Tuesday, February 27, 2024

Cardano ‘Valentine’ Upgrade. Here’s How it Benefits ADA Token.

During the early hours of Wednesday in Asia, a live upgrade was implemented on the Cardano blockchain to enhance its security and interoperability features.

As reported by CoinDesk, a proposed upgrade called “Valentine” was approved by network validators earlier in February. This upgrade will improve the cross-chain functionality of the Cardano blockchain, particularly for decentralized finance (DeFi) applications being developed on the network.

According to reports, the upgrade is expected to introduce improved cryptographic features to Cardano and enhance the development of cross-chain decentralized applications (dapps) on Plutus, the smart contract platform of the Cardano blockchain.

In a tweet, a Cardano developer and code maintainer emphasized the importance of interoperability for the growth of blockchain technology. The developer stated that as more decentralized applications (dapps) are created on the Cardano blockchain, they mustn’t be limited to a single ecosystem but rather allow users to connect with various blockchains and access a broader range of services.

Software applications known as cross-chain bridges facilitate transactions between different blockchains.

If this feature were to be added to Cardano, it would enable developers to create applications that link Cardano with other blockchains, thereby granting users access to other blockchains and making it simpler to interact with the financial services provided by Cardano decentralized applications (dapps).

Decentralized applications (dapps) offer financial services, such as lending and borrowing, to users without intermediaries by relying on smart contracts. Users typically use the token of the dapp or are rewarded with that token.

As a result, the value of Cardano’s native ADA token could potentially increase due to the improved interoperability feature. As evidenced by an 8% price surge in the past 24 hours, which outperformed bitcoin and ether, the upgrade likely sparked buying pressure for the ADA token.

Since the beginning of January, the total value of tokens locked on dapps based on Cardano has surged by more than 100%, reaching over $110 million, indicating a high level of demand.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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