Hard fork Alonzo is successfully implemented, but Cardano’s price retreats
The highly awaited Alonzo update was successfully implemented, which allows the implementation of smart contracts in the main network of . As informed by the developer IOHK, the update took place on Sunday (12), at 18:47 (Eastern Time) through the hard fork combinator (HFC) technology.
“The Alonzo update will bring highly anticipated features to through the integration of Plutus scripts into the blockchain. This will enable the implementation of smart contracts at Cardano, enabling a host of new use cases for decentralized applications (dApps) for the first time.”
ADA price drops after update
However, while there were high expectations around the upgrade and its impact on the price of the ADA, the cryptocurrency has retreated 7.20% in the last 24 hours after the upgrade.
As of this writing, altcoin is trading at $2.42. In other words, around R$ 12.60, at the current price in reais.
However, it is worth noting that, in general, the cryptocurrency market is down this Monday (13). The , for example, is under $45,000.
In practice, the Alonzo update puts Cardano on the path to enabling a number of new use cases, such as decentralized finance (DeFi).
However, it is likely to take some time for the network to host a thriving dApp ecosystem. This is because there are important sizing issues to be adjusted.
The developers themselves stated that some early dApps can be problematic and others unsafe:
“We can expect evildoers looking to take advantage through hacks, exploits and the like,” noted IOHK. “As a community, we need to be vigilant as our ecosystem matures. In fact, we believe that to mature across the industry, certification needs to be taken more seriously.”
As reported by CriptoFácil, Minswap, the first decentralized application of the Cardano test network, had concurrency issues when it was launched on testnet on September 4th.
The complications were attributed to Cardano’s method of settlement of transactions, known as the Extended Unspent Transaction Output (EUTXO).
Therefore, project teams such as SundaeSwap, Maladex and OccamFi have already started working on scaling solutions to achieve adequate concurrency for their dApps.
When these solutions are implemented, the network is expected to support a thriving DeFi ecosystem.
By Easy Crypt
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