The world’s fifth-largest digital asset by market value, the ADA, the cryptocurrency native to the Cardano network, trades sharply higher on Wednesday, 11th, after its founder announced that the activation of the use of smart contracts in the blockchain will be announced in the next days.
Charles Hoskinson, who is also one of the creators of the Ethereum network – today the main “competitor” of Cardano -, spoke about the subject in a Live broadcast on the social networks. According to him, the date of activation of the new blockchain functionality will be announced this Friday, 13. “We will announce when the Alonso update will happen and, when that happens, we will be able to run smart contracts on Cardano”, he said, adding that the update will take place before the “Cardano Summit” conference scheduled for September.
“With the revelation that the mainnet rollout is on its way, investors and cryptoactive enthusiasts alike have been excited by the hype that a supposedly superior blockchain infrastructure, with the ability to support the next generation of smart contracts, is on the way. horizon” Konstantin Anissimov, executive director of British brokerage CEX.IO, told Business Insider. “This has always influenced the stability of the ADA and is contributing to the continued increase in prices,” he added.
The expectation for the update had already been moving the price of the ADA cryptocurrency upwards for a few days, but the trend intensified. The ADA is currently trading at $1.88, the highest in nearly three months – still well below the digital asset’s historic high of $2.46. In the last 24 hours, that’s more than 20% of earnings and, in the last week, more than 38%.
The performance of the ADA surpasses that of its main “rival” in 2021. It accumulates almost 920% high in the year, against 342% of ether, the native cryptocurrency of the Ethereum network. Both win bitcoin, which adds up to 57% accumulated in 2021.
Smart contracts, or smart contracts, are contract systems used to execute transactions automatically without the need for a company, government, or entity as an intermediary. For example, suppose a person wants to send 10 units of ether to a friend, but this only happens on a certain date or after some specific event – to create this requirement, a smart contract is used. In other words, it is an imposed condition that, once reached, automatically executes a certain transaction.
By making transactions automatic, smart contracts are used in almost all decentralized applications that run on blockchain, such as NFT platforms, games, decentralized financial services (DeFi) protocols, among many others. Currently, the main networks for this type of application are Ethereum and Binance Chain, which serve as the basis for multi-million dollar markets and huge volumes of transactions every day. The ability to grab a slice of this industry is the reason for the high expectations of ADA investors.
In the case of Cardano, the development of the network is slower than that of competitors due to the desire of its creators, who opted for a more grounded process for changes that occurred quickly in other blockchains. The network’s team of developers, software engineers and researchers have published more than 100 scientific articles on the technology, with the aim of solving scalability issues and other issues that affect its predecessors and, thus, supposedly offering a better service.
The delay, on the other hand, left the Cardano network far behind its competitors, which today already largely dominate sectors such as NFTs and DeFi, especially the Ethereum network. Now, with the update, the network seeks to chase, but reaching the “rivals” will not be an easy task, since many platforms and technologies are quite advanced and, in a way, already consolidated in their current ecosystems.