Given Ethereum’s scalability issues, alternatives to attract projects continue to emerge. These include Solana, Tezos, and Near. On the other hand, Cardano’s efforts to build a dApp ecosystem are more deliberate.
Cardano was founded in 2015 and has grown cautiously since then. Cardano’s strategy includes peer review, with the parent company IOHK (Input Output) working with several universities in the field of research and development.
This approach differs from the normal way of software development, where new features are introduced and taken over after members have given their consent.
SEE ALSO: Inside Cardano’s plans for Africa
Therefore, the Cardano ecosystem has grown in phases.
- in the Byron phase, Cardano was released to the public in 2017 and only supported transactions in ADA, its native token
- That Shelley phase in 2020 allowed the owners to put ADA on the proof-of-stake network
- The ongoing Goguen Stage will add support for smart contracts and let applications issue native tokens
As part of the Goguen Phase, the blockchain undergoes a hard fork known as the. referred to as Alonzo hard fork. This is named after a mathematician named Alonzo Church, who was one of the most important figures in the history of computer science.
The most important thing about the Alonzo hard fork is that it introduces smart contracts. This way people can develop dApps on Cardano, which means that the hottest blockchain use cases like DeFi functionality and NFT services become possible on Cardano.
However, Cardano focuses on even more areas:
“Many possible solutions and applications include blockchain-based transfers, more cost-effective supply chain management, IoT monitoring, decentralized exchanges and much more that has yet to be created by entrepreneurs.”
The Alonzo hard fork also means that Cardano will step into the decentralized financial landscape currently dominated by Ethereum, Binance, Solana and Polkadot.
In anticipation of an influx of projects from the other ecosystems, Cardano built an ERC-20 converter that will allow Ethereum tokens to be stored on their blockchain.
Especially unlike other platforms that require users to lock their assets for a period of time, Cardano’s staking allows users to generate passive income without having to lock their assets. This freedom can make Cardano an attractive staking option for many users.
The hard fork is to take place in around 5 phases, starting in June 2021 and culminating with the provision of the new changes to the Cardano mainnet in September 2021.
LITERATURE RECOMMENDATIONS: [WATCH] World Mobile from East Africa announces the launch of its utility-based World Mobile Token ($ WMT) on the Cardano blockchain
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