IOG Denies Rumors About Cardano Smart Contracts Platform
September 06 2021 - 2:00PM
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Over the past few days, some questions have been raised on Cardano
and its smart contract platform, Plutus. To be implemented with
Hard Fork Combinator event Alonzo, the platform is currently on its
final testing stage, and it’s expected to go live in the short
term. The concerns and rumors were mostly discussed on social media
platforms, such as Twitter and Reddit. The main issue revolved
around Cardano’s capacity to handle a high number of transactions
in a determined smart contract. This is due to the protocol’s
ledger approach, and their Unspent Transactions Output (UTxO)
blockchain model. The source of the rumors was apparently
originated from a product called Minswap, currently testing Plutus,
as user “HoneyGramOfficial” reported on the subreddit r/Cardano.
Minswap “rushed” to launch their product and users interacting with
it reported failures. Cardano detractors claimed that the
blockchain UTxO model without a fee gas market will cause the
platform to have issues upon Plutus’ launch. Developer Foobar
(Oxfoobar) said: Cardano is BTC with better UTXO validation and
worse decentralization. Both the UTXO model and Hydra liveliness
reqs are incompatible with most smart contracts, even Uniswap.
Centralized relayers required. Cardano’s developer IOG quickly
responded to what they classified as “social media speculation”,
and “outright FUD & misinformation”. The company went on to
clarify that the network does have a different “programming
paradigm” than Ethereum, the blockchain with most DeFi
applications. IOG added: The specific flavor #Cardano uses is the
eUTxO – or extended model which we believe offers greater security,
allows for fee predictability (no nasty surprises…) and offers more
powerful parallelization. Responding To “FUD”, The Cardano
Community Reacts In addition, IOG said that, unlike what the rumors
were claiming, dApps build on top of Cardano can process more than
1 transaction per block. This is part of the developers’ work to
design their dApp with “multiple UTxOs” and enforce “more
parallelism”. The company committed to continuing to inform the
community, users, and developers about the technical elements of
Cardano. The community has also provided educational material and
tools to understand the ledger approach. Despite the fact that the
Minswap launch could have led to the rumors, IOG congratulates the
project on its launch and claimed, “this is what a testnet is for”.
In addition, the company highlighted that the smart contract
ecosystem on Cardano is at its early stage. Related Reading | New
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Thus, there is room for growth and improvement, IOG hinted.
According to the company, there has been a great deal of
participation and excitement around Plutus. They expect an
“explosion of activity” in the coming months. Hundreds of
developers have completed the #Plutus Pioneers course. Scores of
projects have already started developing in Plutus & are at
various stages of expertise and readiness. #ProjectCatalyst saw 800
project applications last week seeking $4M for #BuildingOnCardano.
Despite the negative news, ADA’s price barely reacted. The
cryptocurrency dropped a few percentage points, and quickly recover
to its current levels moving sideways over the past day. At the
time of writing, ADA trades at $2,85 close to its all-time near $3.
The resilience of the price, even when facing a strong attack,
speaks to the investors’ confidence in the project. If Cardano, its
developer IOG, and community are successful, ADA could go for
another leg up into uncharted territory.
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