Cardano Prepares Plutus V3, Big Upgrade For Smart Contract And Interoperability

New upgrade for Cardano blockchain. ADA is a native token Cardano. (Photo; Doc. Unsplash)

JAKARTA - Cardano, the proof-of-stake blockchain platform will soon launch Plutus V3. This is a major upgrade that will improve smart contract and interoperability capabilities, performance, and efficiency between blockchains.

Plutus V3 is the latest version of Plutus Core, the programming language used on the Cardano blockchain to create and run Smart contracts. Just for information, smart contracts are digital contracts that are automatically executed on the blockchain.

Plutus V3 will enrich Plutus Core's cryptographic capabilities, which are an important element to maintain smart contract security and reliability and transactions on blockchain. Plutus V3 will add some new cryptographic primitives, namely mathematical functions used to generate digital signatures, hash, and Zero Knowledge Proof (ZKP).

This new cryptographic primary will help developers meet the latest industry standards, which continue to grow along with the development of technology and market needs. This new cryptographic primary will also allow developers to move smart contracts from other blockchain platforms, such as Ethereum, which is currently Cardano's main competitor in the smart contract field.

In addition, this new primitive cryptograph will also support the construction of sidechain bridges, which is a mechanism that allows asset transfer and data between different blockchains. Sidechain bridges will increase blockchain interoperability, which is one of the main challenges in the current crypto industry.

Plutus V3 Increases Performance And Efficiency

Plutus V3 will also improve the performance and efficiency of smart contracts and transactions on the Cardano blockchain, by adding sums of products (SOPs) features. SOPs are a way to encode different types of data in a more concise and space-efficient way, compared to the previous method called Scott encoding.

Using SOPs, smart contracts and transactions on the Cardano blockchain will be faster and cheaper, which will benefit both developers and users. According to Global Output (IOG) input, companies developing Cardano, SOPs can increase program speed by 30%, which is a significant performance optimization.

In addition to SOPs, Plutus V3 will also provide an updated script context, which will allow users to view entities related to governance and voting on the Cardano blockchain. Governance and voting are features that allow Cardano token owners, namely ADA, to participate in decision making regarding platform development and improvement.