In August 2021, Cardano became the third most valuable digital currency in the world by market capitalization, behind Bitcoin and Ethereum. ADA has increased by more than 1300% in 2021 and 130% in August alone. As excitement grew ahead of the smart contract launch, it broke the $3 mark for the first time in early September.
With the introduction of smart contracts, ADA prices have since fallen below $3, but as long as smart contracts are implemented, they will continue to rise exponentially. In this section, we’ll discuss what ADA smart contracts are and why these could revolutionize this cryptocurrency.
What are smart contracts?
On a blockchain, smart contracts are programs that run when predetermined conditions are met. Automated agreements allow participants to be immediately certain of outcomes without having to wait around for an intermediary to complete the process. Automated workflows can also trigger the next action when certain conditions are met.
What Are ADA Smart Contracts?
Alonzo is the code name for the major upgrade (considered a hard fork) that will add smart contract functionality to the Cardano network. The blockchain technology behind ADA records and tracks the exchange of information, just like that used by all cryptocurrencies.
Cardano will see three major upgrades thanks to smart contracts:
Decentralized Finance Applications (DeFi): They are applications that enable peer-to-peer transactions between sellers, buyers, and lenders without the involvement of middlemen, such as banks or brokerages.
Non-Fungible Tokens (NFTs): With the Alonzo update, the Cardano platform will be able to mint NFTs. An example of an unique digital asset is a sport card that contains a digital signature demonstrating its ownership.
Gaming: Gamers will be able to purchase, own, and sell in-game assets using NFTs.
Cardano’s smart contracts are developed using Plutos, a programming language. Cardano’s testnet already included it, allowing developers to test and build their apps before they were released for public use.
What is Plutus?
Plutus uses the native Cardano programming language, Haskell. Plutus and Haskell use the same code base for off- and on-chain development. This means that at the core, the coding is identical so that there will be no complications with programming languages when developing smart contracts. That allows Plutus contracts to become even more straightforward and permits testing, which will allow developers to perfect their products for much more intensive loads such as hosting large institutions or governments.
The 12th September event:
The event was live streamed on YouTube
The company ended by announcing a live stream with the development team on September 12th and saying:
We’re on our way. Remember, this may be the end of one long journey. But it’s the start of an exciting new phase in our development as a smart contracts network. We’ll have lots to share over the months ahead as our exciting ecosystem continues to grow.
