{"id":310312,"date":"2021-07-28T19:24:00","date_gmt":"2021-07-28T16:24:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/waiting-for-alonzo-cardano-smart-contracts-creep-toward-full-launch\/"},"modified":"2021-07-28T19:24:00","modified_gmt":"2021-07-28T16:24:00","slug":"waiting-for-alonzo-cardano-smart-contracts-creep-toward-full-launch","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/waiting-for-alonzo-cardano-smart-contracts-creep-toward-full-launch\/","title":{"rendered":"# Waiting for Alonzo: Cardano smart contracts creep toward full launch"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2598e69a090\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2598e69a090\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/waiting-for-alonzo-cardano-smart-contracts-creep-toward-full-launch\/#Optimistic_prediction_fails\" >Optimistic prediction fails<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/waiting-for-alonzo-cardano-smart-contracts-creep-toward-full-launch\/#Nearly_72_of_all_ADA_is_staked\" >Nearly 72% of all ADA is staked<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Waiting for Alonzo: Cardano smart contracts creep toward full launch <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvMjc3OTc2YWMtYWI1OS00MDIzLTg2MGMtZjNhNjg4ZjBkYTk0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>The Cardano network is in the watershed phase of its network development and upgrades. The ongoing phase of the protocol\u2019s roadmap is the Goguen phase, bringing smart contracts to the network. This is the third phase of the roadmap after Byron and Shelley. The Goguen phase was split into three stages, Allegra, Mary and Alonzo.<\/p>\n<p>The Allegra update went <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forum.cardano.org\/t\/goguen-momentum-continues-with-new-protocol-update-on-16th-december\/43164\">live<\/a> on December 16 last year, and the Mary update was deployed on the mainnet on March 1 earlier this year. This leaves the Alonzo upgrade, which was further split into three different phases, named Blue, White and Purple. While the final deployment of the Alonzo upgrade on the mainnet was planned to be in August 2021, there seems to be a delay in the phase\u2019s release, as Alonzo is still in the testnet part of its progress. <\/p>\n<p>Since Alonzo brings the much-awaited smart contract functionality to the network, the community has been eager to see them in action, as it entails the enabling of decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications (DApps) on the blockchain.<\/p>\n<p>On July 15, Input Output HK (IOHK) announced on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> that their Alonzo testnet has hard forked from the Alonzo Blue to the Alonzo White node, allowing for the expansion of their smart contract functionality on the platform. Although Alonzo Blue offered smart contracts, its availability was only limited to a set of insiders. Alonzo White now allows operators of stake pools, and network developers and 500 validators will be able to test this functionality going forward. The Alonzo White testnet is scheduled to run for a period of two to four weeks before transitioning to the final stage of the Alonzo update, Alonzo Purple.<\/p>\n<p>Cardano\u2019s network is in the third phase of its development, known as the Goguen Update, named after American scientist Joseph Amadee Goguen. This update integrates smart contracts into the network, allowing for the creation of DApps. In phases one and two, the network has gone through the Byron and Shelley upgrades which focused on the establishment of the network and its decentralization, respectively.<\/p>\n<p>After completing the Goguen phase, which was initially supposed to be finalized in August 2021, the blockchain will go through phases four and five of the project\u2019s roadmap, named Basho and Voltaire. Basho will <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/roadmap.cardano.org\/en\/basho\/\">improve<\/a> the scalability and interoperability of the network, while Voltaire <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/roadmap.cardano.org\/en\/voltaire\/\">promises<\/a> to make the network \u201ctruly decentralized\u201d with the transfer of the entire governance mechanism to network participants, and will no longer be under IOHK\u2019s management.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Optimistic_prediction_fails\"><\/span>Optimistic prediction fails<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite a well-structured roadmap and phase updates that the network promised, some questions are being raised on its current utility. Cardano founder, Charles Hoskinson, had <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1287481374224420864?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1287481374224420864%7Ctwgr%5E%7Ctwcon%5Es1_c10&amp;ref_url=https%3A%2F%2Fnews.bitcoin.com%2Fcharles-hoskinson-faces-twitter-backlash-as-his-cardano-predictions-fall-short-of-reality%2F\">predicted<\/a> on July 27, 2020, that in a year\u2019s time there would be hundreds of assets running on Cardano, along with thousands of DApps and \u201ctons of interesting projects.\u201d<\/p>\n<p>In the following year, the crowd has called out this optimistic prediction, pointing out the network is nowhere close to the levels of utility that Hoskinson predicted a year ago. Meanwhile, many members of the Cardano community defended the network, saying that the statement made by Hoskinson was just a prediction and not a promise. Hoskinson himself responded to the critics, saying that \u201cThere are thousands of assets on Cardano.\u201d <\/p>\n<p>He also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=yd1eg4QopV8\">released<\/a> a YouTube video on July 8, claiming that the project is progressing in line with the framework of the defined roadmap and that more than $10 million of nonfungible tokens (NFTs) have been sold throughout the network. He added that once Alonzo White is deployed on the mainnet, developers will have the ability to launch DApps and NFTs on the network. Ben Armstrong, youtuber and creator of BitBoyCrypto.com, told Cointelegraph:<\/p>\n<blockquote><p>\u201cThe Cardano team hasn&#8217;t backed away from their smart contract launch period starting in September. Considering how well the Alonzo White hard fork has gone, I don&#8217;t expect any further delays. That said, Cardano&#8217;s methodical approach means they&#8217;ll push a deadline before the possibility of taking a step back on a bad launch.\u201d<\/p><\/blockquote>\n<p>Marie Tatibouet, chief marketing officer of Gate.io, a cryptocurrency exchange, told Cointelegraph that the roadmap is still intact. About the questions raised on the utility aspect of the Cardano network, Tatibouet opined that since the Alonzo upgrades\u2019 main proposition in the Goguen phase consists of the implementation of smart contracts on the network, it can\u2019t be judged on its lack of utility until smart contracts have been completely integrated.<\/p>\n<p>Armstrong spoke further on the dilemma of smart contracts holding up the network\u2019s growth, saying, \u201cIt&#8217;s a chicken and egg situation. You need smart contracts to really get DApp development going, but you also need killer DApps to draw more development to the space. There are a lot of DApps that are on Ethereum and waiting in the wings for Cardano.\u201d<\/p>\n<p>He even mentioned that since blockchain developers are in very high demand at the moment, poaching has become a huge problem. \u201cWhen ICP hit Coinbase this year, Charles was open about how DFinity poached several of his top engineers. I imagine that has caused some delays in Cardano-specific development across the industry.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nearly_72_of_all_ADA_is_staked\"><\/span>Nearly 72% of all ADA is staked<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At its current state, the low utility of the Cardano network might be impacting one important aspect: The staking of its native token, ADA. According to data, nearly 72% of all ADA tokens are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/pooltool.io\">staked<\/a> on the network, amounting to around $30 billion out of a roughly $42 billion market capitalization. This includes 2,745 active pools and a total of nearly 716,000 staked addresses.<\/p>\n<p>Tatibouet spoke about the current utility of ADA tokens themselves, saying: \u201cAs of now, the two main functions of the ADA tokens are staking and governance. In that regard, it is a very good sign that so many holders have faith in the network and have staked their tokens in the ecosystem.\u201d<\/p>\n<p>She also added that it\u2019s important to remember that staking ADA is way more flexible than the usual staking mechanisms of other protocols. It allows stakers to access their tokens at any time that they choose since the tokens aren\u2019t completely locked away from the staker, thus adding to the convenience of staking on the network. Armstrong opined further on the integration of smart contracts that will impact the high proportion of staking in the network, explaining why the tokens are being staked:<\/p>\n<blockquote><p>\u201cThey are hodling onto their stack of ADA, not just to use it for gains down the road but also to have a say in the eventual governance coming in Voltaire. Even with the current state of smart contracts, there are already NFTs you can buy and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>s to play. But once ADA asserts itself in smart contracts, you&#8217;re going to see that staking figure drop significantly.\u201d<\/p><\/blockquote>\n<p>Regarding the potential launch of DApps on Cardano after the implementation of smart contracts, Cardano also attempts to propose real-life utility through its network. Earlier in April, IOHK partnered with the Ethiopian government in a bid to revamp the country\u2019s education system by leveraging Cardano\u2019s blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>If the peer review system is broken, what the hell is the point of Cardano&#8217;s reliance on it?<\/em><\/strong><\/p>\n<p>In July, Grayscale added ADA to its Digital Large Cap (GDLC), making it the third-largest component of the fund\u2019s basket after Bitcoin (BTC) and Ethereum (ETH). Grayscale is seen as a benchmark of institutional interest in the cryptocurrency markets. Duc Luu, executive chairman at Spores Network, an NFT and decentralized finance marketplace based on Cardano, told Cointelegraph:<\/p>\n<blockquote><p>\u201cCardano promises the possibility of greener blockchain footprint, lower gas fees and higher throughput which we believe makes it a prominent venue for NFTs, as well as DeFi mainstream adoption, which are the two areas that institutional investors are very much interested in.\u201d<\/p><\/blockquote>\n<p>While discussing the timing of real-time utility coming into the network, Luu further mentioned that he believes it will happen soon, adding: \u201cCool functions like ERC-20 converter would allow projects to deploy quickly from ETH to ADA. There are many projects like us eagerly waiting in the background for the Cardano smart contract launch.\u201d He also anticipates that in six months from the launch of smart contracts on the network, the Cardano ecosystem will see a drastic change.<\/p>\n<p>However, it is important for the Alonzo network upgrade to be on schedule on the mainnet, as it\u2019s highly anticipated in the community. Other upcoming blockchains like Binance Smart Chain (BSC) are growing at a rapid pace, which could lead to some of the protocols to build on it instead.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/waiting-for-alonzo-cardano-smart-contracts-creep-toward-full-launch\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Waiting for Alonzo: Cardano smart contracts creep toward full launch &#8221; The Cardano network is in the watershed phase of its network development and upgrades. The ongoing phase of the protocol\u2019s roadmap is the Goguen phase, bringing smart contracts to the network. This is the third phase of the roadmap after Byron and Shelley&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":310313,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvMjc3OTc2YWMtYWI1OS00MDIzLTg2MGMtZjNhNjg4ZjBkYTk0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75378,75434,4965],"class_list":["post-310312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cardano","tag-smart-contracts","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/310312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=310312"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/310312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/310313"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=310312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=310312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=310312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}