In view of Cardano’s upcoming Alonzo hard fork, the crypto exchange Binance has announced that it will support the upgrade of the network. The Alonzo hard fork is expected to take place on Sunday, September 12th, 2021.
Binance plans to stop all deposits and withdrawals from ADA, Cardano’s network token, 30 minutes before the start of the upgrade – however, trading in the asset should not be affected.
Alonzo brings smart contracts to Cardano
Alonzo is described by Cardano founder Charles Hoskinson as the most significant upgrade to date and is intended to integrate the long-awaited smart contract functionality into the network. In the future, developers should be able to develop decentralized financial applications on the chain that will enable the lending and trading of assets – without having to resort to intermediaries such as banks.
Cardano already activated Smart Contracts for the test network last week, which catapulted the ADA price to a new all-time high of over 3 US dollars.
Simultaneity problem halts test
However, the introduction of smart contracts did not go smoothly. After the start in the testnet, the first decentralized Cardano application (dapp), Minswap, had to be closed prematurely.
The reason for this was a so-called “simultaneity problem”.
This means that only one user per block or transaction could interact with a smart contract. However, the Minswap team emphasized several times that they had been aware of this challenge since they started developing the Cardano chain.
“It’s not a fundamental flaw, just a design challenge that needs to be addressed.”
The simultaneity problem faced by the Minswap team led to criticism of Cardano, which the company’s chief investment officer, Eric Wall, managed to fend off.
“Cardano was not built for the current DeFi landscape.”
Sundaeswap, another decentralized exchange based on Cardano, also rejected the allegations of a simultaneity problem. The development team managed to get around the problem.
“In fact, it’s just the opposite. Cardano allows many hundreds of transactions per block. “
It remains to be seen how the smart contract functionality with the Alonzo hard fork will change after the Start on September 12, 2021 will incorporate the Cardano ecosystem. One thing is certain, a simultaneity problem would reduce the efficiency of the upgrade a lot.
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