Share this article

What Cardano’s Highly Anticipated Vasil Hard Fork Will Bring

Vasil delivers an updated version of Cardano’s smart contract scripting language: Plutus v2.

Updated May 11, 2023, 4:54 p.m. Published Sep 20, 2022, 9:22 p.m.
jwp-player-placeholder

On Thursday, Sept. 22, the Cardano blockchain will carry out its much-anticipated Vasil hard fork, a backward-incompatible upgrade taking place on the main network that is intended to enrich smart contract capabilities, increase the chain’s throughput and reduce costs.

Plutus is Cardano’s native smart contract language. Vasil will deliver a second version of Cardano’s scripting language, Plutus version (v)2. As the foundational layer of Cardano, Plutus efficiently separates the code that drives smart contracts, which remains off-chain and runs on a user’s machine, from the on-chain validation of transactions. The new Plutus v2 features will become available one epoch after Thursday’s hard fork, expected to occur on Sept. 27.

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the The Protocol Newsletter today. See all newsletters

Read more: Blockchain Cardano’s Vasil Upgrade Confirmed for Sept. 22

Cardano is sometimes criticized because its smart contract capabilities are seen as lagging behind Ethereum and other layer one blockchains with their thriving decentralized finance (DeFi) communities. Unlike Ethereum, which uses an account-based model rather like a bank’s, Cardano is based on the “unspent transaction output” (UTXO) system associated with Bitcoin, a way of calculating what’s held in users’ wallets by keeping tabs on the change left over when coins are spent.

Vasil’s changes to the Cardano ledger will allow inputs and UTXOs to be used in scripting contracts without spending them. In other words, facilitating access to information stored on the blockchain without the need for spending and re-creating UTXOs, as was previously the case. A tweak to the way reference scripts are handled allows for a drastic reduction in the size of transactions that run them, where previously this caused processing delays.

Cardano extends Bitcoin’s accounting methodology to handle smart contracts – known as “extended unspent transaction outputs” (EUTXO) – designed to keep as much functionality off the blockchain as possible, a key feature both when it comes to scaling and in terms of reducing the scope for attacks and security breaches.

“Some see blockchains as fully programmable platforms, game engines, databases and whatnot. But they really aren’t. They’re ledgers, and they keep track of transactions,” said Cardano technical director Matthias Benkort. As such, keeping critical on-chain executions at a minimum is crucial for security and audit purposes, he added.

Other improvements post-Vasil (although, no hard fork is required for this) will include what’s known as “diffusion pipelining,” a way of increasing Cardano’s speed and scaling potential by compressing some of the idle time by propagating blocks ahead of their full validation, while still validating headers.

This scaling upgrade will streamline the process of sharing information about newly created blocks among network participants by ensuring that blocks can be propagated across the network well within five seconds after their creation, according to a blog post.

More For You

Pudgy Penguins: A New Blueprint for Tokenized Culture

Pudgy Title Image

Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.

What to know:

Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.

The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.

More For You

Deus X CEO Tim Grant: We aren't replacing finance; we're integrating it

Deus X CEO Tim Grant (Deus X)

The Deus X CEO discussed his journey into digital assets, the company's infrastructure-led growth strategy, and why his Consensus Hong Kong panel promises "real talk only."

What to know:

  • Tim Grant entered crypto in 2015 after early exposure to Ripple and Coinbase, drawn by blockchain’s ability to improve traditional finance rather than replace it.
  • Deus X combines investing and operating to build regulated digital finance infrastructure across payments, prime services, and institutional DeFi.
  • Grant will be speaking at Consensus Hong Kong in February.