Cardano’s successful upgrade provides it smart contract capability. Thus, allowing developers to build applications that can use the sophisticated capabilities of its blockchain. With the Alonzo update, inventor Charles Hoskinson is taking the first step toward a more equitable global financial system at a lower cost.
This is what Cardano promises to do. Due to its unique blockchain and transaction verification method, it is considerably more energy-efficient than Bitcoin. Due to its ability to correctly anticipate transaction costs. Developers may design apps without fear of missed transactions or unexpectedly large charges.
A Long-Awaited Feature
Following Monday’s Alonzo update, the Cardano blockchain explorer now lists over 200 smart contracts – but there’s a condition. The 200 smart contracts mentioned are now time-locked and cannot be utilized by developers. The Vercel App presently lists over 2,200 smart contracts ready for deployment.
Smart contracts have been a long-awaited feature on Cardano since its debut in 2017, and the Alonzo hard fork finally allowed them. According to Charles Hoskinson, creator of Cardano and IOHK, the decentralized finance (DeFi) sector is now “up for grabs.” In his view, the “second wave” of DeFi winners will have liquidity and interoperability, as well as cost predictability.
“We need governance, we need certification, we need insurance, we need regulation on these things, metadata identity… at the same time, you need to decentralize.”
The projects which already have smart contracts in timelock or are launching soon are GREED, Liqwid, SingularityNET, and Cardax. Cardano will be EVM-compatible, attracting DeFi developers looking to benefit from transaction costs.
ADA’s price has risen by 170 percent since mid-July, but it is now down by about 20% from its all-time high of $3.09 at the start of the month. ADA is currently trading at $2.38 as per CoinMarketCap.