the entire datum is needed to complete the procedure because the datum's hash is tied to the output. However, developers can write scripts that directly reference the inputs.
With this move, Cardano wants to develop its ecosystem further and make it more comprehensive. Although there are drawbacks to holding excessive amounts of data in transactions, there are some circumstances in which this will be helpful.
CIP 33: Reference Scripts
Haskell is a coding language used to develop an App on Cardano, which will then be converted into Plutus for Cardano's virtual machine to read. Currently, Plutus scripts do not reside on the blockchain, but for every transaction made on the blockchain, the script is required to be uploaded. This causes more data to be carried in every block, resulting in slower performance and higher expense.
CIP 33 enables reference scripts to be attached to outputs, using it to satisfy the validation requirements without uploading the entire script. This would make transactions smaller, faster, and cheaper.
Will this long-awaited "Ethereum Killer" take the lead for Alt Coin?
Cardano is inching closer to Ethereum with every update, and many speculate that one day Cardano will replace Ethereum. With Cardano Vasil Hard Fork coming at the end of July and Ethereum 2.0 in August, this would prove to be a fierce competition between the two, and many would debate which blockchain would be better. What do you think? Let us know if Cardano would take the lead for Alt Coins.