The Cardano network is inching closer to the Mithril upgrade. Through this upgrade, it will be possible for Cardano accounts to be integrated into a secure and decentralized multi-signature scheme.
This upgrade comes at a strategic time for Cardano, given the recession happening across the broader cryptocurrency market. Cardano has fallen by around 84% from its all-time high, and this upgrade could motivate people to buy Cardano, causing a price pump.
Cardano’s Mithril upgrade
A Twitter user dubbed @hans-the-crypto gave a comprehensive explanation of what the Mithril upgrade was and how it would offer solutions to the network. He noted that Mithril was different from the existing multi-signature solutions where transactions needed the majority of votes to be approved.
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Multi-signature is a type of cryptographic signature that needs a certain number of owners to sign. This number could be around two-thirds of the owners. However, Mithril is focused on innovativeness, and the plan is to offer a model that will be different from multi-signature.
The Mithril multi-sig design is different, and it has advanced from the traditional multi-signature model. It allows users to consider the number of ADA tokens staked by the signers to determine their roles in the approval process.
Mithril is a stake-based threshold multi-signature introduced by two lead developers with Input-Output Global, Pyrros Chaidos and Aggelos Kiayias. The two developers have focused on making multi-signatures fair and more inclusive.
“To sign a message, m possible signers are randomly selected based on their stake. If k out of m sign, a full signature is obtained… The parameters for this are very important, as you wouldn’t want just 3 holders “representing” the entire network. The more m signatures you pick the better the signature represents the full network, but the process becomes slower,” the tweet added.
Over 1000 projects are building on Cardano
Cardano adopted smart contracts in September last year, and since then, it has seen notable growth in the number of decentralized applications (DApps) building on the network. In Q2 2022, the number of projects on Cardano surpassed 1000.
Most projects running on the Cardano network are related to non-fungible tokens (NFTs). These projects include digital tokens and marketplaces, accounting for nearly half of all the DApps on Cardano. The other notable projects on Cardano include stablecoins and dev tools. These apps are accelerating the growth of the Cardano network, and ADA could become one of the best utility tokens in the market.
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