Smart contracts integrated into Cardano
The news was announced yesterday by Input Output, and the update took place in the evening. The hard fork marks the beginning of a ” new era ” according to the project leaders. The arrival of Alonzo and smart contracts allows all large-scale projects built on Cardano to start being integrated into the blockchain. So this officially marks the beginning of dApps.
The Cardano release notes, however, that the arrival of smart contracts is not a destination in itself, but the beginning of a new ecosystem. In that sense, deploying projects will take time:
“There are high expectations associated with this update . Some are not reasonable. Cardano watchers might expect a sophisticated ecosystem of out-of-the-box dApps available immediately after the update. So expectations must be managed. “
More information on the Cardano project (ADA)
What this will change
Input Output is not displaying this caution by accident. Cardano is a high-profile project that has been sailing for months between a community that praises its future capabilities and critics who point to slow development and possible network limitations. The arrival of smart contracts on Cardano should do nothing to alleviate this surveillance.
The project leaders point out that beyond smart contracts, the Cardano ecosystem has grown this year. There are now 825,755 wallets that store ADA, an increase of +35% since last June. In total, all staged ADA accounts for $59 billion, or 71% of the supply.
The arrival of smart contracts on Cardano, however, will allow the network to offer features that will allow it to compete with Ethereum, again according to the statement:
” We have the foundation […] to enable many dApps and decentralized finance (DeFi) use cases – from simple “swap” applications to decentralized exchange platforms (DEX), as well as more complex computational programs like oracles, or algorithmic stablecoins backed by cryptocurrencies. “
ADA’s price is also taking a hit
For now, this major milestone in Cardano’s development has not allowed its ADA cryptocurrency to escape the general price drop, which has been taking place since last week. There was indeed a breakthrough the day before the announcement, but it was offset by a -14% drop early this morning:
Source: TradingView, ADA/USDT
With a capitalization of $77 billion, ADA remains third in the ranking of the most capitalized cryptocurrencies, ahead of USDT, which has $69 billion. The drop is otherwise shared by the majority of major altcoins: ether (ETH) loses -17% on the week, Binance’s BNB loses -20% and Ripple’s XRP drops -17%.
Notably, two other “Ethereum killers” are however doing well on the week. Solana’s SOL is up +12% as a result, and Polkadot’s DOT is posting +3%.
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About the author : Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that come from blockchain and I love digging up the juiciest news to share with you.
All articles by Marine Debelloir.