Critics of the Cardano project doubt that the model of using smart contracts to create decentralized applications is suitable for this blockchain.
A few days ago, the ADA coin hit an all-time high of $ 3.1 in anticipation of the launch of the Alonzo hard fork and secured the third place by market capitalization among cryptocurrencies. The Alonzo update will activate the smart contracts feature, thanks to which developers will be able to create decentralized financial applications. This will allow Cardano to compete with Ethereum and other smart contract projects.
However, Cardano was criticized after bugs were reported on the Cardano testnet, which launched smart contracts. It encountered difficulties associated with the simultaneous use of the protocol by several users. Difficulties have arisen as a result of Cardano’s use of unspent outputs (UTXOs) to track users’ funds. Minswap, the first Cardano-based decentralized app, was
forced prematurely close your testnet.
Critics of Cardano argue that the decentralized applications that will be built on top of this blockchain will face similar challenges. Therefore, the Cardano network is unlikely to be suitable for large players such as the Uniswap decentralized exchange, which processes more than 10,000 transactions daily, according to some members of the cryptocurrency community.
Eric Wall, head of investment at Arcane Assets, is convinced that Cardano “doesn’t fit” into the current DeFi landscape. Developers will need to find many workarounds to create certain types of decentralized applications, Wall said.
“Six years of research, market capitalization of more than $ 90 billion … And the first decentralized application on Cardano cannot even perform parallel transaction processing”, –
wrote Ethereum supporter Anthony Sassano tweeted.
According to
allegations for IOHK, behind Cardano’s development, the “enhanced” UTXO (eUTXO) model provides greater security, predictable fees, and more efficient processing of concurrent transactions. In response to comments that Cardano is not up to the task because it only allows one transaction per block, IOHK said there are workarounds. For example, you can develop a service or application using multiple UTXOs.
Sundaeswap, another Cardano-based decentralized app, also disproved the assumption of a single transaction in a single block. Sundaeswap developers stated that Cardano allows hundreds of transactions per block. The developers of Maladex, another dApp built on the Cardano blockchain, defended Minswap, noting that it was not a finished product yet. Cardano founder Charles Hoskinson said critics only spread fear, uncertainty and doubt (FUD).
“Cardano falls short of competing smart contract platforms despite all the talk of research and scientific discovery. Cardano promised too much and defaulted. They haven’t earned a market cap of $ 90 billion yet. The platform still has a lot to prove to justify the price tag, ”Wall said.
Earlier, Hoskinson said that more than a hundred companies are already in the process of switching from Ethereum to Cardano, and in five years Cardano plans to attract up to 1 billion users.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
