Investing.com – The wait is over! After endless years of research and peer reviews of specialist articles on the structure, potential, ideas and goals of the network, Cardano now also has the widely acclaimed Smart Contracts functionality, which opens the door to DeFi and dApps and the ecosystem as well should make it more attractive. The Cardano development team around IOHK dampens the “unreasonably high expectations” and calls for patience.
In a first reaction to the hard fork is the down by more than 5 percent (as of 06:50 a.m.CET) and is currently trading at $ 2.41. The price drop in the last seven trading days thus adds up to over 16 percent. however, the increase is still 83 percent.
Cardano network goes through hard fork
The Cardano network has an important hard fork run through and the Alonzo upgrade was successfully integrated into the mainnet. The platform will thus support smart contracts in the future and enable various teams or projects to develop and use their protocols directly on Cardano.
“This is just the beginning. And yet this is a moment to celebrate. As a community, we can look back on an incredible journey together. The enormous efforts that so many have made to get here must be recognized. At the same time, this is.” also a time to reflect on the challenges that we have overcome together, “IOHK wrote in a blog post on Sunday at the start of the smart contract function.
One of the most important points to consider with smart contracts on Cardano is the Plutus developer platform. It is the basic framework that makes this functionality possible in the first place. The parameters of the extended UTXO model can be defined with Plutus Core. According to the development team, this results in unique advantages over other billing models.
In addition, the Plutus Application Framework (PAF) enables access to applications and services that run on the network. It should also guarantee full browser interoperability.
“Using the same HFC technology used in previous upgrades, this marks the beginning of a new period of rapid growth. With the ability to write and run Plutus scripts on the chain, we have the backbone for a new one decentralized application platform that enables numerous DApps and decentralized financial applications (DeFi) – from simple swap apps to decentralized exchanges (DEXs) to more complex calculation programs such as oracles and crypto-supported algorithmic stablecoins. “
IOHK warns against too high expectations
However, IOHK also warned against too high expectations. There will be stumbling blocks on the way and the first user experience won’t be perfect, the developers said. With the first DApps there will probably still be some problems, they added.
“Some DApps could prove to be insecure. Cardano’s secure Layer 1 platform ensures robustness and a high level of security – and Plutus is designed in such a way that the potential for exploits is reduced to a minimum. However, poor coding practices always pose a risk to DApp users. It is also inevitable that malicious actors will try to gain advantage through hacks, exploits and the like. “
That is why it is all the more important as a community to be vigilant the more the ecosystem matures, according to input-output Hong Kong. “We even believe that certification must be taken more seriously as the entire industry matures.”
At the Cardano Summit, which will take place on September 25th and 26th in Amsterdam, the aim is to demonstrate how to support the development of new standard solutions together with a number of strategic partners.
“There are high expectations for this upgrade. Some of them are unreasonably high. Cardano observers may expect a sophisticated ecosystem of consumer-friendly DApps that will be available immediately after the upgrade. Here it is important to manage expectations. It should be remembered that a Another well-known blockchain project that started in July 2015 had to wait over two years for its first DApp (which had anything to do with cats?) before it really caught on with users. “
In this context, IOHK alludes to the first DApp on the Ethereum blockchain. It was an online game called CryptoKitties, which is based on blockchain technology. Launched in November 2017, the “digital kitties” became so popular that news outlets around the world covered them, including the BBC and the New York Times.
At the same time, problems are troubling Cardano
The start of the smart contract age on the Cardano blockchain was not entirely without problems. So it became known in the run-up to the Alonzo upgrade.
The problem of simultaneity often manifests itself in such a way that several users cannot interact with a program or protocol at the same time.
In response to the potential problem, Cardano founder Charles Hoskinson stated in one Videothat the criticism of simultaneity is an insincere characterization of the project:
“The problem with our industry is that it basically says: If you don’t support my cause or I see no way to make my cause happen, what you have constructed is absolutely useless – forever – and it is just a toy. And then they resort to vanity metrics without even understanding what they’re saying. “
Input Output also published a brand new blog post a few days ago explaining Cardano’s EUTXO approach to executing smart contracts and how it offers higher security, no fees for failed transactions and full cost predictability.
In any case, yesterday’s hard fork marks a new era for the Cardano project. It will be interesting to see how this will affect the ecosystem in the future.
Cardano rate (ADA / USD rate) – technical analysis
That’s in a quick move Cardano course the day before yesterday rose to the key technical resistance we mentioned ($ 2.82). A breakout, which would have resulted in significantly higher prices, did not materialize, however. The native crypto currency of the Cardano blockchain is still in, but is much stronger than its counterparts (,, etc.).
All in all, the momentum has decreased noticeably in the context of the overarching uptrend. Looking at the indicators, the price remains vulnerable to a more pronounced phase of weakness.
The daily chart shows the next relevant supports at $ 2.32 to $ 2.28. A sustained fall below the last-mentioned zone, especially at the end of the day, would provide initial confirmation that the price correction will continue. Closest holding areas below are at $ 2.20 to $ 2.13 and $ 2.00.
The overall chart image would cloud below the former breakout level at 1.90 / 1.89 dollars.
The next relevant hurdle is currently at $ 2.66. A rise above this would suggest a re-test of key support at $ 2.82. Potential targets for the upside would then be $ 2.98 / $ 3.00 and $ 3.09.
Note: This article does not constitute investment advice or a solicitation to buy or sell any assets. Nor does the article purport to predict the development of the Cardano price. This is merely a subsequent comment on the ADA development, the Cardano investors about the latest crypto news and the technical starting position of the ADA / USD should inform.