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Cardano (ADA) Alonzo Hard Fork: Here’s why it’s up big today (2021)

Cardano

Cardano (ADA) is among the hottest tokens in the world of cryptocurrency today. Cardano (ADA), now the third largest cryptoasset by market capitalization, posted a new high of $2.97 earlier today, falling short of the $3 mark. Earlier this week, the altcoin surpassed its early ATH of $2.49.

Cardano is experiencing a price surge accompanied by a lot of on-chain updates and development before its biggest upgrade which is Alonzo.

With the Alonzo hard fork, the much-anticipated smart contract implementation will be implemented on the Cardano network. The smart contract is a computer program that runs when predetermined conditions are met. The Alonzo update will allow anyone using Cardano to create and deploy smart contracts, which will create a decentralized application platform (dapps).

As a result of the system update, which is projected to be completed in the third quarter, the Shelley era of Cardano will end and the Goguen era will begin.

It is still unclear when the Alonzo hard fork will end; however, developers across the network have been working hard on testnets and following a roadmap based on eras.

Cardano

A strong rise in trading volumes and profit margins are driving the price of Cardano’s (CRYPTO:ADA) Ada token today. Many top cryptocurrencies have recently enjoyed strong bullish momentum despite experiencing some volatility during 2021’s trading.

The ADA token, which is part of Cardano’s Ada platform, has risen as one of the best-performing crypto assets of the year, and the rally of the broader market is accompanied by planned listings on new exchange platforms and the rollout of new features. 

The United States’ new infrastructure bill had worried some analysts and cryptocurrency enthusiasts that it would include new regulations that would make it harder or less profitable to trade cryptocurrencies, but it looks like that won’t be the case. The recent gains for cryptocurrencies seem to be due to this potential risk factor being taken away. 

Cardano is also enjoying positive momentum ahead of ADA’s upcoming listing on Japanese cryptocurrency exchanges, due to take place on Aug. 25. This is in addition to the overall bullish sentiment in the cryptocurrency space. A new update is also expected to roll out in September that will enable smart contracts on the Cardano blockchain.

Currently, Cardano’s market capitalization is about 94 billion dollars. In terms of market capitalization, the Ada token has risen roughly 1,420% year to date, propelling it to third place behind Ethereum and Bitcoin. 

During the last month in particular, the cryptocurrency market has enjoyed strong bullish momentum. Cardano has increased by 126% across the stretch, while Bitcoin is up roughly 52% and Ethereum is up 62%.

The market for Cardano and other cryptocurrencies is very much dependent on speculation, but Ada is poised to experience some major catalysts in the near future. It is definitely worth keeping an eye on the upcoming upgrade fork that will enable smart contract functionality and other decentralized finance features.

Time periods in Cardano’s Life

The development roadmap for Cardano is divided into six main stages, or “eras,” each aimed at enhancing the functionality of the network.

  • Byron – Provides the foundation code for Cardano. It offers users the ability to exchange ADA currency, named after revolutionary programmer Ada Lovelace, and mine ADA with their proof-of-stake consensus algorithm.
  • Shelley – Decentralizes the network by incentivizing users to host their own nodes. In this era, a variety of individuals are involved in running the nodes rather than a small, centralized group.
  • Goguen – enables developers to create decentralized applications on top of Cardano using smart contracts.
  • Basho – Optimizes the performance of the Cardano network so that it can scale and process more transactions. Furthermore, this era introduces side chains, which are a means of scaling a network by using multiple blockchains.
  • Voltaire – Obtains self-sustaining governance through a voting and treasury system. By using their funds, users will be able to influence the network’s future development. 

Currently, Cardano is in the final stages of the Shelley era. A number of new features were added to Cardano during this development phase, including a proof-of-stake protocol known as Ouroboros, a delegation and incentive scheme that rewards users and improved support for hard wallets.

Byron and Shelley are just a few of the protocols (such as Cardano and Byron) that will be combined onto a single ledger to ensure smooth transitions across phases. As developers of Cardano saw, it was a problem when hard forks were agreed upon that a considerable segment of the community didn’t change over to the new version after they had been agreed upon.

Cardano (ADA)

The reason for their refusal could be disagreement with the changes, or simply apathy. The combinator allows multiple versions to run simultaneously, so updates are frictionless and transitions are seamless. There would be no opt-in for the updates, but rather an opt-out.

The comeback of Almanzo

Each color-coded phase of the Alonzo hard fork has its own individual phase.

  • Blue Alonzo
  • White Alonzo
  • Purple Alonzo

There are also two smaller phases following Alonzo Purple, known as “Alonzo Red” and “Alonzo Black” respectively. All of these phases have the same objective, namely adding users to the testnet and identifying problems.

With over 50 technical participants, pretty much all stake pool operators (SPOs), Alonzo Blue introduced smart contracts. We found and fixed validation errors as well as some simple fixes during this phase. As Alonzo goes through testing, it is expected that these standard bugs will appear and be fixed.

Alonzo’s new smart contract capabilities, which are named after famed computer scientist Joseph Goguen, will allow developers to build dapps for the first time on the Cardano network in the Goguen Era. 

dapps can operate without middlemen thanks to smart contracts. During this phase, a smart contract building platform called Plutus Platform will allow both technical and non-technical users to build dapps.

Where does Plutus come from?

Cardano’s native language, Haskell, is used by Plutus. A common code base unites Plutos and Haskell for front-end and backend development. As a result, smart contracts can be developed across all programming languages since the coding is identical at its core.

The new Plutus contract will simplify and enable testing, allowing software developers to better prepare their products for processes like hosting government agencies or large institutions.

Summary 

Cardano has climbed 126% over the last month, while Bitcoin has risen approximately 52% and Ethereum’s price per Ether token has risen 62%.

The market for Cardano and other cryptocurrencies is very much dependent on speculation, but Ada is poised to experience some major catalysts in the near future. It is definitely worth keeping an eye on the upcoming upgrade fork that will enable smart contract functionality and other decentralized finance features.

Source: Crypto Capital Venture
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