BY LYNNAE WILLIAMSPUBLISHED 2 DAYS AGO
The third-largest cryptocurrency is receiving a massive network upgrade. Are you ready?
n August 2021, Cardano’s ADA cryptocurrency became the world’s third-largest virtual currency by market capitalization, behind Bitcoin and Ethereum. ADA has surged more than 1300% in 2021 and 130% in August alone. It broke the $3 mark for the first time in early September, as excitement grew ahead of the smart contract launch.
Although ADA has since fallen below the $3 mark, with the introduction of smart contract functionality, it is poised to continue its meteoric rise. Here, we’ll look at what ADA smart contracts are and why they could be a game-changer for this cryptocurrency.
Alonzo is the code name for the major upgrade (considereda hard fork) that will bring smart contract functionality to the Cardano network. Like all cryptocurrencies, ADA uses blockchain technology to record and track the exchange of information.
Smart contracts are small pieces of code stored on a blockchain that execute automatically when certain conditions are met. Their magic lies in making the blockchain programmable, giving developers the ability to create decentralized applications on top of Cardano.
Smart contracts will bring three major upgrades to the Cardano ecosystem:
Plutus is the programming language used for Cardano’s smart contract development. It’s already been deployed on Cardano’s testnet, allowing developers to build and test apps before going public.