Cardano’s Alonzo hard fork has been successful but takes time to see real benefit

Since the market has “sold the truth” after the successful Alonzo hard fork from Cardano, it is slowly being recognized that the real benefit for the network may still be behind it.

Cardano (ADA) hit a key milestone in its roadmap on September 13th when the blockchain launched as part of a hard fork smart contracts in the Plutus market.

Alonzo has been eagerly awaited in the Cardano community as well as in the crypto sector in general.

The smart contract functionality is intended to enable Cardano to be a platform on which developers can create decentralized applications (dApps) and even Mint NFTs. The milestone was hailed as a milestone in the development of the network, where “the real mission begins”.

That milestone, however, didn’t stop ADA from collapsing along with the broader crypto market, as Bitcoin fell below $ 43,000 on September 7th. After the hard fork on September 10, ADA fell 10% to an intraday low of $ 2.30, while Bitcoin and Ether only fell 4% and 6.97%, respectively. The ADA price is currently $ 2,033 at press time.

ADA price chart | Source: Tradingview

Marie Tatibouet, Exchange Gate.io’s Director of Marketing, said:

“That changes everything for Cardano! If Cardano was known for a long time as a smart contract platform without smart contracts, critics now have to rethink that. With the advent of actual contracts, the benefits and ease of use of Cardano are enormous. “

Cardano developers are the most active

According to a report With the title “Blockchain Trends Q2 2020/21” by Outlier Ventures, Cardano is one of the most actively growing blockchains with average monthly commits (CPM) on the Github codebase at an additional cost.

The average CPM for all protocols considered in the report is 107 CPM. These “commitments” essentially represent any additions or changes made to the network’s source code on Github.

In this regard, Ethereum is in second place with 447 CPM, IOTA is in third place with 394 CPM with Filecoin and Flow in the top 5 with 368 CPM and 306 CPM respectively. This shows that Cardano is 555% more active than Ethereum and 317% more active than the average of all connected blockchain networks.

In terms of the total number of developers building a given blockchain network, Ethereum is still at the top with 168 monthly active developers (MAD). Cardano follows just in second place with 165 MAD and shows an increase of 31.8% compared to the previous year. According to the data provided by Cardano, Cardano already has the functionality to enable the creation of NFTs, there are already 780,436 NFTs in the network.

Such an active developer community is proof of how quickly the network is evolving and adapting to the changing needs of the ecosystem. Cardano has a large number of developers with the highest development activities under similar blockchain protocols, thus improving the security and transparency of the network. The Alonzo hard fork, which offers smart contract functionality, will continue to drive these trends.

Cardano dApp is still under development

While the Alonzo upgrade, part of the Goguen phase of Cardano’s roadmap, allows developers to deploy Plutus-powered smart contracts on the network, the network has not quite reached this stage yet.

While the market assumes that more than 2,000 smart contracts have been deployed in the Cardano network, data The Vercel app, a third-party data provider that uses data from Adapools.org, has only provided 27 smart contracts operated by Plutus at the time of writing.

Source: Vercel app

There is also a market-wide perception that smart contracts (7,000) are on a timeout. However, a Cardano spokesperson made it clear that the network has had timelock scripts on the project’s roadmap since the Allegra days. These timelock scripts are used for operations such as supporting NFT casting by having the NFTs execute unique multi-character and example schemes. Smart contracts are very different from these scripts and cannot be placed “in the time lock”.

Hunain Nasser, Senior Analyst at OKEx Insights, Research Team at OKEx Exchange made it clear:

“Timelocks are used to protect users from changes to contracts after they have been created. Not all of the 2,300 scripts seen on the Cardano network are actual applications, most of them are token minting and NFT policies on the Cardano network, and they have been time-locked to prevent changes. “

However, the time-out can be used after dApps are created and widely used. They can also be used to notify users when changes to the smart contract are triggered. This feature prevents changes from being implemented immediately and gives users time to review and act if necessary before they are deployed.

It remains to be seen how quickly real benefits (dApps and DeFi functions) can come into the Cardano network. But it can also be about managing expectations. Johnny Lyu, CEO of the KuCoin exchange, said that while the Alonzo upgrade was a milestone for Cardano, people shouldn’t expect lightning-fast gains in a short space of time.

“Users need to be patient and developers need to keep working hard to avoid mistakes that can lead to hacking and losing money on smart contracts.”

A quick and sloppy example of smart contracts pouring into the network can be seen on Binance Smart Chain (BSC), the most recent being the $ 12.7 million bitcoin hack by pNetwork.

“At the same time, I believe that after the launch, it will take more than two years for dApps to be fully deployed and running on Cardano, just like with the Ethereum network. I think everyone is ready to go right now and bring some new products and apps to users, but need to make sure they are safe, “added Lyu.

Since Cardano is a blockchain project that has always been focused on the basics, it can be assumed that they will only let money flow through smart contracts if they are considered secure.

The founder of Five Binaries, Marek Mahut – who runs the first smart contract on Cardano – says:

“Security and scalability are key attributes for every developer. Cardano’s accounting technology, eUTXO, offers a new approach to simplifying the writing of secure smart contracts. “

The Cardano Foundation hosted the Cardano Summit 2021 from September 25-26. IOHK, the blockchain research and development company that powers Cardano’s infrastructure, discussed planned upgrades and improvements to smart contract functionality at the summit. It remains to be seen when the actual dApp implementation can take place on the network, but it is not an instant process.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Mr. Teacher

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page