Although ADA has since fallen below the $3 mark, with the introduction of smart contract functionality, it is poised to continue its meteoric rise. Here, we’ll look at what ADA smart contracts are and why they could be a game-changer for this cryptocurrency.
What Are ADA Smart Contracts?
Alonzo is the code name for the major upgrade (considered a hard fork) that will bring smart contract functionality to the Cardano network. Like all cryptocurrencies, ADA uses blockchain technology to record and track the exchange of information.
Smart contracts are small pieces of code stored on a blockchain that execute automatically when certain conditions are met. Their magic lies in making the blockchain programmable, giving developers the ability to create decentralized applications on top of Cardano.
Smart contracts will bring three major upgrades to the Cardano ecosystem:
Decentralized Finance (DeFi) Applications: These are financial applications that work without middlemen such as banks or brokerages, allowing peer-to-peer transactions between sellers, buyers, and lenders. Non-Fungible Tokens (NFTs): With the Alonzo update, the Cardano platform will be able to mint NFTs. These unique digital assets can represent anything from artwork to sports cards that contain digital signatures verifying ownership. Gaming: This functionality will allow gamers to buy, own, and sell in-game assets using NFTs.
Plutus is the programming language used for Cardano’s smart contract development. It’s already been deployed on Cardano’s testnet, allowing developers to build and test apps before going public.
When Do ADA Smart Contracts Go Live?
September 12th, 2021, is the launch date for Cardano’s long-anticipated smart contracts. Input Output HK, the company behind Cardano’s smart contract platform, confirmed the date on Twitter, saying it had successfully submitted an updated proposal.
The proposal will trigger the third and final hard fork combinator event on September 12th, resulting in the full implementation of smart contract capabilities on the Cardano blockchain.
The company ended by announcing a live stream with the development team on September 12th and saying:
Smart Contracts and the Future of Cardano
Smart contract functionality on the Cardano blockchain is a game-changer, placing the cryptocurrency on the same level as Ethereum, Solana, and Zilliqa. The upgrade will allow Cardano users to perform transactions such as buying, selling, and trading without intermediaries. As a result, investors are also betting the upgrade will push Cardano’s price to new heights. In the meantime, we’ll have to wait and see if Cardano’s venture into the world of smart contracts pays off.
