Cardano announces major update in scalability and block size improvement, could this be bullish for ADA?

• The new update ahead of this week will improve the block size and the transaction throughput of the Cardano blockchain.
• This will attract a lot more DApps, DEXs, and NFTs to run efficiently on the platform.

On Tuesday, February 1, Ethereum rival Cardano announced yet another update for its blockchain network. Cardano’s development studio Input-Output Global shared the details of the upgrade. These updates cater to Cardano’s consensus structure and data process specifications.

Input Output Global said that the update will increase Cardano’s block size by 11 percent from 72 KB to 80KB. Also, the update will lead to every Cardano transaction using the increased “CPU,” i.e., the number of Plutus script memory units.

These memory units per transaction have been increased by a staggering 1.5 million, from the existing 12.5M to 14M. The enhancements will also provide additional resources to the Plutus scripts for improving the overall DApp experience.

Both these updates will go live on February 4 through Cardano’s epoch 319. Besides, they will also serve as the stepping stone in Cardano’s scaling requirements amid the growing demand. Ever since Cardano introduced smart contracts last September 2021, the platform demand has shot up significantly.

Related: Crypto investors need to pay close attention to Cardano in 2022, here’s why

Well, this has also led to higher traffic on Cardano’s on-chain applications ecosystem. Last week, as we reported, the Cardano network blockchain load touched a new all-time high. Thus, the number of blocks used on the Cardano blockchain reached a staggering 95 percent. This speaks volumes about the Cardano blockchains growing demand in the crypto ecosystem.

The Cardano team plans with the Update

After the implementation of this update, the Cardano team will monitor the network performance just as the consensus enters the Basho stage. This stage is also about decentralization as well as the scalability of transaction processing for DApps and wallets.

Furthermore, the Cardano team is also working on another major upgrade to its consensus layer dubbed “pipelining”. Also dubbed “diffusion pipelining”, this upgrade will blockchain to overlay transaction phases instead of processing them sequentially. This will significantly increase the speed of transaction execution as well as the transaction throughput of the Cardano blockchain.

These major developments coming to the platform will make Cardano (ADA) even more attractive for decentralized exchanges (DEXs), high-performing DApps, and other NFT marketplaces. with this update, Cardano will also be able to introduce a more sophisticated dApps architecture. As a result, the DApps will work faster and in a more efficient manner.

Cardano’s ADA has been one of the top-performing altcoins in the last year. The ADA price rallied all the way to $3 last September 2021. However, it has corrected by nearly 66 percent since and is currently trading around $1. This would be a good time for investors to add ADA to their portfolio for the long term.