Cardano’s Alonzo Hard Fork Combinator has been one of the most important upgrades that have occurred on the Cardano network. Deployed just over a month ago, the upgrade brings smart contracts and Decentralized Finance (DeFi) services to the Cardano ecosystem.
Decentralized Applications (DApps) On Cardano’s Blockchain
The Alonzo Hard Fork Combinator allows developers to develop and deploy dApps on the Cardano blockchain. This has provided a significant boost to Cardano’s network, as the protocol continues its work in collaboration with developers, helping them deploy their decentralized applications on the network.
With the successful deployment of the Alonzo Hard Fork Combinator, developers are preparing to focus on the next phase of Cardano, the Babbage Era.
What’s Next For Cardano
Software engineer at Input Output, Kevin Hammond, gave a glimpse of what Cardano was working on next, sharing an update revealing that IOHK was ready to move towards the Babbage Era, the next phase of Cardano.
The Babbage Era is named after Charles Babbage, a mathematician credited to be the “father of the computer.” The Babbage Era will essentially iron out any issues that may be left after the Alonzo upgrade.
Proposed Performance Improvements
Several performance improvements are planned to be rolled out on the blockchain during the Babbage Era. According to Hammond, these improvements have been in the pipeline for a considerable time but have not officially launched.
Issues that will be addressed are improving the sinking speed, along with several performance issues brought into focus by developers and operators since the Alonzo Hard Fork Combinator became operational. The improvements are considered important as they will ensure that users on the network have a relatively smooth experience while working on Cardano.
Plutus, the language used on the Cardano network, is also getting a significant upgrade. The developer reveals plans to improve the language by introducing a new version of Plutus on the blockchain. Plutus script-specific aspects of Cardano’s network will also be improved, which will allow faster and larger transaction volumes in each block.
The new version will also include several additional features, which Cardano’s user base has been demanding for quite some time.
There are also plans afoot to decentralize the Cardano blockchain further. Cardano is looking to give its community more control over what happens on the network and which direction the network takes.
Cardano, having launched Alonzo, now aims to deploy Hydra.
Hydra is a layer 2 scaling solution that will make the real-world application of Cardano possible.
Development of Hydra to be discussed during Cardano Summit 2021.
There are quite a number of exciting developments happening in the Cardano network. The Alonzo upgrade that happened recently was a significant milestone in the Cardano journey. With it, the network can deploy base-level scripting capability for smart contracts that will, in turn, enable further innovation and network development.
Having achieved this feat, the next milestone the network is aiming to reach is the deployment of Hydra, a key layer-2 solution to further improve Cardano’s scalability by layering a new protocol on top of the existing layer 1 blockchain. According to Charles Hoskinson, Hydra is already in development on the Alonzo hard fork.
In an explanatory video, David Orr of IOHK asserts that while Cardano can and does change transaction fees to balance costs, it cannot keep transaction costs low enough for micro-payments to be feasible with just its base layer. He notes that Cardano cannot also handle storage problems that will arise from the growing storage of transaction history, on just its layer 1. Hence the necessity for Hydra.
With Hydra, the network aims to maximize throughput and minimize latency while incurring low to no costs, and greatly reducing storage requirements. It will do this by providing a more efficient means of processing transactions off-chain for a set of users while using the main-chain ledger as the secure settlement layer. This will also ensure that Hydra keeps security guarantees while remaining loosely coupled to the main chain.
While many speculate that the deployment of Hydra will see the blockchain reach a throughput of millions of transactions per second, the developers at IOHK have stated that the figures are just aspirational targets and may not be the actual figures.
“Terms like ‘one million TPS (transactions per second)’ have been used before. It is a bold number, and while this remains as an aspirational target, the ultimate goal of any system is the flexibility to grow capability with demand.”
However, they remain optimistic that the addition of an increasing number of Hydra on the network will improve user experience on the entire network.
“In principle, by adding increasing numbers of Hydra heads to the system, arbitrarily high throughput can be achieved by the system as a whole.”
Currently, the development team is focused on building the hydra-node and the Hydra Head protocol until it becomes “a solid and stable foundation for the community (and us!) to build real-world applications.” It is expected that Hydra development will also be a key subject of discussion at the Cardano summit 2021 taking place between September 25 and 26.
Smart contracts have become a reality on the Cardano network after September 12th. After the Alonzo Hard Fork Combinator launch, developers could now go ahead and start creating smart contracts on the ecosystem. This would aid in developers creating decentralized applications (DApps) to provide decentralized finance (DeFi) services to the users of the blockchain.
With the number of smart contracts that have been created on the network, it is no doubt that we are about to witness an influx of new decentralized apps on the network. The project has said that they are supporting developers in bringing their projects to life on the platform. By making the Cardano ecosystem as safe and developer-friendly as it possibly could. The developers, in turn, have shown their confidence in the network with the number of smart contracts already live on the ecosystem.
The first day after the launch was completed saw over 100 smart contracts created in the first 24 hours. This number in itself was impressive. But the subsequent days have shown an even accelerated timeline for the creation of these smart contracts. Thursday 16th September marks the fourth day after the Alonzo HFC and the current count for the smart contracts on the network now sits at 2,3k+.
While most of these smart contracts are not going into effect now, developers are creating them in a bid to lock their tokens ahead of the release of their decentralized applications. It evidences the number of projects developers are already working on to bring to the Cardano ecosystem. With the rise of decentralized finance still continuing, and as more people move away from other leading smart contracts platforms in favor of a cheaper and faster alternative like Cardano, more protocols are expected to launch their smart contracts on the network.
Currently, these smart contracts are in a timelock contract, effectively locking them up for a specific period of time until the developers are ready to make use of them. This will provide the developers the time they need to develop their protocols while having secured their smart contracts for their uses ahead of time.
How This Affects This Price
The effect of this many smart contracts being created on the Cardano blockchain may not be apparent immediately. But there is no doubt that the rate at which the smart contracts are being created will have long-term positive effects on the price of its native asset ADA.
The rise of decentralized finance has been one of the major driving forces behind Ethereum’s success, and most recently, Solana’s success. In the same way, DeFi protocols on the Cardano blockchain will also effectively increase the value of its token. This is because once these decentralized applications are up and running, users will need to use ADA to carry out transactions on the blockchain.
Whereas users do not necessarily need to hold ADA coins, they will need to be purchased to trade and pay for transaction fees. This will create demand for the coin, in the long run, leading to a higher value of the digital asset.
Cardano’s Alonzo mainnet launch is now live! This is indeed a huge milestone for the project. CEO Charles Hoskinson says that this is the beginning of a New Era for Cardano. This much-awaited launch is highly anticipated by the whole crypto community.
Cardano’s future success is the possibility of market cap going up. Presently, ADA’s market cap is over $83 billion. One analyst expects the crypto to hit $500 billion in market cap. This will only further boost Cardano’s standing in the crypto space.
Alonzo will bring with it smart contract functionality. With this, we may see a boom in DApps, NFTs, blockchain games, and DeFi on Cardano. Many projects will eventually flock towards Cardano and its growing network.
At the moment, Cardano is going through its Goguen Era. After this, there is the Basho Era and finally the Voltaire Era. By the time Voltaire is complete, it will be Cardano’s community that will run the show. ADA holders will have the power of governance and can influence what happens next on the network.
Therefore, we can be certain that the Alonzo mainnet launch is only just the beginning. The project still has many adjacent projects and phases to complete before it hits its last Era — Voltaire. It will be incredible to see where the project will go next from here. Perhaps we will soon hear more concrete updates from the upcoming Cardano Summit 2021.
In their latest blog post, the IOHK says that the summit’s sessions have been finalized. The blog confirms over 100 sessions with over 40 hours of content. It seems the 2 days of the summit will be packed with action. All in all, the IOHK is ready to celebrate this day.
One of the biggest, most anticipated events over the last few months has been about the Alonzo Hard Fork. This is Cardano’s imminent milestone. The one that’ll most likely change the crypto space as we know it.
The CEO of Cardano (ADA) — Charles Hoskinson, has been very vocal about every update and every step that has to do with this launch. However, the most important announcement on this matter came very recently.
Cardano’s Alonzo Mainnet Launch
This detail concerns itself with the release day of the Alonzo mainnet launch. The date is set for September 12, 2021. On this day, all users on the Cardano blockchain will experience the joy of deploying their own smart contracts.
The reason behind the long wait is because the team wanted to ensure the best quality along with the tightest security. They did not wish to take one step forward and two steps back. Therefore, after careful consideration, the Cardano team came up with a dedicated plan to launch Alonzo’s mainnet.
This plan involved specific phases. The Alonzo mainnet would only be ready for launch when the Alonzo testnet would be complete. These testnet launches were done in color-coded phases. It started with Alonzo Blue then White, Purple, Red, and Black.
Each testnet launch confirmed the complete workings of certain functionalities. The team now believes Alonzo is ready for its final mainnet launch. To highlight, the most important thing to come from this hard fork is the fact that users can now enjoy Cardano as a smart contracts platform.
Cardano: The Smart Contract Platform
Let’s have a look at the specific functionalities confirmed by the testnets. Alonzo Blue brought smart contracts to about 50 technical participants. These participants stayed as stake pool operators. Alonzo White added more features.
To be specific, it bought on more technical participants. Together, they tested the network’s working capabilities. Next, Alonzo Purple took the testnet to the public. Here, users could make simple smart contracts and later, more complex ones.
Finally, Alonzo Red and Black took charge of finding and fixing bugs and similar specifics. They act as the clean and wind-up crew. It is imperative that the testnets are absolutely fool-proof before the mainnet launch as tweaks to the hard fork are not a very viable option in the future.
Therefore, the Cardano team has carefully taken its time to make the mainnet as ready as it will ever be before the full and final launch. Which, much to the crypto space’s enthusiasm, is almost upon us!
Cardano’s Impact After The Hard Fork
The biggest impact of course if the fact that smart contracts can be deployed on the platform. The means that users on the platform can launch DeFi applications, mint Non-Fungible Tokens (NFTs), and play blockchain games.
So far, the Ethereum blockchain is where most developers go for deploying any of the above. Sure, new blockchains are popping up but as of now, Ethereum holds the majority in this industry. However, Ethereum users are facing a huge drawback in the form of congestion which results in slow transactions and high gas fees.
This is an abomination that Cardano’s new Alonzo hard fork can help avoid. Cardano is built to be more scalable compared to Ethereum. It also uses a Proof-of-Stake (PoS) consensus in contrast to Ethereum’s current Proof-of-Work (PoW).
Besides this, Cardano has a major 5 step roadmap in place. It consists of 5 eras, in order — Byron, Shelley, Goguen, Basho, and Voltaire. Each era will bring radical developments onto the Cardano network.
Currently, Cardano is in the middle of its Goguen era. At the end of the Voltaire era, Cardano’s community members will be the ones to make major decisions for the platform. They will do so based on community votes. Along with Alonzo, Cardano has many other interesting projects under development.
To name a few, there is Hydra — the Layer-2 solution. Cardano will continue to work on new projects whilst also working to improve existing projects. For instance, the Cardano team will continue to improve its Plutus programming language along with the Plutus Core. The Yoroi project will also not be forgotten.
Will ADA Price Hit $10?
The greatest news during all this Alonzo mainnet buzz is the fact that the price of Cardano’s native token ADA has been steadily going up over the past few months. The successful launch of the testnet certainly is a contributing factor to the rising prices.
Although it could also be due to the steady support that the project gets thanks to its dedicated community. A large part of Cardano’s supply is already being staked. On September 3, 2021, Cardano set a new all-time high (ATH) at $3.09. This came soon after the Alonzo mainnet launch announcement.
When it comes to the price of ADA’s next ATH, analysts are certain it will go up. However, how high will it go? This is a matter of great discussion between many analysts, some say $5 while others say $10.
One analyst, in particular, says that since over 71% of ADA’s total supply is already being staked, it is only inevitable that its market capitalization will also go up. In fact, this staked amount stacks up to more than $31 billion.
The analyst says that it is more likely for ADA to go 10x than it is for Ethereum. This will most likely turn the tides for Cardano. To conclude, he says that Cardano will most likely hit $500 billion in market cap. Ultimately, this will bring more users onto the platform who will continue to stake. All in all, with so many future milestones to look forward to it is clear that many factors will contribute to ADA’s next ATH. As we saw with the latest ATH being set even before the Alonzo mainnet update, it is only exciting now to see where the price of ADA will go next. We will soon hear about the firm’s plan for progress at the Cardano Summit 2021.
Automated market maker Cardaswap will get bridged to the Cardano blockchain after successful completion of the Alonzo hard fork.
The hard fork combinator event scheduled for September 12 is a major milestone as Cardano ushers in a transformative era of “smart contracts capability.”
ADA has surged 31% in the past two weeks, analysts set the next target at $3.
81% of participants on Polymarket bet in favour of Cardano’s smart contract launch by October 1, 2021.
As non-fungible token creators consider minting NFTs on Ethereum “unfeasible” due to high transaction costs, Cardano offers a viable and low relative cost alternative on its mainnet.
ADA rally continues as Alonzo Hard Fork event draws close
Input Output Hong Kong (IOHK), the blockchain development company behind Cardano, shared an update on August 26 outlining the final implementation in the launch of Daedalus, the full node wallet for native cryptocurrency ADA.
The development team is counting down to the Alonzo Hard Fork scheduled for September 12. The network is now prepared for a public Alonzo testnet hard fork.
Cardano price rallied over 30% in two weeks, and the announcement is driving the rally higher. ADA hit an all-time high of $2.95 last week, and analysts expect the altcoin to hit a target of $3.
Benjamin Cowen, a cryptocurrency analyst and YouTuber, recently shared his analysis in a strategy session on the video network. Cowen highlights the correlation between Cardano and Bitcoin. If Bitcoin stays above 20-week Simple Moving Average (SMA), Cowen expects Cardano to continue its price rally.
Is ADA likely to hit $3.00? The answer to that question likely is just if Bitcoin stays above the 20-week (moving average), it lies with that answer. If Bitcoin is able to stay above the 20-week for just… a day or two, definitely the next few weeks it seems very likely that ADA is going to blast through the $3.00 milestone.
The Cardano community now has renewed confidence in its smart contract launch on the mainnet following the updated announcement and the price rally. It is evident from a bet on the launch of smart contracts on the Cardano network. In an open-betting pool on Polymarket, a global information markets platform, 81% of the participants are in favor of Cardano’s mainnet launch.
Up from 64% eight weeks ago, now 81% participants are confident that smart contracts will arrive on Cardano mainnet by October 1, 2021.
The Cardano project is very close to rolling out its smart contracts feature called Alonzo. IOHK, the development team behind the Cardano blockchain, is working to get the latest update that will add the long-awaited smart contracts to go live as of October 1st. Will the update occur within the established dates? Most people think it won’t.
Cardano is currently the fifth-largest blockchain by market capitalization. In 2021 it has generated great expectations and this contributed to the growth that its token ADA has experienced. The decentralized blockchain project is one of Ethereum’s biggest rivals on the market. For this reason, it is not surprising that users want to bet on their progress. This is what is currently happening in the Polymarket decentralized prediction market, based on the Polygon sidechain.
What impact will Alonzo have on the Price of Cardano (ADA)?
Prediction markets allow people to bet on the outcomes of real-world events, and somehow provide a way to know what people think about a particular situation. Currently, a group of users is betting on whether Cardano will launch the smart contracts by October 1, and most participants are skeptical of Cardano’s schedule. Shares traded at $ 0.43 for “yes” and $ 0.57 for “no”. Since the most expensive bets are the most correct, this indicates that market users are currently leaning more towards a prediction that indicates that smart contracts will not be available on time.
These bets do not seem to worry the founder of Cardano, Charles Hoskinson. In fact, he tweeted the page along with the comment “People, you really make me laugh.”
Smart Contracts arrive on the Cardano (ADA) Blockchain in August
What is the Goguen stage of Cardano’s development plan based on?
Since its founding in 2015, Cardano has been one of the most cautious developments in the ecosystem, adding features slowly and after multiple extensive research and testing. Today, six years after its launch, a new stage arrives for the blockchain that will put it to the test, allowing it to compete with the other third-generation blockchains such as Solana, Avalanche, Tezos, and with the main rival: Ethereum.
Following an elaborate development plan divided into stages, Cardano is in the Goguen era, which is the most significant for the blockchain because it will add support for smart contracts, native tokens and will open the possibilities to build a DeFi ecosystem within this network.
In order to do this, Cardano is performing a multi-phase upgrade known as ‘Alonzo’. Each phase of Alonzo – Blue, White and Purple – will bring more users, functionalities, and features to the network. On Thursday, July 15, the IOHK team successfully deployed the Alonzo White fork in the testnet. Once all the phases of Alonzo finish, Cardano will finally have functionalities such as DeFi and dApps.
This deployment is expected to be fully implemented between August and September of this year and launched on October 1st.