The Chain Update Event (CUE), dubbed the Protocol Version 8 update of the Cardano blockchain, will allow the chain to work better with Bitcoin, Ethereum and other sidechains. The update will enable support for SECP256k1, the elliptic curve used for cryptographic security.
Concept Of the Update
The concept was recently revealed to the general reader by an anonymous Cardano enthusiast with knowledge of Cardano’s development. According to him, the event will facilitate interoperability with Bitcoin, Ethereum and other sidechains such as ZK-backed project Midnight. Cаrdano founder Charles Hoskinson shared the announcement on Twitter today, expressing confidence in the development. To clarify his thinking, he likened cryptographic primitives to the English and Spanish languages. Cryptographic primitives are algorithms used to make data more secure and help protect assets from theft. The elliptic curve is an example of a cryptographic primitive. Bitcoin and Ethereum use the SECP256k1 curve, while Cardano uses the Curve25519 curve. This situation is akin to speaking different languages. Therefore, this makes it difficult for Cardano to work with other blockchains that use the SECP256k1 curve.
The Protocol Version 8 Update As a Solution
The Protocol Version 8 update will eliminate this problem by enabling support for SECP256k1, making it easier to communicate with Bitcoin and Ethereum. In other words, Cardano will now also speak the SECP2556k1 language. This development will enormously benefit users by giving them access to other chains and tokens and opening up new cross-chain opportunities. To this end, users are encouraged to convince their Stake Pool Operators (SPOs) to update their Cardano nodes to version 1.35.4.
The update rollout is tentatively planned for early February by IOG, Emurgo, and the Cardano Foundation. However, IOG said it would like to determine whether these dates are convenient for the community through a survey.
The Protocol Version 8 update was the most significant update since the Vasil hard fork in September 2022. Five days after the Vasil hard fork on September 2022, IOG reported that all Vasil features on Cardano were available for use. According to statistics, just two weeks after the Vasil update, the number of contracts on the platform increased and reached 100. This situation shows that the update has raised the utilization rate of the chain.
Source
https://thecryptobasic.com/
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