HomeCardanoCardano (ADA) Nears Transformational Upgrade – Here’s What It Means

Cardano (ADA) Nears Transformational Upgrade – Here’s What It Means

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  • Cardano’s Leios upgrade aims to enhance scalability, security, and decentralization.
  • ADA price trends suggest a potential breakout if key resistance levels are surpassed.

Cardano is poised for a milestone transformation with the upcoming Leios upgrade, which has been in the making for six years. The upgrade aims to address the blockchain trilemma by increasing scalability, security, and decentralization.

Cardano founder Charles Hoskinson confirmed that Leios was customized for the network and has not yet been utilized by other blockchains, although it is open-source.

Tim Harrison, Executive Vice President of Community & Ecosystem at Input Output, highlighted that Leios will allow Cardano to move beyond the traditional single-block approach.

Instead of handling blocks linearly, the system will introduce parallel block creation, endorsement, and ranking by stake pool operators (SPOs). This development can potentially increase transaction throughput exponentially without sacrificing network security.

The current Ouroboros Praos protocol has been at the heart of Cardano’s stability, but as blockchain use has grown, the necessity for greater efficiency has increasingly been felt.

With recent integrations such as Cardano-Midnight and Cardano-Bitcoin, the network’s transaction processing capacity of approximately 12 transactions per second (TPS) lags behind the likes of Solana, which operates at over 7,200 TPS.

Leios will bridge this gap by optimizing the utilization of network resources and enabling faster confirmation of transactions.

Leios Aims to Solve Cardano’s Scalability Limitations

Cardano’s architecture up until now has been constrained in handling greater volumes of transactions. The latest upgrade seeks to address three main issues: transaction diffusion, validation and availability, and transaction ordering.

They are necessary to ensure seamless network activities, particularly under congestion and in the face of malicious attacks like double-signing or network spamming.

Ouroboros Leios builds upon the existing Praos model but with enhancements to allow more effective block relay mechanisms. Currently, security requirements demand that blocks must be relayed within five seconds of a 20-second slot, and this limits block size as well as script execution.

This results in the underutilization of the network capacity. With Leios adopting parallel block processing, these bottlenecks are removed, and greater efficiency becomes achievable without compromising security.

The upgrade should be a critical step in making Cardano more competitive in the broader blockchain landscape. If well incorporated, Leios would rank Cardano as one of the most scalable networks without sacrificing its core values of decentralization and security.

ADA Eyes $0.84 as Bulls Push for Breakout

After a period of stagnation, Cardano’s ADA token has finally started gaining positive momentum, trading at $0.7319 with a 1.53% increase in the last 24 hours.

This resurgence has brought about controversy within the community, with some attributing the momentum to recent developments, including the Lace Wallet upgrade.

Technical indicators suggest ADA is now trading within a defined range. A breakout above $0.77 could trigger a strong uptrend, and a break below $0.69 could be an indication of further decline. Bollinger Bands on the 12-hour chart reveal a squeezing range, typically a precursor to heightened volatility.

Source: X

In order to keep the bullish trend intact, ADA must move above the 50-day simple moving average (SMA) of $0.755. If buyers can propel the price above this level, the bulls are likely to set their sights on $0.84, which should be strong resistance.

A successful break above $0.84 may open the doors for a push towards $1.02, which will be a key milestone for the asset.

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Mishal Ali
Mishal Ali
Mishal Ali is a passionate crypto journalist with over five years of experience in finance and cryptocurrency reporting. She has worked with renowned platforms like TronWeekly, delivering in-depth market insights and industry updates. She also runs personal blogs to explore these topics further. In her free time, Mishal loves watching movies and staying inspired through creative storytelling.
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