If you’re new to the world of cryptocurrency, you’re likely more familiar with Bitcoin and Ethereum than with Cardano. However, experts will say that Cardano – its native ADA virtual currency – is a cryptocurrency to watch out for, having recently become the third largest cryptocurrency in the world. With an estimated market capitalization of around $80 billion (approximately Rs. 5.87,974 crores), Cardano is in an upward spiral. Prices doubled in just one month. Cardano is a blockchain invented in 2015 and is based on a proof of bet system. To validate a transaction, miners are required to place the cryptocurrency they hold as a ‘bet’.
And now, it looks like Cardano’s dream race will continue to hold as he’s on the anvil of a major update in the form of ‘Alonzo hard fork’. So what does the software update offer? Well, the Alonzo update will allow users to create and deploy “smart contracts” on the Cardano blockchain. Smart contracts are computer codes that will perform functions when predefined conditions are met.
This update will launch Cardano against Ethereum, which is considered its biggest competitor. Updating is an important part of Cardano’s development, which is divided into five stages – Byron, Shelley, Goguen, Basho and Voltaire. Cardano is currently at the end of the Shelley era. Its entry into the Goguen era will be marked by the introduction of the aforementioned “smart contracts”.
The Alonzo or hard fork upgrade will be divided into three phases – Alonzo Blue, Alonzo White and Alonzo Purple. Each of the levels involves several tests for ‘smart contracts’. Developers will find and remove blockchain bugs before the official move to the new era.
Cardano’s official website states: “With the integration of smart contracts, the Goguen era represents a major step forward in the capacity of the Cardano network.” This explains that while the Shelley era decentralizes the core of the system, Goguen adds the ability to build decentralized applications (DApps).
And it’s not just “smart contracts” that the Goguen era will offer. “The addition of a multi-currency ledger will extend the Cardano’s usefulness even further, allowing users to create new tokens with native support,” says the site.
This will lead to the creation of fungible and non-fungible (NFT) tokens, as well as “the creation of new cryptocurrencies in Cardano and the tokenization of many types of digital and physical assets,” said the Cardano Foundation.
The price of Cardano in India was around Rs. 218 and the price of Ethereum in India was around Rs. 2.5 lakhs on August 28th.