Developers of the Cardano ecosystem have unveiled a plan to roll out a new smart contract platform. An alpha version of the Alonzo testnet, called Alonzo Blue, has already been launched. The developers announced this on their official website.
However, the full launch of Alonzo will take place in several stages. Each stage is color coded: Alonzo Blue, Alonzo White and Alonzo Purple. Basically, Alonzo is a hard fork of the Cardano network that supports new functionality. Smart contracts themselves are supported through the integration of the Plutus platform.
The developers believe that Alonzo will ultimately lead to the emergence of new decentralized applications (dApps), including Decentralized Finance (DeFi) protocols. However, it will take several more months for the project to be fully implemented. The details of the development of the new project are still unknown.
Ethereum is not a hindrance to Cardano
The developers also hope that they can take into account the problems that the Ethereum blockchain network faced in due time. In particular, the developers hope to avoid curious situations with inflated commissions.
Moreover, as stated by Cardano co-founder Charles Hoskinson, Ethereum’s move to Proof-of-Stake (PoS) is unlikely to pose a threat to Cardano. According to him, ecosystems have different user bases, and the Cardano ecosystem itself has a more robust version of the PoS algorithm.
Recall that one of the disadvantages of Ethereum is its scalability. The issue is expected to be resolved with the ETH 2.0 update.
However, the news of Alonzo’s launch did not greatly inspire the community. At the time of this writing, the ADA token is dropping by almost 15% to $ 1.49.
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