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As Cardano approaches Hard Fork, the future of DeFi piques interest

11.08.2021

Cardano is gaining ground as an interesting digital asset, and this week it has launched a public testnet for the significant smart contract integration, which is a sign that the hard fork is imminent.

Today, some analysts have made their opinions known that Cardano could go to $5 after the Alonzo Hard Fork, which is now being considered by many enthusiasts and professionals to be ‘imminent’.

Back in the very beginning of August 2021, during a livestream, Cardano CEO Charles Hodgkinson stated that the launch date for Alonzo hard fork would be soon made known, and now this week, interest in when that may happen and what it will bring to the development of the decentralized finance world is gathering ground.

Two major events that have led up to this are the announcement by Cardano this week of successful projects from Fund5 of Project Catalyst, set to initiate Fund6 to support new decentralized applications, and that Input Output Hong Kong has now launched a public testnet for smart contract integration.

These having taken place are being considered by many to be clear signs that the Alonzo Hard Fork is in the immediate pipeline.

According to some commentators today, however, there is a degree of low confidence surrounding the upcoming smart contracts launch on Cardano. One particular source stated that odds are 59-41 against, according to recent market positions on the top prediction market Polymarket.

On Monday, August 4, Charles Hodgkinson tweeted via his Input Output Twitter account “ALONZO UPDATE: We’re delighted to announce that we have now successfully spun up #AlonzoPurple and have today begun the new user onboarding process👍 💪”

He then tweeted “Pretty cool to see these maps grow. It’s going to be a madhouse after Smart Contracts launch. Tons of DApp development, reddit and forums filled with projects, lots of catalyst demand.”

The value of Cardano, which operates under the acronym ADA, has risen a very encouraging 21.8% in the last fourteen days, and a potential figure of $5 is being bandied around.

Quite possibly, given the significance of this upgrade as ADA races towards the massive Hard Fork Combinator (HFC) event, the smart contract integration driven by Alonzo Purple could well be a major move forward in the series of nearly complete Alonzo updates to fifth-largest cryptocurrency.

Given that Charles Hodgkinson is a co-founder of Ethereum, the cryptocurrency which is widely understood to have the most sophisticated and in-demand smart contract functionality as part of the intrinsic components of its blockchain, this will be an interesting move indeed, and one that will, along with Ethereum’s forthcoming ETH 2.0 upgrade, take its place in forming the next developments in decentralized digital finance.

A world in which everything from companies being able to pay suppliers via decentralized blockchain smart contracts to real estate firms being able to lease office space to businesses and apartments to residential tenants being able to conduct entire legal and contractual transactions via decentralized, digital methods is fast approaching.