Cardano (ADA) is presently the largest Proof-of-Stake (PoS) blockchain and the 3rd largest cryptocurrency on the planet based on market capitalization. While Cardano hit an all-time high of $2.8 on August 23, 2022, ADA is now in the news for yet another reason. The digital currency finally completed its Alonzo Purple public test and launched its smart contracts functionality in September.
Developers proposed that this move is going to bring significant improvement to the Cardano blockchain and hence lots of goodies to investment. But how is the new contract functionality going to help Cardano price grow? Is the long-awaited upgrade going to be worth it after all? Read on to see everything you need to know about the ADA smart contracts newly launched.
Once you are done reading to the end, and you agree Cardano will make a great addition to your portfolio, head on to AnycoinDirect.eu to buy ADA and get on the bandwagon straightaway. So, without wasting any more time, let’s get into the business of the day and learn a few things about the new Cardano smart contracts.
Cardano (ADA) Finally Launched Its Smart Contracts; What Are the Major Highlights?
Just like the ETH2 upgrade is for Ethereum, a smart contract launch is also a once-in-a-lifetime event for Cardano (ADA). And many people in the crypto community are expecting the move to change the Cardano blockchain for good. What are the important highlights in the Cardano smart contracts launch?
- Cardano (ADA) smart contract was slated and launched on September 12, 2022.
- More than 500 developer teams were already on ground even before the launch, and the IOHK’s director said they are already getting ready to build on Cardano.
- The Cardano (ADA) team and its contributors employ Plutus (a powerful application development platform), Marlowe (De-Fi-focused language), and Glow (dApps-centric language) to empower the Cardano smart contracts.
- At the announcement of the smart contract release date, the price of ADA went up significantly after a painful drop.
What Is a Smart Contract?
To better understand what to expect from the Cardano smart contracts launch, it will be best to know what a smart contract is in the first place. A smart contract is an automated digital agreement written in codes. It is the code that tracks, verifies, and executes the binding transactions of a contract between various parties. When the agreements in the contract are met, the transactions are executed automatically. Smart contract transactions are conducted on a blockchain.
Smart contracts are reliable and self-executing. They do not require the involvement of third parties to do what they need to do. The code for any smart contract is stored on and distributed across a decentralized blockchain network. That way, they are very transparent but also irreversible.
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ADA Smart Contracts
The code name of the new major upgrade that brought smart contract functionality to the Cardano network is called Alonzo. It has been a long-awaited project many investors have been looking forward to. With the launch of smart contracts on the Cardano network, it will be making the blockchain programmable, making it possible for developers to create decentralized applications on top of Cardano.
ADA smart contracts will bring three major upgrades to the Cardano ecosystem, including:
- Decentralized Finance (DeFi) application. These are financial applications that work independently of any middleman, such as banks or brokerages. Instead, it allows peer-to-peer transactions between individuals without any issues.
- Non-Fungible Tokens (NFTs). Thanks to the new Alonzo update, Cardano will now be able to mint NFTs on its platform. NFTs can represent anything from sports cards to artworks that contain digital signatures verifying ownership.
- This functionality will make it easy for gamers to buy, own, and sell in-game assets using NFTs.
What It Means For Investors
One might be wondering what the investors might stand to gain from this recent move by Cardano. Well, the major thing is that it has the potential to pump the price of ADA. Since August, when the smart contracts launch was announced, Cardano’s (ADA) price has increased by over 65%. And this was instrumental to the moving up of Cardano to the third-largest cryptocurrency based on market cap. The price reached an all-time high of $2.8 shortly after the announcement. Now, Cardano is listed on virtually all top cryptocurrency exchanges.
Another thing about the new Cardano upgrade is that the blockchain network has been under fire recently, especially because of the delay in development. It indeed took a lot of time to launch the smart contracts, and many critics have capitalized on that delay.
But now that the smart contracts are finally here, they will not only be of great benefits in and of themselves but will also be reigniting the candle of hope in investors as to how much they can trust that Cardano can deliver.
The upgrade will also come as a huge advantage to users as they will now be able to perform transactions such as selling, buying, and trading without intermediaries. Furthermore, with all that has been happening to Cardano after the launch of the smart contracts, one can predict that it is indeed a good time for Cardano (ADA). Price is increasing and the digital currency is also advancing its use cases.
So, Should I Invest In Cardano?
Well, this is more like a personal question that requires a personalized answer. If you think Cardano fits into your investment portfolio, then it might just be the best time to invest in the cryptocurrency. Cardano has been a promising digital currency from time past, and now with the launch of smart contracts on its bloackchain, chances are that it will become even more fortified with potentials.
Cardano is presently making amazing moves in Africa and its value has increased in the last few months since the announcement of the Cardano smart contracts. All these should be a good pointer for any investor willing to consider Cardano in their portfolio to make a move. However, get more knowledge about Cardano before getting on so you can know what you are actually getting into. But really, Cardano will make a good investment in this present crypto community.