The Alonzo upgrade will bring smart contracts to the Cardano (ADA) blockchain by the summer of this year. This will enable users to write smart contracts and deploy them on Cardano. The addition of smart contracts marks a major milestone for Cardano since it will make the platform a viable competitor to Ethereum, a blockchain network notable for its smart contracts.
Bringing Smart Contracts on Cardano Platform with Alonzo Update
The Alonzo upgrade will happen around August or September 2021 marked by a four-week code freeze. The development team plans to have the code ready for the said freeze period by June 2021.
In early March, Cardano’s previous upgrade, Mary moved the blockchain much closer to Ethereum by introducing the ability for users to create custom tokens. This turned Cardano into a multi-asset network that could support different kinds of cryptocurrencies.
In addition to the existing functionalities enabled by the Allegra and Mary hard forks, Alonzo will enable support for smart contracts in about four months from now. The much-anticipated upgrade will further provide the tools for creating applications, precisely smart contracts written in Plutus.
Cardano Could Displace Ethereum
Through the upgrade, Cardano will enable developers and startups the opportunities to make decentralized applications based on smart contracts.
Defi’s 2020 summers saw a massive surge of decentralized finance and dApps all based on smart contracts. However, unlike Ethereum, Cardano doesn’t rely on smart contracts for token transactions. This indicates that transfer fees, which continue to rise on Ethereum, could be much lower on Cardano. Moreover, the Alonzo update could propel the price above $2, vying for its adaptability and scalability.
The month of May and June will be a period for quality assurance and user testing, followed by a 4-week feature freeze.