Is planning to issue a smart contract Cardano to turn the tide?

To “add smart contract functions” to the network, this new news from the official blockchain project Cardano boosted market expectations for its network native Token ADA. From August 11, ADA broke through from 1.54 US dollars and climbed to a maximum of 2.24 US dollars on August 15 and increased by 45% in 4 days. It was not far from its historical high price of 2.46 US dollars in May of this year.

ADA currently sits at the third place in the ranking of the market value of crypto assets with a total market value of about 70 billion U.S. dollars. In the world of encrypted assets and blockchain, Cardano is a different kind.

Cardano, founded in 2015, has won the reputation of “academic school” and “technological flow”, but also has the reputation of “dead link” and no DApp landing, and the latter has made supporters hate iron and steel.

In addition to the scandal that the capital Emurgo used to squander public funds, the most criticized by the outside world is that it has been developed for more than 5 years. ADA is useless for currency holders and can only be used for staking (staking income); At the C-side application level, Cardano is only used as a transmission carrier for ADA, not the “running various DApps” pie drawn by it back then.

Today, the once “dead link” Cardano wants to use smart contracts to fight a “turnaround”. The team announced that it expects to implement the “Alonzo hard fork” in September and run smart contracts afterwards.

From scratch, this is a news that can excite the market, but the problem is that Cardano (ADA), which has been benchmarking Ethereum (ETH), has been behind in smart contracts for many years, and DApp and even DeFi ecosystems have to start from scratch. Combining with its slow development in the past, I am afraid that this battle will be fought for many years. In this bull market, Cardano is likely to be just a borrower, and its rival, Ethereum, has the power to lead the market.

Smart contracts are expected to be launched after the hard fork in September

In terms of market value, Cardano’s native Token ADA has surpassed Tether (USDT) to become the third largest crypto asset. The market value of ADA with a total issuance of 45 billion is currently about 70.2 billion U.S. dollars. At 5 o’clock on August 16, Coingecko data showed that ADA was quoted at US$2.19, which was about to break through the three-month high of US$2.24 set on August 15.

On May 16th of this year, ADA reached the highest price of US$2.46 since its issuance in 2017, and it has regained the attention of the market due to a 14-fold increase in a year. During the same period, BTC (market value of US$878.3 billion) increased 3 times during the year, and ETH (market value of US$382.6 billion) was 6 times higher. The mainstream asset that can rival ADA’s annual increase is BNB (market value of US$63.4 billion), which has risen 16 times in the past year. Times. The market value of ADA has jumped into the top five of the crypto assets rankings, and the best ranking is currently still occupying the third place.

Other crypto assets are still far from their previous highs under the rebound of the big market. The current price of ADA is only 11% away from the historical high of $2.46.

Is planning to issue a smart contract Cardano to turn the tide?

ADA is approaching new highs this year

In addition to the overall rebound of the market, ADA’s recent rapid rise is mainly due to the upcoming launch of smart contract functions on its main network Cardano. The network was founded in 2015 and aims to compete with Ethereum and other decentralized application platforms. It claims to be more scalable, secure and efficient. It can be regarded as an earlier batch of adopting a PoS (Proof of Stake) mechanism. Blockchain projects currently have infrastructure such as wallets and clients, but there has been no smart contract that can be run by DApps (decentralized applications) in the past 6 years.

Now, this missing piece of the puzzle has to be filled.

On August 10th, Cardano founder Charles Hoskinson (Charles Hoskinson) announced the upcoming smart contract function. On August 11th, ADA began to soar from around US$1.54. You know, on July 20, ADA fell to about $1.

ADA has doubled in less than a month, which shows how good the news of Cardano’s launch of smart contracts is. On August 10, Hoskinson stated that the team expects to implement a hard fork before the Cardano Summit in September. This also makes the outside world speculate that the smart contract of the network will be launched in September this year.

Cardano, which is about to launch smart contracts, will take a long time to develop.

In 2015, the network entered early research and development. The founder Hoskinson was one of the early eight founding members of the Ethereum team, but he was on the issue of whether the blockchain should be a for-profit entity or a non-profit entity. , Have a fight with Ethereum founder Vitalik Buterin. Hoskinson hopes that Ethereum can accept venture capital and create a for-profit entity, which is to the left of Vitalik’s idea.

In the end, Hoskinson left the Ethereum team and established a blockchain engineering company IOHK with Jeremy Wood in Hong Kong. In September 2016, he registered the Cardano Foundation in Switzerland, and the funds were invested in 2017. Supported by Emurgo, a business team founded in Japan. Development, operation, and business, Cardano began to invest in the construction of the network in a “three-in-one” manner.

Slowly evolving for 6 years amidst doubts

Cardano took a completely opposite route to Ethereum. Hoskinson left the team to create a new project, which meant a bit of revenge. The project abandoned the PoW (Proof of Work) mechanism adopted by Bitcoin and Ethereum, and initially used the “environmentally friendly” PoS mechanism as a selling point. In October 2017, it issued 45 billion network native tokens, ADA, at a cost of $0.0026. The price is publicly offered to the outside world.

Obviously, Cardano caught up with the last bull market. After continuous operations such as ICO and on-line exchanges, in January 2018, ADA rose to a maximum of $1.22, obtaining an investment return of more than 460 times for early investors. One of the most successful ICO projects of the year.

In June 2018, the Cardano mainnet was launched, and a light wallet and light client were developed. In the past 3 years, the network has developed from a version named “Byron stage” (building the underlying PoS core protocol and basic wallet), and has gone through Shelley (multi-signature, determining consensus rewards and fees, etc.), Guguen (virtual machine and its language) After the upgrade of the architecture, network security), Basho (performance improvement) and other stages, it has evolved to the current Voltaire (scalability) stage.

If there is no accident, it will enter the Alonzo phase in September to complete the deployment of smart contracts.

From the perspective of progress, Cardano can be said to be “doing something”, but ADA holders will complain from time to time that the project is always spinning in place. After all, it is developing under the banner of Ethereum, and its development time is not much later than that of the opponent, but its ecology is much thinner than that of its opponents.

Is planning to issue a smart contract Cardano to turn the tide?

Hoskinson established an influence in the industry by creating Cardano

This is not unrelated to Cardano’s initial route. Hoskinson starts from a profit-making entity, and the direction that this organizational form wants to integrate is the government and enterprises, which is far from advocating a peer-to-peer, more 2C-end blockchain core.

In 2018, IOHK announced a partnership with the Ethiopian government to deploy their technology to various industries across the country. By April 2021, IOHK and the Ethiopian Ministry of Education finally announced plans to launch an identity and record keeping system on Cardano for the country’s 5 million students.

Authentication, storage, and traceability are the current main functions of Cardano. In 2019, the Ministry of Education of Georgia and the Free University of Tbilisi signed a memorandum of understanding to use Cardano and Atala to build an academic certification system for Georgia; in the same year, shoe manufacturer New Balance announced a pilot program on the Cardano blockchain , To track the authenticity of its latest basketball shoes.

Cardano’s organizational form is destined to be less decentralized, and the PoS network, although environmentally friendly, has given the “big money holders” disproportionate power to form in the network. Big Bitcoin users cannot disrupt the network unless they also control 51% of the network’s computing power to perform a “hash attack”, which is already very difficult at the moment. However, large currency holders can launch an “attack vector” against the PoS network by controlling 51% of the pledge amount. Currently, more than 2,656 staking mining pools control 71% of Cardano’s total issuance of ADA.

Cardano’s centralized organization has also brought it a scandal. In July 2018, Emurgo business personnel in China accused Emurgo in the ADA large group of using ICO money for public prostitution and other profligacy, but they were very stingy in paying the cost of the company’s business. An offline meeting can only pay 40,800 yen. (Equivalent to more than 2500 yuan) budget.

Cardano therefore fell into criticism, and people also saw the gap between it and Ethereum at that time. When Ethereum is brewing the ecosystem of games, DeFi, NFT, etc., Cardano still only has a main network. For the C-end token holders who support it, there is no other use other than using ADA as a tool to earn staking revenue.

Today, Cardano wants to use smart contracts to fight a “turnaround”, one of the goals is DeFi.

The currency holders are very happy, but it should be noted that its rival, Ethereum, is already the king of the smart contract field. DeFi, chain games, and NFT are blooming everywhere, and the market value of ETH has more than 380 billion U.S. dollars. In addition, blockchain network rookies with smart contract functions such as BSC, Polygon, Solana, and Polkadot have appeared in the market one after another. What is the chance of Cardano winning?

In addition to the market value advantage, another advantage of Cardano is the development ability. It can be regarded as an academic representative of the encrypted asset and blockchain research and development circles. It has a highly organized team of engineers and scholars and has published more than 100 articles on the underlying technology. Scientific papers. However, the test is still the test. Can Cardano, whose landing ability has been questioned, keep up with the ever-changing rhythm of the DeFi track? For ADA, it seems too early to talk about value investing.


Posted by:CoinYuppie,Reprinted with attribution to:
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