Cardano has seen a lot of development in the year 2021. The network entered decentralization with the beginning of the Shelley upgrade. Now it is the turn to introduce the world to the features of Goguen, which is the code name for Cardanos next era in development.
How will it change Cardano and strengthen the use of its blockchain? And what do we have to expect in the coming weeks for ADA?
The Alonzo hard fork
Cardano uses a lot of code names to handle all the different stages, upgrades and updates. And the Alonzo hard fork is another one that is to be remembered, because it will introduce smart contracts to Cardano. Many other platforms like Ethereum or Binance Smart Chain are already having the technology at hand.
The hard fork is expected to happen at the end of April 2021 and is therefore only a few weeks away. According to the founder of Cardano, Charles Hoskinson, Alonzo will turn the Cardano blockchain into a multi asset platform. While Ethereum and BSC are primary concerned with non-fungible tokens and decentralized finance, Cardano is aiming for more and plans to achieve different and higher goals.
Shelley introduced staking and decentralization to Cardano and Alonzo will bring smart contracts and dApps. And these are meant to create use cases primarily for the industry and big companies. Digital identities and decentralized insurances are only two of the many possibilities that Cardano would like to offer to the biggest players on the market.
ADA is waiting for its ecosystem
The reason why this news is so bullish is very simple. Ethereum and Binance Coin are the two biggest cryptocurrencies after Bitcoin, because they provide use cases to millions of people. And this is driving the demand for ETH and BNB.
ADA on the other hand has no use yet, because aside from transacting and staking there is not much that can be done with Cardano compared to other platforms. But this is going to change drastically with the introduction of smart contracts. Cardano will stay a work in progress and its roadmap is still not finished once Alonzo became part of the network.
It remains to be seen how many companies will adopt Cardano and how fast they are going to build products. Some might leave Ethereum, because it is too expensive and the Binance Smart Chain is to centralized. Other might start their own journey with blockchain technology using Cardano. The year 2021 will be most exciting and Alonzo is the start.