The Cardano network is in the watershed stage of its network development and upgrade. The ongoing phase of the protocol roadmap is the Goguen phase, which introduces smart contracts into the network. This is the third phase of the road map after Byron and Shelley. The Goguen stage is divided into three stages, Allegra, Mary and Alonzo.
Allegra updated live Last December 16th, Mary update was deployed on the mainnet on March 1st earlier this year. This leaves the Alonzo upgrade, which is further divided into three different stages, named blue, white, and purple. Although it is planned to finally deploy the Alonzo upgrade on the mainnet in August 2021, the release of this phase seems to be delayed because Alonzo is still in the testnet part of its progress.
Since Alonzo brings the long-awaited smart contract features to the network, the community has been eager to see them implemented because it requires decentralized applications (DApps) to be enabled on the blockchain.
On July 15, Input Output HK (IOHK) announced on Twitter that their Alonzo testnet hard fork From Alonzo Blue to Alonzo White nodes, it is allowed to expand its smart contract functions on the platform. Although Alonzo Blue provides smart contracts, its availability is limited to a group of insiders. Alonzo White now allows operators of equity pools, web developers and 500 validators will be able to test this feature in the future. The Alonzo White testnet is scheduled to run for two to four weeks before transitioning to the final stage of the Alonzo update, Alonzo Purple.
Cardano’s network is in the third stage of its development, called the Goguen update, named after the American scientist Joseph Amadee Goguen. This update integrates smart contracts into the network, allowing the creation of DApps. In the first and second phases, the network has been upgraded by Byron and Shelley, focusing on the establishment and decentralization of the network, respectively.
After completing the Goguen phase, which was originally supposed to be completed in August 2021, the blockchain will go through the fourth and fifth phases of the project’s roadmap, named Basho and Voltaire.Banana Club promote Network scalability and interoperability, and Voltaire promise By transferring the entire governance mechanism to network participants, the network is “truly decentralized” and is no longer managed by IOHK.
Optimistic forecast failure
Although the network promised a well-structured roadmap and phase updates, it raised some questions about its current utility. Cardano founder Charles Hoskinson (Charles Hoskinson) Expected On July 27, 2020, there will be hundreds of assets running on Cardano in one year, as well as thousands of DApps and “a lot of interesting projects”.
In the following year, people put forward this optimistic forecast, pointing out that the network is far from the level of utility that Hoskinson predicted a year ago. At the same time, many members of the Cardano community defended the network, saying that Hoskinson’s statement was only a prediction, not a promise. Hoskinson himself responded to critics, stating that “Cardano has thousands of assets.”
he still Released The YouTube video on July 8 claimed that the project is proceeding in accordance with the framework of the established roadmap, and the entire network has sold more than 10 million U.S. dollars in non-fungible tokens (NFT). He added that once Alonzo White is deployed on the mainnet, developers will be able to launch DApps and NFTs on the network. Ben Armstrong, creator of youtuber and BitBoyCrypto.com, told Cointelegraph:
“The Cardano team has not given up on the smart contract release period starting in September. Considering the progress of the Alonzo White hard fork, I don’t expect any further delays. In other words, Cardano’s methodical approach It means they will postpone the deadline to avoid regressing on a bad release.”
Marie Tatibouet, chief marketing officer of the cryptocurrency exchange Gate.io, told Cointelegraph that the roadmap is still intact. Regarding the question raised by the Cardano network in terms of utility, Tatibouet believes that since the main proposition of Alonzo’s upgrade in the Goguen phase includes the implementation of smart contracts on the network, it is impossible to judge its lack of utility until the smart contracts are fully integrated.
Armstrong further talked about the dilemma of smart contracts hindering the growth of the network, he said: “This is a chicken and egg situation. You need smart contracts to really promote DApp development, but you also need killer DApps to attract more developers to enter the field. There are many DApps on Ethereum waiting for Cardano.”
He even mentioned that since the current demand for blockchain developers is very high, poaching has become a big problem. “When the ICP attacked Coinbase this year, Charles was open to how DFinity could poach some of his top engineers. I think this will cause some delays in Cardano-specific development across the industry.”
Nearly 72% of ADA is pledged
In the current state, the inefficiency of the Cardano network may affect an important aspect: the pledge of its native tokens, haveAccording to the data, nearly 72% of ADA tokens are mortgage on the Internet, The total amount is about 30 billion U.S. dollars In a market value of approximately 42 billion U.S. dollars. This includes 2,745 active pools and a total of nearly 716,000 staking addresses.
Tatibouet talked about the current utility of the ADA token itself. He said: “As of now, the two main functions of the ADA token are mortgage and governance. In this regard, this is a very good sign that so many holders are The network is confident and bet their tokens in the ecosystem.”
She also added that it is important to remember that mortgage ADA is more flexible than the usual mortgage mechanism of other agreements. It allows pledgers to access their tokens at any time they choose, because the tokens are not completely locked by the pledger, thus increasing the convenience of staking on the network. Armstrong further believes that the integration of smart contracts will affect the high staking ratio in the network, and explained the reasons for the staking of tokens:
“They are hoarding ADA not only for future gains, but also to have a say in Voltaire’s final governance. Even in the current state of smart contracts, you can buy NFTs and play games. But once ADA is in Establish your position in the smart contract and you will see a significant drop in the number of bets.”
Regarding the possibility of launching DApps on Cardano after the implementation of smart contracts, Cardano also tried to propose real-life practical programs through its network. In early April, IOHK cooperates with the Ethiopian government It aims to transform the country’s education system by using Cardano’s blockchain technology.
In July, Grayscale added ADA to its Digital Large Caps (GDLC), making it the third largest component of the fund’s basket after Bitcoin.Bitcoin) And Ethereum (Ethereum). Grayscale is regarded as a benchmark for institutional interest in the cryptocurrency market. Duc Luu, executive chairman of Spores Network, a Cardano-based NFT and decentralized financial market, told Cointelegraph:
“Cardano promises to achieve a greener blockchain footprint, lower gas fees and higher throughput. We believe this makes it an important place for NFT and mainstream adoption of DeFi, which is very important for institutional investors. Two areas of interest.”
When discussing the time for real-time utilities to enter the network, Luu further mentioned that he believes this will happen soon, adding: “Cool features like ERC-20 converters will allow rapid deployment of projects from ETH to ADA. Yes Many projects like ours are eagerly waiting for the release of Cardano smart contracts in the background.” He also predicts that within six months after the launch of smart contracts on the network, the Cardano ecosystem will undergo radical changes.
However, it is important for the Alonzo network upgrade to proceed as planned on the mainnet because it is highly anticipated in the community. Other upcoming blockchains, such as Binance Smart Chain (BSC), are growing rapidly, which may lead to some protocols being built on top of it.