Following the network’s latest Alonzo white hard fork, Cardano can now be considered a DeFi coin.
Smart contract integration is now functional on Cardano which yes, technology makes it a DeFi coin.
The Alonzo white hard fork was a huge leap forward for the Cardano (ADA) network, bringing it in line with the functionality of Ethereum.
To compete with its big brother Ethereum in today’s market, Cardano was always going to need the ability to host defi platforms.
This section of our Cardano guide takes a look at the Alonzo white hard fork and what this means for the future of DeFi on Cardano.
The Alonzo white hard fork
The Cardano development team at Input Output HK announced that they had successfully forked Cardano on Twitter:
So that’s 6 years after the project’s inception, Alonzo finally brings the network in line with Ethereum’s smart contract capabilities.
As mentioned above, the upgrade has technically allowed Cardano to support smart contracts and therefore to be a DeFi coin.
With Cardano now able to automatically execute contracts based on a series of set conditions, DeFi applications moving to the platform surely won’t be far away.
As a high speed, low fee alternative to Ethereum, Cardano is poised to steal projects who are are craving the right decentralised alternative.
The Alonzo purple hard fork
Input Output HK have since also announced that the next Alonzo phase has been now been launched:
This means Cardano will now feature full smart contract compatibility.
following the initial onboarding phase, IOHK will hard fork the network and open the Alonzo Purple testnet to any developer who wishes to join.
Cardano vs Ethereum DeFi
Even though Cardano’s newfound smart contract capabilities mean that technically it’s able to host DeFi platforms, whether anyone will actually build on Cardano is another story.
We certainly haven’t seen a DeFi rush from Ethereum toward Cardano at this time.
Yes, Ethereum sucks…
It’s slow, expensive and a rich man’s playground.
However, when it comes to Ethereum’s DeFi adoption, the numbers simply don’t lie.
It’s the biggest and still the best decentralised network to build dApps on.
The keyword here being decentralised.
Those of us here on LeoFinance have an affinity for Binance Smart Chain because of Cub, but there’s no denying the fact that BSC is extremely centralised.
When it comes to decentralisation, Ethereum wins hands down, shown by Uniswap removing tokens from their main front-end.
When it comes to being a DeFi coin, Cardano may be in the game.
But they’re still miles behind the competition.
Best of probabilities to you.
Direct from the desk of Dane Williams.
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