Editorial StaffCardano prepares to enter the decentralized application space as smart contract functionality arrives.
Cardano’s Alonzo update brings the network much closer to its full capabilities.
The Alonzo hard fork is a major upgrade on the Cardano network that sees the much-anticipated implementation of smart contract functionality. Smart contracts are pieces of computer code that automatically execute when certain predefined conditions are met. After the Alonzo update, anyone will be able to create and deploy their own smart contracts on the Cardano blockchain, paving the way for native decentralized applications (dapps).
The system update, which is expected to roll out fully sometime in the third quarter, signifies the end of the Shelley era of Cardano and the beginning of the Goguen phase. Although there is no set date for the end of the Alonzo hard fork, developers all across the network have been working hard on testnets and have stuck to a defined road map with specific milestones in the form of “eras.”
The eras of Cardano
Cardano’s development road map is divided into six main stages, or “eras,” each focused on expanding the functionality of the network.
- Byron – Sets up the foundation code of Cardano. Allows users to exchange the ADA (+1.86%) currency, named after revolutionary programmer Ada Lovelace, and mine ADA with their proof-of-stake consensus algorithm
- Shelley – Focuses on decentralizing the network by setting up incentives for users to host their own nodes. The main goal of this era is to make sure the nodes, or individual computers, are run by a diverse group of network participants rather than a small, centralized group of users
- Goguen – Introduces smart contract capabilities to the network allowing developers to create decentralized applications on top of Cardano
- Basho – Improves the underlying performance of the Cardano network to be able to process more transactions and scale up. This era also introduces side chains, which is a means of scaling a network using multiple blockchains
- Voltaire – Adds a voting and treasury system for self-sustaining governance. Users will be able to stake their funds to influence future development on the network
Cardano is now in the final stages of the Shelley era. This development phase added a host of new features to Cardano such as a proof-of-stake protocol known as Ouroboros, an incentives and delegation scheme that rewards participants and better hard wallet support.
By offering rewards to those who run full nodes – network participants who download the entirety of the Cardano blockchain – Cardano incentivizes network participation and encourages the growth of the Cardano network.
Since its launch on July 29, 2020, Shelley has introduced two major hard forks: Allegra and Mary. Allegra introduced a token locking mechanism that allows users to lock up Cardano tokens in preparation for on-chain voting (which is expected to roll out in Voltaire, the final development stage). Mary, on the other hand, introduced token support for Cardano’s Native Tokens (CNT). These native tokens are similar to Ethereum’s ERC token standards and enable users to create and deploy their own tokens on the Cardano blockchain, including non-fungible tokens (NFTs).
Cardano operates using its own “hard fork combinator” – a system that combines two different protocols (such as Byron and Shelley) onto a single ledger to ensure a smooth transition between phases. One problem that Cardano developers saw with hard forks was that after a hard fork was agreed upon, there would still be a considerable segment of the community that did not switch over to the new version. That may have been because they disagreed with changes or just because they didn’t bother upgrading. Either way, the combinator allows nodes to run multiple versions at once, meaning transitions are seamless and updates are frictionless. Essentially, rather than be opt-in, the updates will be opt-out.
Alonzo stages
The Alonzo hard fork is split into three main color-coded phases.
- Alonzo Blue
- Alonzo White
- Alonzo Purple
There are also two smaller phases post-Alonzo Purple dubbed “Alonzo Red” and “Alonzo Black.” Each phase essentially adds more users to the testnet and identifies bugs that may need to be fixed.
Alonzo Blue introduced smart contracts with around 50 technical participants, mostly stake pool operators (SPOs). Invalidation errors and other simple fixes were found and tweaked during this phase. These standard bugs are expected to appear and be fixed as Alonzo goes through testing.
Alonzo White adds more features and a wider range of participants to Alonzo Blue. The hundreds of new users will be run through a sort of “exercise boot camp” that will test the capabilities of the network. This experiment is being done by IOG; the main development company behind Cardano led by former Ethereum co-founder Charles Hoskinson. The company expects this phase to last around two to four weeks.
Alonzo Purple will become a fully public testnet and on-board thousands of participants to the network. This particular stage is split into two distinct phases, “light purple” and “dark purple.” The first will allow for simple smart contracts, while the latter will allow for more complex smart contracts.
Source: Coindesk
