Cardano’s Alonzo hard fork, Ethereum’s nemesis?

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Cardano grim reaper coming for ethereum

At 10:45 PM GMT+1 today, Cardano will be launching its much-anticipated Alonzo hard fork on its mainnet. This is a major milestone on the development roadmap of the cardano network as this upgrade will kickstart the implementation of smart contract functionality on the network.

The importance of smart contracts to an ecosystem’s traction cannot be overemphasized. This brings in more developers into the network, more projects, more investors, more use-cases and overall an increase in the value of its native token.

Before we dive deep into what the latest upgrade promises, let’s look at how this affects the blockchain space.

Clash of the titans.

Ethereum launched the smart contract functionality in July 2015. This birthed many blockchain projects in the ethereum network and created more use cases for blockchain generally. 6 years down the line, we have more projects implementing smart contracts, and more use cases such as DeFi,crowdfunding, NFTs and many more. The downside of building on the ethereum network is the high gas fees due to network congestion. Developers don’t want to build in the ethereum network as much as before, as it costs a lot to build DApps and make transactions on the network. Ethereum also doesn’t offer the fastest network speed for transactions.

Cardano covers these loopholes that have plagued the ethereum network in recent years. With a faster network speed that allows more transactions per second, a significantly lower transaction fee and the release of the smart contract functionality, Cardano poses to be a more appealing network for developers and new projects to build on.

What to expect

With the smart contract functionality implemented, new projects and blockchain use-cases will be launched on cardano in the coming weeks and months. Two major use-cases cardano enthusiasts are looking forward to are DeFi and NFTs.

DeFi

DeFi projects such as Cardaswap and ErgoDEX are already built and will operate on a large scale on the cardano network. Several other DeFi projects will be launched on the network in coming months.

NFTs

NFTs have become one of the most trendy and rather controversial use cases of blockchain, and it is here to stay. With smart contract functionality on Cardano, NFT projects and marketplaces will be built on the network.

NFT marketplaces such as NFT Dao and LoveAda are live, and many NFT collections are already sold out even before the launch of smart contracts on the network.

What does this mean for ADA?

ADA, the native token for the Cardano ecosystem is posed to increase in value in coming weeks and months. As earlier stated in this article, the smart contract functionality will attract more developers to build more projects on the network . This will increase the utility of the project and attract more investors to the ecosystem. All of this indicates a bullish trend for the coin which peaked at $3.07 in early September and currently trades at $2.6. ADA at $2.6 is a steal if you ask me. Grab a bag. Cheers.

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Cardano’s Alonzo hard fork, Ethereum’s nemesis? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.