Cardano (ADA) takes the next step for complex smart contracts

In 2021, Cardano is one of the absolute winners with price gains of now 1,000 percent since the turn of the year and ADA was able to positively decouple from the overall market during temporary price corrections of Bitcoin (BTC). The reason for ADA’s continued soaring is believed to be Cardano’s own blockchain, which expanded its technological potential on March 1st with the upgrade Mary. 

Cardano generates a lot of trust in the crypto industry with maximum decentralization, and the blockchain demonstrates its future-proofing with low fees and high throughput. Smart contracts are so far only rudimentary possible with Cardano at direct and at this construction site now reports IOHK as the company behind ADA via Twitter an optimistic news.

With the upgrade Alonzo and a testnet of the same name, complex smart contracts will enter the test phase at Cardano at the latest from the beginning of May and these functionalities will then be available in the mainnet for ADA in August. What may sound technically boring is actually a decisive move in the competition for who will become the top dog in the booming DeFi industry. Right now, Ethereum (ETH) and the Binance smart chain are competing for DeFi supremacy. With Alonzo, Cardano then hopes to see an entire ecosystem of projects with DeFi in focus develop around ADA and bring liquidity accordingly.

Read more about Cardano and find the most important financial news with our companion app Born2Invest.

DeFi race – Cardano wants to challenge Ethereum

The competition with DeFi is currently intensifying and Ethereum is finding it increasingly difficult to defend its 2020 still unchallenged number one position as the basis of DeFi due to high transaction fees of at times even more than $40. Depending on the indicator, Binance with BSC has already become the market leader in terms of DeFi, but there some experts are bothered by the lack of decentralization of the blockchain. Cardano does not have to reckon with that shortcoming. 

From a German perspective, IOTA also wants to enter the DeFi segment, but cannot do so on its own until the end of 2021 at the earliest with IOTA 2.0 aka Coordicide. With IOTA, Cardano founder Charles Hoskinson had most recently started a verbal feud over the definition of “fee-free”.

With Ethereum, Charles Hoskinson had once established his reputation as a co-founder, and with Ethereum, he is now looking for a so-far disparate competitor for Cardano. Polkadot (DOT) is another DeFi competitor in play whose backing from China is often underestimated in Germany.

Conclusion: DeFi – battle for the best-funded ecosystem

From a neutral observer’s perspective, it is hard to predict which altcoin we will see symbolizing DeFi by the end of 2021. Ethereum could succeed in taking the decisive technological step with ETH 2.0, BSC is building on Binance’s customer base, Cardano and Polkadot are increasingly tying up developers and cooperation partners, and IOTA is not completely out of the running either. Away from technological progress announcements like Alonzo at Cardano, trust and innovation are one yardstick, provided liquidity the easiest factually measurable indicator.

__

(Featured image by QuoteInspector.com CC BY-ND 2.0 via Flickr)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.