Life after Alonzo. Finally Cardano
- Cardano’s successful release of the Alonzo Hard Forks brought smart contracts to the platforms.
- After three years of testing and peer reviews, it has the same features as other smart contract ecosystems.
- Cardano’s smart contract capacities and functionalities have been heavily criticized.
Peer Review or First-to-Market? With Cardano implementing its smart contract functions on September 12th, Etheruem’s market dominance could decline. Cardano has successfully published the “Plutus Smart Contract functions through a hard fork update” and created a level assessment field between the existing smart contract ecosystem.
A new Dapps environment
On Sunday, September 12th, Input-Output HK (IOHK) announced the successful release of the Alonzo hard fork update. The new update will mark the “beginning of a new era” as developers are able to provide smart contracts in the network and thus stimulate the development of dapps.
In a blog post published by IOHK, the company explains that “Expectations” need to be managed as an ecosystem of sophisticated dapps is a contemporary endeavor, and emphasizes how long it took for Ethereum dapps to gain popularity.
The epoch-making update, which included three test phases, will open up new opportunities for network growth. Now Cardano has unlocked the development of new functions such as Decentralized Finance, NFTs and the Oracle network, functions that were previously available on other platforms such as Ethereum or Tron.
In addition, Tim Harrison, Marketing and Communications Director at IOHK, illustrated an outlook on the ecosystem showing the number of new or transition projects looking to leverage Cardano’s smart contract capabilities.
Stony path to success
The seamless network provisioning is a phantasm in the crypto space. However, when Cardano’s test network entered the final phase, developers and Ethereum maximalists discovered mismatches between network expectations and the smart contract service model. Specifically, the EUTOX proposed by Cardano offers a “different programming paradigm” than existing blockchains.
Minswap, the first DEX on Cardano, was forced to stop network testing as users discovered that Cardano’s smart contracts couldn’t process more than one transaction per block. However, the architecture of EUTOX is not a “fundamental flaw”, but rather a development challenge.
Nevertheless, IOHK published a blog post that explains the system architecture of EUTOX. According to the article, the system underlying Plutus’ smart contracts offers greater security, full cost predictability and the inability to lose transaction fees on failed transactions.
On the downside
- Cardano dapps won’t be released any time soon as DEX developers still have to find loopholes for the EUTOX challenge.
- The price of ADA could skyrocket as adoption of Cardano smart contracts increases.
Sell the news
In anticipation of the Alonzo hard fork, the price of ADA, Cardano’s native token, rose to a new all-time high of $ 3.10, according to Coinmarketcap. However, news of potential program problems prevented the parabolic rally as ADA stagnated.
After the successful hard fork, ADA lost 10% as investors “sold the news”. Additionally, the market sell-off associated with Project FUD in terms of programmability capabilities resulted in ADA’s price dropping to a weekly low of $ 2.27.
Nevertheless, Cardano’s smart contract has not yet been proven. However, with huge community support that Charles Hoskinson trusts, the network must meet the tough demands of the industry before it can be considered an Ethereum contender.
Why should you care?
Cardano is the third token by market capitalization, although there are no embedded network functions such as DeFi or NFTs that the industry is very demanding. A network valuation of $ 77 billion has to be argued and accounted for by the product it adds to the market. Thus, the Alonzo upgrade is the IOHK’s ticket. However, it is unknown if Cardano can win a significant stake in the smart contracts space.
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