Cardano Blockchain Gets Decentralized Governance: Here’s How It Works

Cardano, the decentralized and eco-friendly blockchain, is getting closer to its landmark upgrade dubbed ‘Chang’. This upgrade will add the element of ‘decentralized governance’ to the Cardano blockchain. Since its launch in 2017, Cardano has been striving to become the most preferred development platform for decentralized applications (dApps). Its native cryptocurrency, ADA, is currently ranked tenth on CoinMarketCap’s list of cryptocurrencies in terms of market capitalization, which stands at $14.7 billion (approximately Rs. 1,230 crore) as of Friday, July 26.

Cardona’s Chang Upgrade

A hard fork upgrade, Chang moves the Cardano blockchain closer to a community-run governance structure. Chaing, the name of this upgrade was chosen as a tribute to early Cardano evangelist Phil Chang who passed away in 2022. In his official blog post Regarding the Chaing upgrade, the Cardano team explained that “the Cardano community will be responsible for maintaining and shaping the blockchain network” once the upgrade is complete.

In the latest development, Node 9.1.0 — which is part of the upgrade — has been successfully deployed to the blockchain. This marks the final preparatory step needed for Cardano to transition to the Chang Hard Fork upgrade. The development was confirmed by Cardano founder Charles Hoskinson in a post on X.

Moving a blockchain to a fully decentralized governance system Reportedly increases efficiency, transparency and mobilization. In essence, decentralization of the network would give community members more control over the decision-making of this network, which otherwise could be impacted by government decisions.

“This upgrade will ensure transparency, inclusivity, and governance resilience within the Cardano ecosystem,” Cardano said. said.

Once the upgrade is completed and deployed to the blockchain, holders of Cardano’s native ADA tokens will be allowed to vote individually on any governance issue. They will also be allowed to assign their voting power to trusted delegated representatives (DReps).

The upgrade is divided into two phases: the first phase will complete and implement the fundamental governance functions, while the second phase will introduce community-driven governance and decision-making.

Cardano, often referred to as the ‘Ethereum Killer’, aims to fully decentralize the governance of the blockchain between October and December this year.

Cardano’s previous upgrade

In September 2022, Cardano underwent another network upgrade, which was named ‘Vasil’.

Vasil had Reportedly given that the Cardano blockchain offers the ability to quickly create blocks and improve the performance of its smart contracts.