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Cardano sees the light of the day, soon to transition to proof-of-stake

source-logo  thecoinrepublic.com 25 August 2021 10:36, UTC

Cardano prices have been witnessing a bullish trend and have doubled in the last one m. In the last 24 hours, the prices of the currency have jumped to 11%. This increase in the prices of the token is due to the coin’s transition to the proof-of-stake. It will take Cardano to the next stage. 

Cardano might not have been a popular currency unlike Bitcoin and Ethereum, but the token is slowly gaining momentum and is popular among investors. It recently gained the status of the world’s third most valuable cryptocurrency. The currency is now looking ahead for an update soon called the Alonzo Hard Fork. 

The blockchain platform is based on a proof-of-stake system. The miners have to put up the cryptocurrency they already own in order to validate the transaction. If they possess more tokens, it is likely for them to win the auction. 

Ethereum, which has gained the status of second-largest cryptocurrency of the world, is on a transition phase. The transition is from proof-of-work to proof-of-stake. And hence, it makes the direct competitor of Cardano, if believed by many experts of the crypto community. 

However, Cardano is not drooping either. The new update is likely to start from next month and will give a head on competition to Ethereum in its own kingdom, the space of decentralized finance (DeFi) and smart contracts. With this update, Cardano will be able to mint NFTs (Non-Fungible Tokens), automate lending, and bring in other use cases. 

Cardano-the third most valuable currency

Cardano has gained the interest of the investors over the last two days. After becoming the third most preferred cryptocurrency recently, the price of the currency went up by around 11% in the 24 hours leading up to August 23. There is an upward trend witnessed, which is about 2% since then. The current price of Cardano is $2.89 and the market capitalization stands at over $90 billion. 

Reason for the price hike of Cardano

The hike in the coin is observed due to the upcoming updates to the network. The price of the currency has more than doubled in the last one month. It is the third major upgrade of Cardano’s Shelly era. It is dubbed in Alonzo hard fork. There are five main stages of development for the token which are often known as eras. They are Byron, Shelley, Goguen, Basho and Voltaire.

All these eras will boost the overall network’s functionalities. Alonzo is the last major update for the Shelley era and moves the platform towards the Goguen Era. The crypto token will soon be listed on the Japanese Crypto Exchanges. They have the most stringent listing requirements in the world. 

With the bullish sentiments of the people in the cryptocurrency space currently, Cardano is enjoying the bullish momentum ahead of Ada’s listing on Japanese crypto exchanges, which is all set to happen on August 25. Ada has also generated excitement ahead of the pending update that will come in September and paved the way for smart contracts on Cardano blockchain.

Alonzo hard fork for Cardano

Alonzo Hard Fork is broken into three phases, Blue, White and Purple. They will be followed by Alonzo red and Alonzo Black. This will add more users to the neworks and fix any bugs. Smart contracts will be introduced via Alonzo Blue to the network. It is similar to those on the Ethereum network. Smart contracts are nothing but algorithmically driven contracts. Under it the terms of agreement are directly converted into code. 

As a result these agreements can be defined over a blockchain network and their execution and transactions can be tracked by the platform. Hence, non-fungible tokens can also be used by Cardano, which has gained popularity during the Pandemic. OpenSea is the largest NFT platform. It touched $1.5billion in trading volumes over the last one month. 

thecoinrepublic.com