Cardano (ADA) is nearing completion of its highly anticipated Chang hard fork.
Stake Pool Operators (SPOs) who verify transactions on the Cardano blockchain today started upgrading to the network's new software, Node 9.1.0.
Chang's hard fork is set to transfer control of the $14 billion blockchain to ADA owners. The hard fork will be triggered when at least 70% of all SPOs migrate to the new node. As of the date of writing this news, Cardano's node density is at 27% for the update, according to data from ADA staking platform PoolTool.
Hard forks introduce significant changes to a blockchain's software, making the network incompatible with previous versions once the transaction is completed. Major blockchains such as Bitcoin and Ethereum have undergone hard forks in the past. In particular, Ethereum's 2022 hard fork shifted the network's consensus from Proof of Work mining to Proof of Stake.
Named after Phil Chang, one of the first representatives of Cardano who died in 2022, the Chang hard fork will bring decentralized management to the Cardano blockchain, similar to DeFi DAOs. This means Cardano will no longer be under the control of the Cardano Foundation, Emurgo, and Input Output Global, the three organizations previously responsible for ADA governance.
Emurgo serves as Cardano's commercial arm, while Input Output Global, a blockchain development firm, is owned by Charles Hoskinson. With the transition to DAO-like governance, CADA holders will have the power to vote on changes to the blockchain.
Hoskinson has previously stated that this move towards decentralization is a testament to Cardano's maturation over the years. In addition to voting on blockchain changes, ADA holders will also have rights over the project's budget and treasury. ADA holders who choose not to participate in active management may delegate their voting authority to other participants.
The Chang hard fork marks the fifth network change for Cardano and will usher in the Voltaire era, which will decentralize control of the network, according to the project's roadmap. The previous eras, Goguen and Basho, introduced network features such as scalability and smart contract functionality.
*This is not investment advice.
