The term “Smart Contract” Is A Misnomer When Mentioned To Cardano, Price Surpassed BNB, what’s next?
Cardano has recently made great strides from its technology and network upgrades. Recently, Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, clarified that “smart contract” is not the right word for this blockchain. It looks like this...
Cardano has recently made great strides from its technology and network upgrades. Recently, Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, clarified that “smart contract” is not the right word for this blockchain. It looks like this project doesn’t just stop there.
Matthias gets it absolutely right. Programmable validators instead of smart contracts https://t.co/8VVESJ8MYU
— Charles Hoskinson (@IOHK_Charles) September 19, 2021
Cardano Creator proposes a new term for smart contracts
The story started when IOG developer Matthias Benkort tweeted that he did not like to stop the word “smart contracts” and now dislikes it even more when it comes to the context of Cardano.
“Compared to most existing smart-contract platforms, ADA’s network takes a much different road. Recently, we’ve seen many discussions going on about “concurrency issues” and “EUTXO vs. accounts.” While equally expressive, Cardano programmability is different and atypical,” Benkort stated. “Cardano introduces the concept of programmable validators. Validators are fully deterministic: their result entirely depends on the transaction that carries them (= predictable fees).”
Unlike Ethereum, Solana, Algorand,… there’s no such thing as deploying a smart contract on Cardano. Instead, validators are implicitly referred to by hashes before their use, and they are disclosed upon activation. This can be a little bit unsettling at first. A direct consequence of this means that validators aren’t producing anything. They validate.
In Cardano, smart contracts refer to the combination of the on-chain validators and the off-chain code driving them.
“Yet, I often see people mixing up validators and smart contracts: when one says smart contracts, they mean validators,” he added.
Source: KtorZ/Writer typed bugs for Cardano’s network at InputOutputHK
After Benkort’s presentation, Hoskinson called the new functionality “programmable validators.”
Cardano launched the much-awaited Alonzo hard fork on September 12th following controversy over its concurrency issue. One hundred smart contracts were deployed on the network in just 24 hours. Although it is late to the decentralized finance party, with Ethereum reigning supreme in the field so far, Hoskinson has long dismissed the first-mover advantage in DeFi.
ADA/USD 4-hour chart | Source: TradingView
At the time of writing, ADA is changing hands at $2.38, still down 8% over the past seven days due to the market’s bearish momentum. ADA has surpassed BNB and holds the third position on CoinMarketCap rankings, with a market capitalization of $76 billion, $7 billion higher than BNB’s $69 billion.
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