Exciting Developments: Cardano's Path to Smart Contracts Unveiled
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Chapter 1: Cardano's Upcoming Testnet
Recently, Charles Hoskinson, the visionary behind Cardano, shared insights regarding the timeline for launching a testnet dedicated to smart contracts. According to his announcements, this testnet is anticipated to be operational by late April or early May.
As noted in a previous discussion, the Cardano cryptocurrency (ADA) is currently valued at $1.20, boasting a market cap of nearly $40 billion, positioning it as the fifth-largest project in the market. The potential to ascend to the third spot is within reach, with only a $1–2 billion gap separating it from Binance Coin (BNB) and Tether (USDT).
Doubts often shadow successful projects, with critics arguing that Cardano's valuation is overly speculative. They assert that without the smart contracts feature, Cardano cannot fairly compete with Ethereum.
In a recent video, Hoskinson elaborates on the short- to medium-term strategies for Cardano, detailing the forthcoming developments in the months ahead.
Section 1.1: Transitioning from Shelley
In the video presentation, Hoskinson reviews the progress made by the team, emphasizing that Cardano is transitioning out of the Shelley era. The integration of multi-asset capabilities has already been achieved.
Subsection 1.1.1: What is Alonzo?
Looking ahead, the next phase is referred to as ‘Alonzo.’ Hoskinson describes it as follows:
“Alonzo enhances the Extended UTXO Model, incorporating existing elements from the codebase, and introduces the sophisticated Plutus platform to Cardano.”
For those unfamiliar, Plutus serves as the smart contract platform on the Cardano blockchain. In terms of a timeline, Hoskinson states:
“We aim to launch the Alonzo testnet in late April or early May. This will enable users to set up smart contracts on Cardano publicly for the first time.”
Section 1.2: The Market's Response
Despite the skepticism regarding the absence of smart contracts, it is notable that ADA's price has surged from $0.17 at the beginning of the year to its current level of $1.20.
The all-time high reached $1.48 on February 27, 2021, reflecting an impressive 750% increase throughout 2021. Hoskinson also acknowledged the concerns raised regarding the lack of smart contracts, yet he emphasized the network's robust functionality in the meantime.
Chapter 2: Insights from Charles Hoskinson
In the video titled "The New Era For Cardano ADA with Charles Hoskinson," he discusses the transformative changes on the horizon for Cardano.
The second video, "Charles Hoskinson on Cardano Future With Governance and Scaling," delves deeper into Cardano's governance and scaling strategies.
For more personal insights, Hoskinson invites followers to join his monthly newsletter. Engaging with him on various social media platforms is also encouraged to foster a shared crypto journey.