O hard fork Alonzo is the most important update in the history of Cardano, which aims to install a platform for smart contracts called Plutus. This platform aims to bring improvements beyond the benefits of Ethereum, including with regard to security, which can be considered an important positive point in the area of Decentralized Finance (DeFi).
It is estimated that approximately US$ 284 million has been stolen by hackers through attacks on DeFi projects since the year 2019, according to data collected by the Messari platform. This amount corresponds to approximately R$1.5 billion.
In addition, the update also aims to introduce an easier programming language so that developers can act more easily within the platform.
ALONZO UPDATE: We’re delighted to announce that we have now successfully spun up #AlonzoPurple and have begun today the new user onboarding process👍 💪
1/12$ADA #Cardano @CardanoStiftung @Cardano @emurgo_io @IOHK_Charles
— Input Output (@InputOutputHK) August 6, 2021
The hard fork Alonzo had all its planning divided into stages, the first one starting in June 2021. Each stage was called by a certain color. Alonzo Blue and Alonzo White have already been fulfilled.
The first phase, Alonzo Blue, had 50 developers to test how the network behaves. It was a testnet phase seeing what would or would not work in the project.
While the second phase, Alonzo White, had a greater number of developers, totaling 500 to leverage the work regarding Decentralized Applications. Cardano commented on the completion of these two phases, which were successfully completed.
At this moment, the most important phase is being fulfilled: Alonzo Purple. At this stage, there is a public implementation so that developers can use the network and the service developed, providing the optimization of the process.
Upon completion of Alonzo Purple, the use of Cardano’s DeFi protocol is promised to all people. It is noteworthy that other final phases were planned for the month of September: Alonzo Red and Alonzo Black. However, they are minor phases referring to small adjustments.
Each phase was an initial test so that in the next phase, what had already been done could be achieved in the next phase, following a methodology that avoided errors, before advancing in the process.
What will happen to Cardano’s price after the implementation of the Alonzo hard fork?
The goal of the update is to bring smart contracts to the ADA network, thus adding the ability to build decentralized applications (DApps).
The end of the Alonzo update brings positive expectations for Cardano’s price appreciation for the following reasons:
- In other Cardano updates, the currency appreciated as a result. Just like Ethereum has valued considerably in a short span of time with its recent update. We cannot rule out that the same could happen with the ADA.
- The possibility of dApss migration from Ethereum to Cardano is foreseen, which means that whoever is an Ethereum user will be able to migrate to Cardano in a simple way, and Cardano itself will offer the tool to perform this task. Remembering that Ethereum is the largest existing DeFi protocol network currently and this may reflect the appreciation of the ADA.
Today, Cardano is worth around $1.45 and has traded above $2 with past news of updates.