The update Alonzo can push Cardano to the decisive assault on the positions held up to now since Ethereum? The question is a must, in light of the expectations raised by thelast update concerning the "cryptocurrency of professors". Which, according to what was estimated by the working group which oversees the development of ADA, should allow the project to take off definitively in the field of decentralized finance (DeFi). In particular, the take-off would be made possible by an exponential increase in terms of speed of negotiations and the reduction of transaction costs. Two aspects that continue to haunt Ethereum.
Alonzo: what is it about?
The name given to the update is a homage to Alonzo Church, the American mathematician considered to be one of the fathers of computer science. This is a hard fork which, once completed, will lead to the introduction of new features to the Cardano network. In particular it will allow the development of new dApps and decentralized finance functionalities.
Its launch will take place in several phases, each of which is identified by a color. If the current one is indicated by the blue color, the next ones will be Alonzo White and Purple. To which we will add various sub-phases that, in the event that everything goes as hoped by the developers, will eventually lead to the deployment of the final result on the Cardano mainnet. Which, according to forecasts, it should be completed in September. With the result of providing Cardano with the necessary weapons to be able to face the competition with the other currently dominant financial ecosystems. That is Ethereum, Binance, Solana and Polkadot, but not only.
Charles Hoskinson's statements about Alonzo
On the sidelines of Alonzo's launch, the statements of Charles Hoskinson, or what is considered the father of Cardano. Who stated that the period of time which separates the community gathered around the project from the definitive launch of Alonzo is to be considered as the most challenging faced up to now by the company. An opinion which, moreover, seems justified by the stakes. The slowness with which Ethereum is updating its ecosystem, in fact, is creating unexpected gates for rival projects. Among which Cardano seems to be the one who is working with greater commitment in order to take advantage of the opportunity. And that he could have the keystone in his hand to do so.
Why is Cardano very dangerous for Ethereum?
The danger of Cardano for Ethereum must be sought above all in the presence inside of an ERC-20 converter. Which will allow Ethereum tokens to find space on the blockchain of Cardano, while allowing users great margins of freedom. Starting with the possibility of returning to the Ethereum network at any time.
The developments created by this sort of bridge were illustrated at the very beginning of July, by Romain pellerin, the CTO of IOHK (Input Output Hong Kong), the company that oversees the development of Cardano. He said that blockchain technology will reach mainstream acceptance only when end users can switch from one blockchain to another, giving life to an experience without constraints. That is the one proposed by Cardano.
In practice, as a result of this bridge, users can earn from staking on Cardano without having to immobilize your tokens for a certain period of time, as is the case with competing networks. An advantage that could therefore prove decisive for ADA.