In the past few days, some questions have been raised about Cardano and its Plutus smart contract platform. In order to be implemented with the Hard Fork Combinator Event Alonzo, the platform is currently in the final test phase and is expected to go live shortly.
The concerns and rumors were mostly discussed on social media platforms like Twitter and Reddit. The main issue revolved around Cardano’s ability to handle a large number of transactions on a given smart contract.
This is due to the protocol’s ledger approach and its blockchain model for issuing unspent transactions (UTxO). The source of the rumors apparently comes from a product called Minswap, which is currently testing Plutus, as the user “HoneyGramOfficial” reported in the subreddit r / Cardano.
Minswap “rushed” to get its product to market and users who interacted with it reported bugs. Cardano’s critics claimed that without a fee gas market, the blockchain UTxO model will cause the platform to struggle when Plutus launches. Developer Foobar (Oxfoobar) said:
Cardano is BTC with better UTXO validation and worse decentralization. Both the UTXO model and the Hydra liveliness requirements are incompatible with most smart contracts, even Uniswap. Centralized relays required.
Cardano’s developer IOG was quick to respond to what they classified as “social media speculation” and “direct FUD & misinformation”. The company further clarified that the network has a different “programming paradigm” than Ethereum, the blockchain with most of the DeFi applications. IOG added:
The specific variant that #Cardano uses is the eUTxO – or extended model, which we believe offers more security, allows predictability of fees (no nasty surprises …) and offers more powerful parallelization.
The Cardano community reacts in response to “FUD”
Additionally, IOG said that contrary to rumors, dApps built on top of Cardano can process more than 1 transaction per block. This is part of the work of the developers to design their dApp with “several UTxOs” and to enforce “more parallelism”.
The company is committed to continuing to educate the community, users, and developers about the technical elements of Cardano. The community has also provided educational materials and tools to understand the ledger approach.
Despite the fact that the launch of Minswap may have led to the rumors, IOG congratulates the project on its launch, claiming: “This is what a test network is for”. Additionally, the company highlighted that the smart contract ecosystem on Cardano is in its early stages.
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So there is room for growth and improvement, IOG suggested. According to the company, there was a lot of participation and excitement surrounding Plutus. They expect an “activity explosion” in the coming months.
Hundreds of developers have completed the #Plutus Pioneers course. Numerous projects have already started development in Plutus and are in different phases of expertise and readiness. #ProjectCatalyst received 800 project proposals last week with a $ 4 million request for #BuildingOnCardano.
Despite the negative news, ADA’s price barely responded. The cryptocurrency lost a few percentage points and quickly rebounded to its current level, which moved sideways over the past day.
At the time of writing, ADA is trading at $ 2.85, near its all-time value of $ 3. The resilience of the price, even in the event of strong attacks, speaks for the confidence investors have in the project. If Cardano, its developer IOG and the community are successful, ADA could take another step into uncharted territory.
ADA is moving sideways on the daily chart after a small decline was reported on rumors. Source: ADAUSDT Tradingview