Investing.com – Founder Charles Hoskinson has had to put off his community over and over again in the past few months. Too often, the forecasts were subjected to a reality check that did not hold up. Obviously, it is not as easy to make the ADA smart contract capable as a layperson would imagine.
Nevertheless, many investors stayed on the ball. The ADA price even reached a new all-time high after it was announced in August that the blockchain will finally be ready for the development of smart contracts on September 12 with the Alonzo upgrade.
Cardano smart contracts are no competition for Ether
The expectations were very high in advance, after all, it was often said that a competitor would be in the field of smart contracts – Cardano processes transactions faster and is more cost-effective.
But as so often in life, reality quickly catches up with you. Alonzo went live yesterday, but the hoped-for quantum leap is almost as far away as before the upgrade.
The UTXO protocol model offers greater security and a better forecast for the development of transaction fees compared to Ether, but there are also limitations. Restrictions that are so serious that you will probably never hold a candle to Ethereum, especially not when ETH 2.0 becomes a reality.
At the heart of the matter is that Cardano is not able to carry out multiple transactions within a block. An essential matter for smart contracts that are processed by several actors at the same time.
First ADA DEX goes offline
The first decentralized exchange (DEX) called Miniswap was developed on the testnet. But the crypto exchange cannot really be used. Only the message “UTxOs are used in this block” appears.
This error message symbolizes that the development of smart contracts is considerably more difficult compared to other blockchains. And anyone who speculated that ETH smart contracts will move to Cardano after a quick conversion will have to be prepared for a long dry spell.
The developers of the Miniswap DEX tweeted that the project will be taken offline for the time being. It was emphasized that this is not a fundamental flaw, but a challenge based on design architecture, but whether it should be better power?
The Miniswap developers have withdrawn to find a solution to the problem. This could be that transactions take place over a segmentation and several pools. One thing is certain, however, if it only works like this, it will inevitably lead to a loss of security – is that what you want in the DeFi area?
The Cardano team around Charles Hoskinson cannot sit back and relax after Alonzo, because the upgrade was not the holy grail that so many were hoping for.
The IOHK has to provide answers and that quickly. Because why should smart contract developers bother with the challenges of Cardano when there are simpler solutions like Solana?
From Marco Oehrl
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.