Cardano (ADA) rose above $2 for the first time in almost three months after the project’s lead developer revealed an anticipated September release date for a planned “Alonzo” update, which would include smart contracts.
The capability of smart contracts will enable Cardano to include a wider array of decentralized applications such as automated cryptocurrency lending and trading platforms that are sometimes referred to as decentralized finance (DeFi) platforms. With the upgrade, the network will be better positioned to rival Ethereum, which presently has smart-contract capabilities as the leading blockchain.
#Cardano’s native token $ADA rallied on the back of Alonzo Purple announcement highly anticipated Hard Fork Combinator [HFC] event was announced for 12th Sep by Nigel Hemsley Head of Delivery & Products at IOHK set in motion price has been reflecting the confidence of the traders
— RESEARCH 24/7 (@smallcappick) August 14, 2021
ADA Inches Back towards All-Time High
ADA was trading at $2.31, its all-time high, on June 14th, but now it is trading at $2.08, the highest price since mid-May. There has been a 16% increase in the last 24 hours. In the recent price rise, Cardano’s market capitalization has been pushed to around $65 billion, placing it in a tie with Binance Coin (BNB) and Tether (USDT) for the third-highest market value among all cryptocurrencies, with bitcoin (BTC) and ether (ETH) occupying the first and second positions respectively (ETH).
In a video posted by Cardano’s head of delivery, Nigel Hemsley, it was stated that the Alonzo update will be live on “Monday, September 12th.” It turns out that September 12th is a Sunday this year, making the data inaccurate. Later in the day, the developer tweeted that the platform’s goal date for the update was “September 12th.”
Cardano was created by Ethereum co-founder Charles Hoskinson, though it is an entirely different blockchain with different goals and uses than Ethereum. Cardano has seen a surge in investor confidence as they gear up for the release of smart contracts later in September.
How Will Cardano Smart Contracts Work?
Cardano (ADA) is a decentralized, open-source smart contract platform with a Proof of Stake (POS) consensus mechanism. The main feature of Cardano (developed in 2015 by Charles Hoskinson and Jeremy Wood) is that it is based on peer-reviewed research. To put it another way, Cardano is coded by verified, recognized experts rather than initiatives like Ethereum, which are based on code developed by the community.
A smart contract is a blockchain-based contract that runs automatically according to defined rules.
The name Alonzo is based on Alonzo Church, a prominent mathematician in the area of computer technology who made many crucial discoveries. The Alonzo hard fork, which will add smart contract functionality to Cardano, is being named after him, and the Cardano team is honoring him by naming the fork after him.
Cardano will eventually provide Cardano developers and developers using other platforms like Ethereum and Tezos the opportunity to build their own bespoke smart contracts on Cardano. All kinds of advantages will accrue to the network with this new system. Around 70% of ADA token holdings are pledged, ensuring strong network security. One of Cardano’s major benefits is its decentralized staking.
The Marlowe programming language is one of Cardano’s most notablecharacteristics. Cardano development site asserts that Marlowe is an e-contract language specifically created for financial contracts, making financial contracts easily translatable into writing using this programming language. The special-purpose nature of Marlowe contracts allows them to be simpler to read, write, and comprehend.