On September 12th Cardano’s “Alonzo” Hard Fork upgrade will be implemented and I found out what that means for ADA holders.

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The Alonzo hard fork is probably the biggest upgrade on the Cardano network thus far that will see the implementation of smart contract functionality. Smart contracts are bits of code that automatically execute when specific agreed upon conditions are met. After the Alonzo update, anyone will be able to create and run their own smart contracts on the Cardano blockchain. This is what is largely fueling the price movement we’ve seen these last few weeks.

What is a Hard Fork?

How nodes during a fork

From a previous post of mine, a hard fork is when nodes of the newest version of a blockchain no longer accept the older version(s) of the blockchain; which creates a permanent divergence from the previous version of the blockchain.

Adding a new rule to the code essentially creates a fork in the blockchain: one path follows the new, upgraded blockchain, and the other path continues along the old path. Generally, after a short time, those on the old chain will realize that their version of the blockchain is outdated or irrelevant and quickly upgrade to the latest version.

What apps are looking to launch on Cardano?

Projected Cardano Ecosystem

As you can see many decentralized applications (Dapps) are looking to get on the cardano ecosystem. If these are all launched successfully the blockchain should be a great competitor to all other smart contract platforms. They have also been building a bridge which will make it easy for Ethereum dapps to convert over to the cardano network.

Keep this in mind: This hardfork requires no action for anyone who is holding ADA. You can keep your ADA where it currently is.

Sources:

https://www.fxstreet.com/cryptocurrencies/news/cardano-alonzo-hard-fork-what-you-need-to-know-202108231138 https://www.fool.com/the-ascent/cryptocurrency/articles/cardano-to-launch-smart-contracts-in-september-heres-what-it-means-for-investors/ https://www.investopedia.com/terms/h/hard-fork.asp reddit. com/r/cardano/comments/naq75i/cardano_ecosystem_pipeline/

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