Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

ADA’s Alonzo – Not Another London Hard Fork

CryptocurrencySep 12, 2021 12:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
ADA’s Alonzo – Not Another London Hard Fork

  • The first public innovative contract testing experienced backlash after facing “design challenges”
  • Minswap, the first DEX on Cardano, was forced to cut its testnet short after users discovered concurrency issues
  • Blockchain communities and developers criticized Cardano’s ability to meet existing network demands

Blockchain novelties inevitably stir up any innovative community. A mainnet release creates a “what-if” parallel, suggesting potential shifts in the power of the blockchain industry. Cardano’s Alonzo hard fork triggered a price surge as developers await the much anticipated smart contract functionality to be operational on the network. However, not every update testing period alters the industry’s trust in the project.

A Concurrent Issue

To asset market dominance, a blockchain project needs to convey trust. Even though a strong community backs Cardano, they cannot make up for the lengthy development delays. The EUTXO protocol model developed by Cardano “offers greater security” and “allows for fee predictability,” a factor previously omitted on Ethereum.

Cardano’s Purple testnet phase that focuses on applying and deploying smart contracts on the network saw unprecedented criticism. Users testing Minswap, Cardano’s first DEX, were greeted with the message,” UTxOs are being used on this block.” The error illustrates that Cardano cannot process more transactions during a block, which is contrary to the project’s network proposition.

Concurrency “issues” means different agents cannot interact with a smart contract at the same time. This brings forth discussions regarding the possibility of Cardano to meet the industry’s harshest demand. Web3 developer, who goes by the Twitter (NYSE:TWTR) username self-repaying scoopy, told Dailycoin that “when you don’t have a product, there is no basis for valuing it” as a community hype drove its price.

Crypto Twitter was ruthless towards Cardano’s smart contract issues. Anthony Sassano, the founder of The Daily Gwei, noted that “the first dapp on Cardano can’t even do concurrent transaction processing,” restricting its ability to run a DEX on the network. However, self-repaying scoopy told DailyCoin that “concurrency inherent in the eUTXO model” will make smart contract development difficult compared to other networks.

On The Flipside

  • Cardano’s smart contract issue only impacts concurrency and therefore DeFi, but could still work for other blockchain products.
  • A cult-like community has formed around Charles Hoskinson.
  • A cryptocurrency with smart contract flaws has an $82 billion market capitalization.

Minswap Goes: The Post-Mortem

Input-Output (IOHK) released a statement that claimed Cardano’s UTXO uses a “different programming paradigm for dApps than on account-based blockchains such as ETH,” thus, Cardano gives more freedom to developers to “enforce parallelism.” DailyCoin reached out to Cardano and the Cardano Foundation for a request to comment but did not receive a response at press time.

Minswap, the Cardano DEX where users encountered the EUTXO issue, announced via Twitter post that “unfortunately” they were forced to “shut down” their testnet “temporarily.” In their post-mortem report, Minswap enunciated on the EUTXO issue, claiming they’ve been aware of the challenges the new protocol brings for developers.

Still, they emphasized the issue is not a “fundamental flaw” but rather a design architecture “challenge.” As a result, Minswap will not launch the DEX on the testnet and will use the incoming feedback before implementing any scaling solutions.

In a CryptoBriefing article, the author emphasizes, DEX developers can mitigate concurrency risks by developing dApps that “tolerate” segmentations of state of aggregation. Simply put, creating multiple pools which could ultimately decrease Cardano’s secure value proposition. Moreover, Twitter user BitcoinLab, emphasized that the exposed flaw in the Cardano blockchain could inevitably kickstart a “Cardano smart contract hack.”

Language Barrier

Cardano’s EUTXO issue brings additional questions and prepositions about the network’s sustainable growth. Self-repaying scoopy told Dailycoin that:

"Most serious developers in the space choose Ethereum/EVM chains, and an increasing amount is gravitating towards Rust contract development with Solana." Factors such as “grassroots development” in the case of Ethereum or a “formidable warchest and strong VC backing” in the case of Solana could decrease Cardano’s market impact because the network has “neither of these,” and its value thrived solely on the hype phase.

Moreover, Cardano and Ethereum are not the only projects that seek to gain a market monopoly, and there is a list of growing super-smart contract chains. At the same time, Cardano’s latent and slow development will be ineffective once ETH 2.0 is rolled out. According to self-repaying scoopy, “Cardano has a lot it needs to overcome in order even to be relevant” and will not stand a chance at “uprising Ethereum’s dominance.”

Why You Should Care?

Cardano’s price increased to a new all-time high as speculation and community hype helped it diffuse across all mediums. However, considering a blockchain that shows fatal flaws several days before releasing its primed network update can reach the top 3 coins by market capitalization; thus, we must reconsider how value is appropriated throughout the industry.


Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

ADA’s Alonzo – Not Another London Hard Fork

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Doug Jones
Doug Jones Sep 12, 2021 5:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
pathetic hack job
Amit Chandola
Amit Chandola Sep 12, 2021 1:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ADA all the way!!
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email