Cardano is set to unveil a groundbreaking upgrade that has the potential to revolutionize the developer experience on the blockchain platform. This upgrade, which focuses on message signing, aims to enhance Cardano’s efficiency and usefulness, positioning it as a strong competitor to Ethereum.
Unlike Ethereum, which relies on a Merkle tree for data broadcasting, Cardano’s UTXO-based design enables faster execution of scripts for signing messages. This improvement is expected to bring significant benefits to Cardano’s Layer 2 solutions and Decentralized Applications (dApps), offering speed, efficiency, and enhanced security.
The introduction of message signing on Cardano was first introduced in 2020 through CIP-7. Sebastien Guillemot, a prominent Cardano contributor and co-founder of PaimaStudios, emphasized the usefulness of message signing in establishing address ownership without on-chain transactions. This feature opens up a range of possibilities, allowing users to utilize Cardano’s L2 wallets from L1 accounts, such as Milkomeda, Catalyst, and Mithril, enabling active participation in governance processes and voting on proposals.
Additionally, this upgrade is expected to simplify the usage of indexers compared to previous methods. Guillemot pointed out that both Plutus datum and transaction metadata will address these concerns. Messages can now be anything, from a simple string confirming permission to log in to a website.
The implementation of scripts capable of signing messages represents a significant milestone in Cardano’s L2 ecosystem, according to Guillemot. This advancement is expected to make the development of dApps and L2s that connect to Cardano much easier, cheaper, and safer.
While the benefits of Cardano’s script Messaging are undeniable, it is important to address concerns raised by contributors within the community. Rick McCracken, another influential participant in the Cardano community, has expressed concerns about the role of ADA cryptocurrency in Cardano’s economy.
At the time of writing, ADA is trading at $0.5877, experiencing a 4.45% decrease in the past 24 hours. Although its market capitalization has decreased by 4.4% to $20.9 billion, the trading volume has increased by 6% to $666 million.
Despite the current market downturn for ADA, Cardano’s founder, Charles Hoskinson, has outlined three catalysts that could drive the cryptocurrency’s price. One of the key priorities is ensuring that decentralized governance operates smoothly as intended. Hoskinson emphasizes the need to streamline treasury activities, which are utilized to support staking incentives.
In conclusion, Cardano’s upcoming upgrade focusing on message signing is expected to enhance the developer experience and strengthen its position in the blockchain industry. With the potential to revolutionize Cardano’s L2 ecosystem, this upgrade could pave the way for easier, cheaper, and safer development of dApps and L2s that connect to Cardano.