The Smart Contract release was announced on September 12 as part of the so-called Alonzo upgrade by Input Output Hong Kong (IOHK). The quantity of smart contracts that have already been created on the ecosystem demonstrates the developers’ faith in the network.
Smart Contracts with a Twist?
In less than 24 hours, the platform has over 100 smart contracts running on the network, as well as its first decentralised application. Following the Alonzo hard fork upgrade on Sunday, hundreds of smart contracts have been added to the Cardano blockchain explorer. The smart contracts, however, appear to be in a time lock and cannot be used by developers until they are released.
While most of these smart contracts aren’t in effect yet, developers are designing them in order to secure their tokens before their decentralised applications are released. It demonstrates the large number of projects that developers are already working on for the Cardano ecosystem.
Several notable projects are either in the process of implementing smart contracts or are planning to do so shortly. For example, GREED, a rewards token that returns ADA to holders, Liqwid, an open-source and non-custodial interest rate curve liquidity protocol, SingularityNET, a platform that allows anybody to create, share, and monetize AI services at scale, and Cardax, the first Cardano DEX.
“We will see over the next few months to years, some form of a crackdown,” [That] means that the next generation of DeFi is up for grabs.”
“The winners of the future in the DeFi space are going to have liquidity and interoperability, the ability to move multi-chain,” Hoskinson said. “And finally, cost predictability is such an important thing… It’s so bizarre how we just tolerate massive swings in the price of doing business.”
Overall, Cardano transactions have increased over the course of the year. According to data provider Coin Metrics, the blockchain surpassed the one transaction per second barrier for the first time on September 3. Cardano had already supported token transfers prior to smart contracts, as well as non-fungible tokens (NFTs), which could be driving the increased transaction count.
On the 25th and 26th of September, IOHK will highlight anticipated enhancements and improvements to smart contract capabilities at the Cardano Summit. While development activity on the Cardano blockchain is increasing, the price has remained stable at around $2.50.