The block size has increased by 10% in the Cardano network | The ECB’s representative compares cryptocurrencies to the financial pyramid2 min read
Developers of Cardano from Input Output Global (IOG) increased the size of blocks in the digital asset network by 10% (from 80 to 88 KB).
A 10% increase in block size will significantly increase network throughput and speed up decentralized applications. This is the latest blockchain optimization from a series of updates planned for 2022, “noted IOG staff.
Over the next few days, experts will monitor the performance of the ADA network and determine the vector of future upgrades. If successful, programmers are likely to consider further increasing block size, as they increase blockchain performance. The IOG issued an update in response to the increase in transactions on the Cardano network.
According to the analyst firm Messari, the number of remittances in the ADA network began to increase in early 2022 and by March 28 increased 30 times (from $ 2.84 to $ 86.63 billion). After that, the number began to decline rapidly and has already fallen by 76% (to $ 20.98 billion)
Fabio Panetta, a member of the executive board of the European Central Bank, compared cryptocurrencies game tp the Pyramid and predicted the immediate collapse of the value of digital assets.
As in the case of financial pyramid, there will be positive dynamics continue as long as a growing number of investors believe in further appreciation and value of assets, unfair income or guarantees. As soon as the enthusiasts’ enthusiasm evaporates, the bubble bursts, “said Panetta.
According to him, cryptocurrencies threatens the financial stability of the European Union for three reasons.
First, the decline in the price of digital assets causes a decline in the value of stocks. Second, the collapse of investors into cryprocurrencies will cause a knock-on effect in traditional financial markets. Third, the disappointment of people who have invested in virtual currencies will lead to a decline in demand for other investment instruments.
In order to prevent these problems, Panetta recommends tightening control over the circulation of cryptocurrencies, without waiting for the collapse. The legislator therefore said that in response to the increase in demand for tokens and coins, they approved stricter measures to regulate the sale of digital assets.