Charles Hoskinson, the founder of Cardano, identified an essential update that could significantly boost the network. Developer Andrew Westberg proposed methods to enhance protocol functionality.
Validation Zones Aim to Resolve UTXO Contention
One issue Cardano faces is UTXO contention, where transactions vie for the same outputs. CIP-118's validation zones could enhance transaction processing efficiency.
Cardano Protocol Improvements
The improvements proposed in CIP-118 address the structure of validation zones. Such changes would allow unconfirmed transactions to be handled more flexibly, maintaining DEX performance.
Community Opinion and ADA Price Impact
The Cardano protocol received a network update, positively reflecting on ADA's price, which rose by 4% over the last seven days. An analyst has predicted Cardano's value to reach $0.5 by the end of October.
The proposed updates are expected to positively impact the Cardano ecosystem, enhancing its capabilities and attracting new investors.