By using blockchain technology, Cardano (ADA) claims to solve real-world problems. For example, it has worked with the Ethiopian government to monitor the educational progress of 5 million youth in its network.
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As a result of the initiative, students receive a forgery-proof proof of study, which can be helpful when looking for a job or studying abroad.
Cardano has taken a planned approach to its development. The team believes in extensive research and testing before deployment. Because of this, it took some time for Cardano’s Alonzo hard fork to deploy to mainnet. Alonzo Hard Fork is Cardano’s third major update in the Shelly era. The currency has five primary stages of development, commonly known as “Epochs” – Byron, Shelley, Goguen, Basho and Voltaire — All this will improve the overall functionality of the network. The platform’s last major improvement during the Shelley period, Alonzo, ushers it into the Goguen era.
The Alonzo update consists of three phases: Blue, White and Purple. They are followed by Alonzo Red and Alonzo Black, who will add more people to the networks and fix any problems that have arisen. Alonzo Blue will add smart contracts to the network, similar to those on the Ethereum network. Cardano’s smart contract capabilities are a major step forward, allowing it to compete with other programmable blockchains and greatly expanding the range of solutions available to its partners.
So how will Cardano be different?
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Cardano has a unique development environment, not only in terms of speed and decentralization. As in Binance Smart Chain and Polygon, most Ethereum competitors use Ethereum Virtual Machine (EVM), which means they can run the Ethereum code without any modifications. Solidity is a JavaScript-like programming language used for Ethereum and EVM-based networks.
Cardano will not support EVMs for the time being
Learn how ADA has the potential to redefine DeFi
Developers must create smart contracts in Plutus, a new and simple language for smart contracts, and in Haskell, a programming language that has been around since 1990 but has yet to see widespread use. Using Plutus instead of Solidity is fundamental to the development of Cardano’s ecosystem. On the one hand, this indicates that Ethereum dApps like Uniswap, Aave, Compound or any other Ethereum dApp will be difficult to port to Cardano. As a result, some users might be reluctant to switch to Cardano at the beginning due to lack of liquidity.
While Binance Smart Chain’s EVM compatibility suggests that all major dApps are clones of current Ethereum dApps, Cardano offers a fresh start for developers and users alike and is expected to be unique never-before-seen apps. Initial development may be slow, however, we can expect the next generation of DeFi to be developed on Cardano, which means dDevelopment of the next Uniswaps and Aaves, as well as additional applications yet to be envisaged. Additionally, it is likely that we will experience fewer application hacking incidents due to Plutus’ improved ease of development as well as its built-in security verification techniques.
In addition, yield farming was quite lucrative. Governance token projects need to entice users to use not only their platform but also Cardano; Consequently, they will reward tokens for basic tasks like holding ADA, providing liquidity on their platform, or even borrowing. Developers and users alike will benefit from the new Cardano DeFi ecosystem, which includes an all-new smart contract environment with its own unique tokens, projects, and features. The added benefit now is the wealth of information and expertise that Ethereum lacked when it launched.
Wrap up
Cardano and ADA may not increase in value with Ethereum, but competition in the smart contract sector is a good thing as it pushes all projects to improve their products and services for the benefit of their users.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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