There is much anticipation for Cardano’s Alonzo hard fork, an upgrade scheduled for September 12th. Orlando Merone, Country Manager of Bitpanda, has released an analysis, of which we report a summary.
That the wait for Alonzo is strong can be seen from the market capitalization data: Cardano has often exceeded 2.98 euros, a record for the cryptocurrency.
What is Alonzo and how does Cardano change
Alonzo will open to smart contracts on Cardano. As Orlando Merone writes, «smart contracts are “smart” contracts written in self-applicable and immutable computer code. This is a much awaited novelty because this functionality is destined to open a new and wide range of use cases for the Cardano blockchain: payments, peer-to-peer transactions, crowdfunding, auctions and much more ».
On Cardano it will thus be possible to use DApps, that is decentralized applications. With a lot of potential on the front of decentralized finance and new innovative services.
Cardano or Ethereum?
The competition between Cardano and Ethereum is known to all cryptocurrency enthusiasts. The Alonzo hard fork allows Cardano to compete with ETH on an almost equal footing, becoming an alternative for the management of smart contracts.
Cardano’s strengths on Ethereum concern sustainability, with 275 transactions per second against Ethereum’s 15, but also lower rates. Ethereum is, however, about to respond with new features and the transition to Proof of Stake with Ethereum 2.0, implementations expected by the end of 2021.