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Sunday, March 26, 2023

Cardano (ADA) Price Prediction: Alonzo hard fork sparks controversy

Inevitably, all the news announced on the blockchain sparks a flood of debates, discussions, questions and controversies. After the London hard fork of the Ethereum (ETH) blockchain , it is the turn of the Alonzo de Cardano (ADA) hard fork to trigger strong fears among cryptocurrency users on the grounds that it would offer a low level of security.

The smart contract problem

What is the main difference between Cardano’s EUTXO protocol model (ADA) and the one used by Ethereum (ETH)? The first offers a more optimal level of security than the second. In addition, it allows a certain “anticipation of costs”. However, despite its advantages, Phase Purple testnet of Cardano was the subject of criticism in the community.

Indeed, users testing Minswap , Cardano’s first DEX , received the following message: “UTxOs are being used on this block”. This message indicates that Cardano (ADA) can no longer process more transactions during a block, which is contrary to the original objectives of the project. (Aso Read: Bitcoin (BTC) Price Forecast: Week ends in the red)

Matching “ issues ” mean that different agents cannot interact with a smart contract at the same time. As a result, discussions are intensifying about whether or not Cardano (ADA) is reliable to meet industry requirements.

Blockchain smart contract issues have been ruthlessly dealt with by Crypto Twitter . Anthony Sassano, founder of The Daily Gwei , noted that “the first DApp on Cardano cannot even do concurrent transaction processing,” which reduces its ability to run a DEX on the network. For its part, DailyCoin notes that “the competition inherent in the eUTXO model” will make the development of smart contracts more difficult on this network than on others.

Risk of piracy

In a post on Twitter , Minswap , the Cardano DEX on which users encountered the EUTXO issue, announced that his team had to “shut down the testnet temporarily”. Then, in a post-mortem report, the team claimed to be aware of the challenges that the new protocol must overcome to meet developer demands. (Read More: Cardano Price Prediction, ADA Forecast: Nothing will stop Cardano’s uptrend)

However, according to Minswap , the problem encountered is not with a “fundamental flaw” but rather with a “challenge” of design architecture. As a result, it will not launch the DEX on the testnet . Rather, it will implement a new solution based on the feedback received.

In an article published on CyptoBriefing , the author explained that DEX developers can reduce competition risk if they develop DApps that accept aggregation state segmentations. In other words, one would have to create several pools that could ultimately reduce the risks of “Cardano smart contract hacking”. Indeed, the flaw noticed in the system could serve as a trail for hackers.

The hard fork Alonzo of Cardano (ADA) may be different from the hard fork of Ethereum (ETH), but the fact remains that, too, at the heart of much debate because of the problems noticed in its deployment. Many fear that this hard fork will divert the blockchain from its original objectives and lead to a profound change in how it works.

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