What is the new Chang Hard Fork? Bitcoin is going to Cardano (ADA) after creating a new data structure. Two open-source libraries have already been released on GitHub – find out more here.
Because of Bitcoin, there are now many other exciting developments. The main weakness in the first network is the absence of smart contracts.
But that’s about it. Despite smart contracts and complex on-chain dApps like Ethereum or Solana, Bitcoin maintains its lead as the most valuable.
The simplicity of the network has also been an inspiration to many, especially to Cardano developers. As developers look to build on top of Bitcoin, one developer wants to do something different.
In a post on X, the Technical Director of the Cardano Foundation said he had released a pair of open-source libraries on GitHub to “run” Bitcoin on Cardano.
I've put the entire Bitcoin chain on Cardano and added a block to it!
… sort of.
Let's rewind a bit.
This has already somewhat leaked, but I've been working on a (top-secret) open source library which I am happy to "officially" release. Enters:https://t.co/THOrvKk6rA
— KtorZ (@_KtorZ_) June 3, 2024
While initial rumors suggested that these libraries would allow them to run the entire Bitcoin network on Cardano directly, the reality is more nuanced but significant.
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A New Data Structure: Bitcoin On Cardano (ADA)?
The developer released a new data structure called “Merkle Patricia Forestry” (MPF) to make this possible. What’s special about the MPF is that it builds on the existing Merkle Patricia Tries (MPTs).
Thus far, blockchain state management systems on Ethereum heavily rely on MPTs. Developers use MPTs because they offer key advantages like authenticated data storage and efficient proof generation for specific operations.
The problem with MPT proofs as they are is that they can easily become large, which negatively impacts on-chain storage efficiency. Realizing this limitation, the developer introduces “Sparse Merkle Trees” within the MPT structure in an approach dubbed “Merkle Patricia Forestry.”
Through Sparse Merkle Trees, data can be arranged in smaller but more manageable units within the overall structure. This approach reduces proof sizes without compromising data integrity on the Bitcoin mainnet.
With the two MPF libraries now available to the community, developers can create a “sidechain” functionality where a compressed representation of the world’s valuable blockchain can be stored on Cardano.
This approach is advantageous: For the first time, developers can now interact with Bitcoin data on Cardano without relying on the original network.
The Bottom Line: ADA Building Ahead Of the Chang Hard Fork
For now, this innovation is being tried and refined. However, the Cardano Foundation executive believes it can open up so many uses down the line. Of the many, it will be possible to create “oracles for a variety of smart contracts.”
Currently, Cardano continues to build. The objective in the Basho stage is to make the network more performant and scalable.
Ahead of this, the network plans to release the Chang hard fork, which will enhance on-chain governance and further help decentralize the platform.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
