Experts, tell you that Cardano — and its native virtual currency, ADA — is a cryptocurrency to keep an eye on since it recently became the world’s third-largest cryptocurrency. Cardano has been on a meteoric rise, with a market valuation of approximately $80 billion (around Rs. 5,87,974 crores). In less than a month, prices have more than doubled. Cardano is a blockchain-based on proof-of-stake mechanism that was created in 2015.
Miners are needed to stake the bitcoin they hold in order to validate a transaction.
And it appears like Cardano’s meteoric rise will continue, considering that it is on the verge of a massive upgrade in the shape of the ‘Alonzo hard fork.’ So, what are the benefits of the software upgrade?
Users will be able to construct and deploy “smart contracts” on the Cardano blockchain thanks to the Alonzo upgrade. Smart contracts are computer programs that do tasks when certain criteria are satisfied
Cardano will be pitted against Ethereum, its main opponent, as a result of this update.
Cardano’s growth is split into five stages: Byron, Shelley, Goguen, Basho, and Voltaire. The update is an essential element in the development of Cardano. Cardano is nearing the conclusion of the Shelley period. The launch of the aforementioned “smart contracts” will signal its transition into the Goguen age.
Alonzo Blue, Alonzo White, and Alonzo Purple are the three stages of the Alonzo upgrade or hard fork. There are numerous tests for ‘smart contracts’ at each level. Before the formal changeover to the new era, developers will discover and fix flaws in the blockchain.
“With the integration of smart contracts, the Goguen era represents a big step forward in capability for the Cardano network.” according to Cardano’s official website. While the Shelley period decentralizes the system’s core, Goguen provides the capacity to create decentralized apps (DApps).
The Goguen age will provide more than simply “smart contracts.” According to the website, “The addition of a multi-currency ledger will extend the usefulness of Cardano even further, enabling users to create new natively-supported tokens,”.
According to the Cardano Foundation, this will result in the production of fungible and non-fungible tokens (NFT), as well as the “creation of new cryptocurrencies on Cardano and tokenization of many types of digital and physical assets.”