On Sunday, Cardano’s big ‘alonzo’ upgrade is set to roll out and will usher in the ability of the network to run a wide range of crypto applications, from non-fungible tokens to smart contracts. The purpose of the upgrade is to bring what the founder of Cardano, Charles Hoskinson, refers to as ‘programmability’ to the blockchain. Sunday is the final and the most important of the Alonzo series of upgrades that will enable the network to go up against the likes of ethereum, which is currently the biggest blockchain for running applications, along with a native crypto token.
But, it is also because of the potential associated with some blockchains for revolutionizing trading, finance and even entertainment and art. For instance, non-fungible tokens (NFTs), which are like digital collectors’ items representing assets in real life, such as video, artwork, and even virtual real estate, have become quite popular. Many celebrities have endorsed these, along with luxury brands and sports stars. You often need a cryptocurrency for accessing these digital assets. The possibility of using the native currency of the blockchain for buying an NFT, make a payment or participating in an online game, has turned out to be a big driver in several of the tokens that are offered by the networks, including Cardano.
Since Cardano made the announcement of releasing their final ‘purple’ Alonzo update, the ADA currency of the network has gained around 33% in value. Therefore, it has become the third-largest digital currency in terms of market value, as its capitalization has now reached $82 billion. The biggest cryptocurrency is none other than Bitcoin, which boasts a value of around $884 billion, has increased in value by 4% during the same time period. Once the upgrades are finished, another application that will run on the Cardano blockchain are smart contracts.
This is a piece of code enabling two or more parties to conduct transactions with one another without requiring an intermediary like a broker, or commercial bank. They are considered cornerstones of the DeFi space and there will be a high demand for any network that can run them. This is a major step for a network that since being launched in 2017, has been regarded as a ‘ghost chain’. This is a crypto term used to refer to a blockchain that’s valued in billions but doesn’t have much to offer in actual utilization.