How will Cardano change DeFi forever?

Cardano, the top five cryptocurrency, is planning to launch a smart contract function on September 12, when a brand new DeFi application ecosystem will appear, and it is guaranteed to be unique compared to the applications we have already seen. This will create new revolutionary dApps and opportunities for early adopters.

Cardano failure story is well known in the field of encryption currency: leave the Ethernet Square after, Charles Hoskinson Cardano will create a new intelligent platform contract, it promises Ethernet Square failed to deliver, that consensus proves equity, high transaction throughput And low fees. After four years of development, research, and peer revision, Cardano is finally ready for their biggest update to date: the Alonzo hard fork. This kind of hard fork will allow the issuance and deployment of smart contracts on Cardano, thereby bringing possibilities for Cardano-based tokens, NFTs and decentralized applications.

How will Cardano change DeFi forever?

Cardano is not only unique in terms of speed and high degree of decentralization, but also unmatched in its development environment. Most Ethereum alternatives, such as Binance Smartchain and Polygon , are still based on the Ethereum virtual machine, which means they can run code suitable for Ethereum without changes. Ethereum and smart contracts based on the EVM chain are written in a programming language called Solidity, which is similar to another popular web development language Javascript. In the five years or so since the release of Ethereum and Solidity, it has accumulated a huge developer community, and there are now countless tutorials, videos and seminars to help developers start using the language.

How will Cardano change DeFi forever?

On the other hand, Cardano will not be immediately compatible with EVM. There are plans to add this support in the future, but it may take several years to achieve. Instead, developers will have to write smart contracts using Plutus (a new and easy-to-program smart contract language) and Haskell (a programming language that has existed since 1990 but has not been adopted by the mainstream).

Using Plutus instead of Solidity is very important for the development of the Cardano ecosystem. On the one hand, this means that popular Ethereum dApps such as Uniswap, Aave and Compound and all other Ethereum dApps will not be easily ported to Cardano. This may result in Cardano’s lack of liquidity and dApps in the first few months, which may prevent some users from migrating to the platform. On the other hand, Cardano provides a brand-new platform for developers and users, and guarantees that there will be unique and unprecedented projects, unlike blockchains like Binance Smartchain, whose EVM compatibility means All its main dApps are just clones of existing Ethereum dApps.

Although the initial development on this platform may be slow, we will definitely see the next generation of DeFi built on Cardano, which may lead to the creation of the next Uniswap and Aaves, as well as other applications that have not been considered. In addition, because Plutus provides greater development convenience and built-in security verification methods, we should see fewer application vulnerabilities and hacking attacks, thereby reducing the negative news that reduces the adoption rate.

In addition, liquid mining opportunities are expected to be very profitable, especially after the September 12 release date. Projects with governance tokens need to incentivize users not only to use their platform, but also to use Cardano itself, so they will give away tokens for simple activities such as holding ADA, providing liquidity on their platform, or even borrowing money . This can also be seen in other blockchains, such as Harmony, where users can currently earn nearly 50% by staking BTC and ETH in the Sushiswap liquidity pool .

How will Cardano change DeFi forever?

The new Cardano ecosystem will give developers and users the opportunity to experience a new smart contract ecosystem, including new projects, tokens and features. Whether this ecosystem is attractive enough to make Cardano and ADA tokens as valuable as Ethereum remains to be seen, but what is certain is that competition in the smart contract field is healthy because it incentivizes all projects to continue to develop and upgrade. Bring a better experience for everyone.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-will-cardano-change-defi-forever/
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