At 6:44 pm this Sunday (12), Cardano (ADA) will start smart contracts implementing the hard fork Alonzo. But due to design issues, several decentralized apps have delayed their release, and Alonzo may go live with some smart “toy” contracts developed by the coin’s creator.
Smart contracts are self-executing pieces of computer code that lay the groundwork for decentralized applications such as decentralized exchanges and non-custodial lending applications. Alonzo puts Cardano face to face with other smart contract-enabled blockchains, like Ethereum, which introduced them in 2015.
Alonzo’s anticipation caused the price of Cardano (ADA) to soar earlier this month; the coin hit an all-time high of $3.09 when Cardano developer IOHK launched Alonzo’s testnet on September 2nd. But the price later dropped to $2.60 amid criticism that the upgrade struggled to process concurrent transactions.
The first Cardano dApp, a multi-polar exchange called Minswap, closed shortly after it launched because it struggled to process multiple transactions at once, which is “just what you need for DeFi,” according to Ethereum investor Anthony Sassano.
IOHK tweeted that these criticisms are “speculation (and let’s face it, total FUD and misinformation)” before saying that the way Cardano handles unspent transactions offers “greater security” and “fee predictability”.
Cardano fans are looking forward to another rally tonight, and Cardano founder (and Ethereum co-founder) Charles Hoskinson has promised that Alonzo will usher in “a new era of Cardano”.
Still, IOHK has not been able to eliminate its problems with a single tweet topic. Due to the issues, it seems unlikely that Alonzo will be released with any killer app. Several decentralized exchanges have said they will delay their launch until definitive solutions to the transaction bottleneck are found.
Since its launch in 2015, Cardano’s public image has relied heavily on his claim to rigorous technical research and testing. Protocol updates are peer-reviewed by a group of academics.
A problematic launch can be considered a big step backwards. In a YouTube stream on Wednesday, Hoskinson confirmed that “some smart toy contracts” the IOHK had developed would go live on day one.
*Translated and edited with the permission of Decrypt.co