Ever since the updation of the Cardano (ADA) network in September 2021, the blockchain platform has received the capability of creating smart contracts. The upgrade known as Cardano Alonzo has brought Cardano one step closer to truly becoming the “Ethereum Killer.”
Cardano blockchain, right from its launch in 2017, has been touted as the “Ethereum Killer” on the back of the premise that it improves the Ethereum infrastructure – with improvements like lesser fees, higher scalability, and better transaction speed and throughput. Now, by launching its own smart contract capability, Cardano has come in direct competition with Ethereum.
Before we get down to what the Cardano smart contracts consist of and how to build one, let us compare it with the platform enterprises have traditionally used to create and deploy smart contracts – Ethereum.
Lessons that Cardano blockchain has learned from Ethereum
The foundation of Cardano use cases is that it aims to be better than Ethereum. Now, in order to be that, it was important for the former to adopt some of the strong points that the latter comes with.
The network is divided into two layers – CSL (Cardano Settlement Layer) used for ADA transfers and CCL (Cardano Computation Layer) used for creating ADA smart contracts. This separate activities-wise division makes running operations on both layers more efficient. On the contrary, Ethereum handled both smart contract and ETH transactions on the same layer, leading to higher fees and congestion.
Cardano blockchain uses a proof-of-stake consensus mechanism known as Ouroboros that decides how the new transactions will be agreed upon and added to the blockchain. Here, the users don’t mine tokens; they follow a block-validation process by staking the native token – something that makes blockchain more energy efficient, cost-effective, and scalable.
Compared to other blockchain platforms, Cardano uses a scientific peer-reviewed process before releasing any new update, product, or service. This gives the developers confidence that when they create smart contracts on Cardano, they will be backed by documentation and industry-wide validation from other computer scientists and developers.
Now that we have looked at how Cardano use cases draw inspiration from Ethereum and act as its upgraded version, let us get down to the details of Cardano smart contracts, such as – what are Cardano ADA smart contracts, how to create Cardano smart contracts, and the Cardano programming language.
What are Cardano smart contracts?
Cardano smart contracts, or ADA smart contracts as it’s commonly called, function similarly to the Ethereum blockchain. They act as virtual agreements that happen between two or more parties. In the approach, the outputs are executed when the prerequisite conditions are met – the outputs and conditions which sit on the Cardano ADA smart contracts.
The benefits of Cardano blockchain, which also reason out how to create smart contracts, range from:
- The absence of middlemen to maintain contracts
- When you create smart contracts, they lay on a decentralized network, meaning they are free from tampering
- Compared to real-world contracts, the execution of smart contracts is a lot faster
- With the data stored on a decentralized network, you can be rest assured that they are stored permanently, along with their backups
Now to build these highly efficient smart contracts, there are three Cardano programming languages that come into play –
Plutus – It is a purpose-driven smart contract development platform. It is powered by modern language research that provides a full-stack programming environment on the basis of Haskell, a leading functional language. Plutus comprises elements that run on the blockchain and some elements which run on the user’s machine.
Glow – It is a new domain-specific language for creating decentralized applications on the blockchain. With the language, the developers can code secure dApps ensuring that the smart contracts operate safely in the adversarial environment.
How to create Cardano smart contracts?
There are eight steps that developers follow when they create smart contracts on Cardano. Let us look at them in detail.
The pay arrangement transfers a certain token value from the payee’s account to another account in the contract. In case there are insufficient funds, warnings get produced automatically, and a partial payment is made, while an edit in the contract gets made.
This stage dictates how the Cardano smart contracts will get canceled. Here, the account owners are reimbursed through a single transaction after the values, actions, and observations are defined.
Value, observation, and action
Values are the numbers that vary over time, such as the balance of some token, slot number, etc. Observations are Boolean values that are obtained through a comparison of values and merged using the Boolean operators. Lastly, actions are the events that occur throughout execution – they can be money deposits, indications of some external worth, etc.
Oracles are created for ADA smart contracts. They are modeled as the decisions that a participant takes through their special Oracle role known as “Kraken.”
When the conditional stands true, the If obs cont1 cont2 gets performed and continues as cont1 cont2 on the Boolean value in the observation obs.
It is a contract that gets triggered by the activities that could or could not occur at any point in time, and it is the cases in the contract that describe what happens when certain actions occur.
The Let id Val cont function enables the smart contracts on Cardano to name a value within an identifier. Here, the expression value gets evaluated and then saved with the name id, while the contract gets extended as the cont.
The approach enables developers to use abbreviations and capture volatile data which might change over time in the Cardano smart contract development process.
The stage guarantees that the property holds at every point in the smart contract as the static analysis would fail if the execution results belong to a false assert.
So here are the eight stages of Cardano smart contract development, which have brought the answer to how many smart contracts on Cardano to over 3000!
With this, we have come to a stage where we know that Cardano is coming at par with other smart contracts platforms like Ethereum. But before you choose this as your next platform to answer how to create smart contracts, let us look into what makes it the right choice and the many use cases.
Why choose Cardano as your smart contract development platform?
There are a number of benefits that come attached with Cardano ADA smart contracts development. Benefits like:
- 70% of ADA being staked that offers a blockchain development company an excellent-grade network security.
- Marlowe’s programming language enables contracts to be written in finance instead of any general-purpose language. Since it is special-purpose, it is extremely easy to write, read, and understand the Marlowe contracts.
- Vasil hard fork, which is expected to be launched in July 2022, will expand the protocol and better the transactional processing’s throughput, which together would improve the functionality of the smart contracts.
- Lastly, factors like fast transaction speed and low fees make creating smart contracts on Cardano a smart choice.
Where to use the Cardano smart contracts?
Cardano ADA smart contracts find their use cases across a range of industries – Finance, gaming, real estate, and legal, amongst others. Let us look at them on a high level.
Smart contracts make it easy for mortgages to get automated while making the real estate process easy for the buyers and owners. To enable this, the Cardano smart contracts must be coded according to the mortgage agreements so that the processes can be executed automatically.
Cross border payments
Cardano smart contract helps with international goods transfer and payment initiations through the use of a Letter of Credit. It doesn’t just better the liquidity of the financial assets but also improves the financial efficiency across multiple stakeholders
Cardano-based legal contracts can be automatically executed through blockchain, making the process quicker to execute. Moreover, the smart contacts come with a 100% security guarantee at the back of low execution risk and less intermediaries.
In the gaming landscape, the players are able to join the eSports team without having to go through lengthy physical paperwork processes. Moreover, the Cardano smart contracts would consist of information like the time played for a team, number of tournaments won, scores gained, etc., with the payouts automatically generated when some conditions are met.
So here were the many use cases that come attached with the adoption of Cardano for creating smart contracts. What is great about the platform is that it is directly answering all the shortcomings of Ethereum and even learns from the blockchain network. Although today we are standing at 300 contracts being made on Cardano, the number is only poised to increase over time. For a blockchain entrepreneur, this means that the time to enter the landscape through Cardano is now. We can help.
Get in touch with our team of blockchain developers today to initiate your smart contracts journey.
PrivaCrip to Power a Blockchain Network That Could Follow Cardano & XRP
When the first decentralised blockchain was popularised in 2008 by Satoshi Nakamoto, the door was open for people across the globe to transact more securely and seamlessly. Many blockchain networks have been built and powered by native crypto tokens, including PrivaCrip (PRCR).
Native tokens exist for several reasons. Aside from acting as digital currencies, they perform various functions. Helping blockchains improve data traceability, security, transparency, and trustworthiness shared throughout the network. They also assist in reducing costs through their ever-evolving efficient methods.
Cardano (ADA) and Ripple (XRP) are among the best blockchain-based cryptos that this article will discuss. We will also look at how PrivaCrip (PRCR) will power a blockchain network set to launch into the crypto space.
Top Tier Crypto Makes its Mark – Cardano (ADA)
Cardano (ADA) has been around in the crypto space since 2017. The Proof-of-Stake (PoS), Ouroborous Cardano (ADA), was established using a research-based methodology.
Research is the backbone of Cardano (ADA) and is integral to its success in the cryptocurrency market. Cardano (ADA) uses an evidence-driven mechanism and peer-reviewed research to run its ecosystem to drive its evolution.
Among many things, Cardano (ADA) helps establish DeFi products and provides a suite of financial solutions. Crypto enthusiasts can stake Cardano (ADA) for a chance to earn rewards for their holdings.
With 2022 providing challenges in cryptocurrencies across the globe, Cardano (ADA) is one of the few cryptos to see a surge in on-chain trading volume this year. CoinMarketCap lists Cardano (ADA) as the 7th largest crypto by market capitalization at the time of writing.
Making Waves – Ripple (XRP)
Launched in 2012, Ripple (XRP) is a leading provider of crypto solutions for businesses. Ripple (XRP) provides developers with a solid open-source foundation for executing demanding projects. It is fast, energy-efficient, cost-effective, and reliable.
The solutions provided by Ripple (XRP) enable developers to solve inefficiencies, including asset tokenization and remittance. Therefore, individuals and businesses may apply Ripple (XRP) for DeFi, payments, tokenization, and more.
Crypto enthusiasts with a long-term focus may find Ripple (XRP) a valuable investing tool. Token holders can use Ripple (XRP) for staking its mainnet platform for a chance to grow their earnings and maximise profit.
The New Face Of Privacy – PrivaCrip (PRCR)
The soon-to-launch PrivaCrip (PRCR) is a cryptocurrency built for Web3 data privacy. It will allow users to develop and use permissionless and privacy-preserving applications. This unique feature of PrivaCrip (PRCR) secures apps, protects users, and fosters the creation of many new Web3 uses.
PrivaCrip (PRCR) will drive a blockchain that creates a more empowering and inclusive internet. It will enable developers to build secure dApps using private contracts based on original privacy research (OPR) to revolutionise Web3.
PrivaCrip (PRCR) will begin pre-sale soon and has an initial token price of 0.10 USD. According to the whitepaper, there will be a total supply of 190 million tokens, of which 40% of the total supply will go to the pre-sale.
Crypto enthusiasts who purchase PrivaCrip (PRCR) during the pre-sale will receive the most significant long-term rewards and bonuses. Those who buy with Bitcoin (BTC) will receive a 10% bonus. Also, those using Ethereum (ETH) to purchase will receive 15% of the total PrivaCrip (PRCR) they purchase as a bonus.
10% of PrivaCrip’s (PRCR) total supply is up for distribution as staking rewards, meaning that token holders who stake will receive rewards for their contribution to the crypto’s advancement.
Blockchain networks are continuously evolving, and so are the crypto tokens that power them. Cardano (ADA) and Ripple (XRP) have contributed tremendously to the success of their blockchain networks, gathering mass appeal.
PrivaCrip (PRCR), for its part, will drive a security-enabled blockchain and scalability in private DeFi, empower data tokenization, and bring together a fast-growing community. Acting on its promise, it has the potential to become the next big mover in cryptocurrency.
For more on PrivaCrip (PRCR), check below:
Cardano (ADA) Withdrawal Fees Waved by Bitrue Exchange
Singapore-based cryptocurrency exchange made Cardano one of its base trading pairs earlier this year
Singapore-based cryptocurrency exchange Bitrue announced that it had temporarily waived withdrawal fees for the Cardano (ADA) cryptocurrency.
The trading platform says that the move is meant to celebrate the support it received from the community behind the cryptocurrency.
Users will be able to withdraw ADA without paying any fees until mid-September.
Bitrue has stressed that it wants users to have “as much choice as possible” when it comes to custody options. Those who want to hold their ADA tokens will not be able to do so without paying an additional commission.
At the same time, Bitrue has touted its “Power Piggy” yield-farm investment program for those who want to earn passive income with ADA.
As reported by U.Today, Bitrue introduced the token as its base currency back in February.
In June 2021, it also became the first cryptocurrency trading platform to add support for Cardano-based native tokens.
Last month, Bitrue also announced a staking initiative with the ADA cryptocurrency. It decided to contribute a million tokens to some of the top Cardano staking pools in an effort to boost the level of decentralization.
Earlier this year, SundaeSwap (SUNDAE), the native token of the SundaeSwap exchange, also became available on Bitrue.
WingRiders Losses 59% Of Its Total Value Locked, Plunges Cardano TVL Below $100M
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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