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Cardano Improvement Proposals Might Strengthen ADA 2022 Fundamentals

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Mon, 01/03/2022 - 18:03
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Tomiwabold Olajide
Cardano improvement proposals, optimization agenda to boost ADA fundamentals in 2022
Cardano Improvement Proposals Might Strengthen ADA 2022 Fundamentals
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IOHK CEO Charles Hoskinson recently mentioned the Cardano Improvement Proposals, a set of community-governed network enhancements slated to go live in 2022. Nearly 22 proposals have been drafted, including human-readable information for assets issued on Cardano and a native web wallet for interacting with the DeFi protocol.

Cardano Improvement Proposals
Cardano Improvement Proposals, Source: Cardano

Dubbed CIP 14, the User-Facing Asset Fingerprint aims to come up with human-readable information for assets. Cardano's Mary era offers support for native assets, which are uniquely identified by their policy ID and asset name. Because assets are managed in a variety of user-facing features on desktop and hardware applications, Cardano believes it is necessary to create a short(er) and human-readable asset identifier that users would know and refer to when discussing assets.

Dubbed CIP 30, the Cardano dApp-Wallet Web Bridge aims to create a webpage-based communication bridge allowing webpages (i.e., dApps) to interface with Cardano wallets. There are various use cases for this such as NFT management.

Another, the proposed CIP 7 or Curve Pledge Benefit, aims to modify the current reward calculation equation, with the opportunity to increase incentives for pool operators.

Developments to strengthen ADA fundamentals

Charles Hoskinson disclosed in a whiteboard video on dApps and development that the Cardano network planned to spend the next six to nine months improving its decentralized applications (dApps) ecosystem.

Among these are Cardano Improvement Proposals (CIPs), to be implemented in June, e.g, read-only UTXO. He also spoke on the design considerations that went into building Cardano's extended UTXO (eUTXO) model, speaking at length on its expressiveness.

He hinted at an optimization plan in 2022 that aims to increase block size, improve node efficiency and network stack, as well as shore up Cardano's transaction throughput to 500-1000 TPS (transactions per second).

U.Today, earlier reported about a dozen Cardano projects earmarked for launch in 2022. The expectation continues to mount with the hopes that these developments might impact ADA fundamentals positively in 2022.

ADA, the native token of the network, was trading marginally up in the last 24 hours at $1.37 at press time.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.