News • 3 min read
By Camilla Marziani
After the recent Alonzo hard fork announcement, Cardano (ADA) hit an all-time-high and is ranking among the top cryptocurrencies in terms of market cap. What will change and what does the upgrade mean for you?
In case you haven’t read our Deep Dive on Cardano: it is a project with the objective of providing the masses with a secure, scalable and transparent network. That is also why this open-source project has always been very transparent about its plans for the future, including clear steps and a detailed roadmap. After Byron, Cardano’s era of foundation and the Shelley era with a focus on decentralisation, the Alonzo rollout represents the most relevant phase in the Goguen era of smart contracts.
The Alonzo hard fork is scheduled to take place on the 12th of September, and will enable smart contracts on Cardano. Smart contracts are self-enforceable and immutable contracts written in computer code, and this function is set to open a new and broad range of possibilities for the Cardano blockchain, including payments and peer-to-peer transactions, but also crowdfunding, auctions and more.
This also means that DApps (decentralised applications) will be able to run on Cardano for the first time. Therefore, the update is paving the way to making decentralised finance (DeFi) usable in everyday applications available to everyone, in line with Cardano’s goal to bring blockchain technology to the masses.
Cardano and Ethereum have been often compared to each other. However, thanks to the Alonzo hard fork, Cardano, which was once considered just another potential competitor, could now evolve into a serious contender to Ethereum’s leadership. If everything goes as planned with the upgrade, Cardano could prove a safe and flexible alternative to Ethereum when it comes to running smart contracts.
Ethereum smart contracts are very popular, however, the implementation of smart contracts on Cardano will offer users an alternative that is more environmentally and user-friendly, features a higher number of TPS (transactions per second: 257 for Cardano and 15 for Ethereum), lower fees and similar use cases.
Still, Ethereum is also on its way to providing these features, which will be available for ETH users once the switch to Proof of Stake (PoS) is completed. While the Ethereum London hard fork has set the network to switch to Ethereum 2.0 in the future, Ethereum is still running on Proof of Work (PoW), which requires high amounts of energy. Cardano, on the other hand, is already using a Proof of Stake consensus algorithm, making it, at least for the moment, more sustainable than Ethereum, whose switch to PoS is in the works, but is unlikely to happen this year. It will remain interesting to see how Ethereum and Cardano develop in terms of mass adoption.
The Alonso hard fork will bring long-anticipated changes to Cardano, enabling users to create and deploy their own smart contracts. It has been open for testing for a while now and if all goes according to plan, the mainnet deployment (which had initially been planned for August) will take place on the 12th of September.
If you’re a Bitpanda user, among the recent Cardano buyers or hodlers, or you’ve simply been keeping a Cardano savings plan: there is no reason to worry about a thing. We at Bitpanda will take care of the update and make sure to process the hard fork when it’s available. We will need to disable deposits and withdrawals for the duration of the update, but trading will not be affected.
Buy Cardano (ADA) on Bitpanda!
The information contained in this article is for general information purposes only and is not investment advice in any form.
Why your money is safe with BitpandaRead more
News • 2 min read
Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
The information we collect is used by us as part of our EU-wide activities. Cookie settings
As the name would suggest, some cookies on our website are essential. They are necessary to remember your settings when using Bitpanda, (such as privacy or language settings), to protect the platform from attacks, or simply to stay logged in after you originally log in. You have the option to refuse, block or delete them, but this will significantly affect your experience using the website and not all our services will be available to you.
We use such cookies and similar technologies to collect information as users browse our website to help us better understand how it is used and then improve our services accordingly. It also helps us measure the overall performance of our website. We receive the date that this generates on an aggregated and anonymous basis. Blocking these cookies and tools does not affect the way our services work, but it does make it much harder for us to improve your experience.
These cookies are used to provide you with adverts relevant to Bitpanda. The tools for this are usually provided by third parties. With the help of these cookies and such third parties, we can ensure for example, that you don’t see the same ad more than once and that the advertisements are tailored to your interests. We can also use these technologies to measure the success of our marketing campaigns. Blocking these cookies and similar technologies does not generally affect the way our services work. Please note, however, that while you’ll still see advertisements about Bitpanda on websites, the adverts will no longer be personalised for you.