Following numerous delays and further postponements of launch, Cardano’s Vasil upgrade will finally be integrated in the coming weeks. The testnet has shown a massive increase in transaction sizes and a decrease in transfer fees.
As mentioned by Charles Hoskinson on Twitter, another advantage of this upgrade is that it will allow the deployment of Djed, a DApp, on the Cardano platform.
Volatility in cryptocurrencies is a barrier to widespread adoption. Since the price of cryptocurrencies can change dramatically in seconds, they are not proper for regular trades. To prevent this, Cardano has decided to integrate Djed stablecoin.
The first stablecoin utilizing official validation to ensure value stability is Djed. The Djed protocol is syntactically correct and won’t require a bank, in contrast to several stablecoins. A smart contract is in charge of trading and purchasing Djed on the market to maintain a constant value due to the Djed algorithmic stablecoin contract.
It is a very brilliant idea. Smart contracts are tasked with issuing more coins as valuation increases. If valuation decreases, it buys more coins, helping to push it back up. It mints and burns stablecoins and reserve coins while maintaining a backup of base coins to guarantee a steady value.
Along with price stability, the Djed crypto also has other functions. It can be used for loans, payments, and payrolls.
Djed crypto can also be considered a “Safe Haven Asset”. Unlike other cryptocurrencies, since they are created to be stable, traders are not at risk of losing money. Also, valuation does not waver rapidly, and traders are in control.
Deployment of other DApps on Cardano is also possible. The Cardano team is working tirelessly to keep their project relevant and their community happy. The platform is not a newbie to upgrades, and more keep coming.