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How Cardano Can Potentially Redefine DeFi

Cardano plans to solve its real-world problems using blockchain technology.
It monitors the education processes of 5 million young people together with the Ethiopian Government.
As a result of the initiative, plans will be created that can be useful if students are looking for a job or considering studying abroad. The team’s priority is thorough research. Because of this, it took some time for the Alonzo Hard Fork to be deployed on the mainnet. Alonzo Hard Fork is Cardano’s third major update to the Shelly Era.
The currency has five widely known major stages of development. These; Byron, Shelley, Goguen, Basho and Voltaire. All of these will increase the overall functionality of the network. Alonzo, the last major development of the platform during the Shelley era, brings it into the Goguen era. The Alonzo update has three phases: Blue, White and Purple. Alonzo Red and Alonzo Black will be added for adding users and emerging issues. Alonzo Blue will add smart contracts to the network, similar to those found on the Ethereum network. Cardano’s smart contract capabilities have taken a big hit, allowing it to compete with other programmable blockchains and greatly expand the solution offerings available to its partners.

So, How Will Cardano be Any Different?

Cardano has a unique development environment. As with Binance Smart Chain and Polygon, most Ethereum competitors use the Ethereum Virtual Machine, meaning they can run Ethereum code without any modifications. Solidity is a programming language similar to Javascript used for Ethereum and EVM based networks. Cardano will not support EVMs for now. Developers have to create smart contracts in Plutus, a new and easy smart contract language, and Haskell. The use of Plutus instead of Solidity is very important for the development of Cardano’s ecosystem. On the one hand, this shows that it will be difficult to migrate Ethereum dApps like Uniswap, Aave, Compound or any Ethereum dApp to Cardano. Some users may be reluctant to switch to Cardano early due to lack of liquidity.

Binance Smart Chain’s EVM compatibility means that all its major dApps are clones of existing Ethereum dApps, while Cardano is expected to have unique applications for developers and users alike. It may take time to see the next generation DeFi developed in Cardano. This may result in the development of new additional applications. In addition to the sophistication of Plutus, hacking incidents can be reduced thanks to security verification techniques. Developers and users will benefit from the new Cardano DeFi ecosystem, which includes a brand new smart contract environment packed with their own unique tokens, projects and features. The added benefit now is a wealth of knowledge and expertise that Ethereum didn’t have when it was first released.

Wrapping Up

Cardano may not be worth as much as Ethereum. But it is very good that the competition in the smart contract industry encourages all projects to develop their products and services for the benefit of their users.

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About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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