The cryptocurrency industry is driven by technology. Every new development and innovation drives the sector forward and takes it to new heights, with improved performance, accessibility, and security.
Cardano is one of the fastest-growing blockchain platforms, with its native Ada
cryptocurrency among the industry’s most valuable. At the moment, Cardano investors
and industry experts are eagerly awaiting Voltaire, which is the next step on the
roadmap the company has outlined. What is Voltaire? How will it affect the Cardano
price and the future of the asset? Let’s find out.
What is Cardano?
Before we can discuss what Voltaire is and how it could affect Cardano and the wider crypto industry, first we need to go over what exactly Cardano is and how it works.
Cardano is a blockchain platform that was launched by Charles Hoskinson and Jeremy Wood in 2017. The two developers had previously worked with Ethereum but left to establish their own blockchain and crypto asset.
Cardano was one of the first blockchain networks to implement a consensus mechanism known as proof of stake (POS). A POS system is a more environmentally sound process, especially when compared to proof of work mechanisms used by platforms like Bitcoin. POS requires far less computational power and is less energy-intensive, making it a far more suitable approach for transaction verification in today’s climate-conscious world.
Cardano puts a particular focus on sustainability and scalability. It’s a versatile platform that can be used for a range of purposes, including financial services, record keeping, identity verification, and digital property management.
What makes Cardano unique is that, unlike other cryptocurrencies, it does not have a whitepaper. Instead, the developers published a roadmap detailing where they intend to take the asset in the future. This roadmap is divided into five sections, or eras, each of which is named after a famous poet or scientist. In order, the five eras of the Cardano roadmap are Byron, Shelley, Goguen, Basho, and Voltaire.
What is Voltaire?
According to Cardano, the Voltaire era will represent the asset’s blockchain finally becoming self-sufficient. Users of the network will be able to vote on and influence the future of the blockchain through the use of a voting system.
With Voltaire, Cardano hopes to achieve true decentralization. Putting full control of the network into the hands of the users themselves. Proposed changes, improvements, and upgrades to the blockchain will be put to users who have staked into the network who can then vote on whether or not they agree with the propositions.
Additionally, Voltaire will introduce something called a treasury system. This system will take a small percentage of all the network’s transaction fees, with the accumulated finances used to fund developments that have been voted for by the users.
With Voltaire, Cardano will achieve true independence, decentralization, and self-sustainability. It will not require any external assistance, financial or otherwise, with all decisions made and funded by the users of the network.
Voting systems are crucial for blockchain networks, as disagreements can see communities divided, literally and figuratively. The most famous example is the Bitcoin dispute over the data size of blocks, a disagreement that eventually led to a schism and the separation of the Bitcoin blockchain into Bitcoin and Bitcoin Cash.
The Voltaire era will also see a constitution established, a first for the crypto industry. This constitution will guarantee transparency and equal treatment for all users of the Cardano blockchain.
How Will This Affect the Cardano Price?
The price of the Cardano cryptocurrency, Ada, currently sits at $0.28. The asset has had a tumultuous 12 months, falling by a significant 41.54%. However, it has seen something of a rally in 2023, with growth of 13.69%. Its year-high came on 15 April when it reached $0.45. The price has fallen since then but looks to be steadily climbing again.
Will the Voltaire era of the Cardano roadmap help drive up the Ada price and see it rally even further? It remains to be seen, but investors will certainly hope so. However,
Voltaire doesn’t really introduce any major technological changes, rather it affects how the blockchain is governed and the level of influence held by users.
The crypto industry is obsessed with technology. New technological updates to blockchain platforms generate the most excitement, and it’s these changes that most often result in coin price spikes. Will investors display the same level of excitement and enthusiasm for a governance-focused upgrade like Voltaire? Perhaps not, and this is certainly a question that will be on investors’ minds as they closely follow Ada’s performance as the Voltaire upgrade rolls out.
Much like any other blockchain platform, Cardano is in a state of constant flux, with developers continually looking to push the technology forward and improve its performance and functionality. Voltaire will introduce a number of changes to how the network is governed and will push it further towards true decentralization. Whether or not this will be reflected in positive market performance, however, remains to be seen.