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Can Cardano threaten Bitcoin and Ethereum with its new upgrade?

Cardano coin is currently on the up. The coin want to set itself apart from Bitcoin & Co. with its lower CO2 footprint, smart contracts with its upgrade. Can it rally to all new all time highs?

Cardano challenges Bitcoin with its own proof-of-stake

Things are currently going well for the crypto currency Cardano. While Bitcoin is still criticized for its high power consumption when mining, the currently third-largest crypto currency in terms of market capitalization can score points on this topic. According to the Cardano Foundation, which is behind the network, the Crypto Currency Coin stands for a platform for change. “With a leading team of engineers, Cardano aims to shift the power of uncontrollable structures to the edge of society – to the individual – and to be a driving force for positive change and progress,” says the organization’s website to read. While the computationally intensive proof-of-work protocol is used in Bitcoin mining, Cardano coins are mined using the more sustainable proof-of-stake process – similar to the new ether upgrade Ethereum 2.0.

New Upgrade Promises Smart Contracts

But that’s not all: As the Cardano developer IOHK revealed in a video announcement in mid-August, the next major update is about to be released. The hard fork, which is being developed under the project name “Alonzo”, is to be published in a test environment on September 1st, as product manager Nigel Hemsley announced in the video conference.

If the test network is stable and all possible errors have been eliminated in good time, the official introduction of the Alonzo upgrade is planned for September 12th. With the new hard fork, it should be possible to run smart contracts on the Cardano chain. This would allow Cardano to catch up with other cryptocurrencies such as ether. With the new feature, the network is also open to third-party applications. Using the specially developed Plutus programming language, which is supplied with the Alonzo upgrade, the creation of smart contracts should also be made possible for users who do not necessarily have a technical background, according to the finance portal The Motley Fool.

Cardano in the Top 3 Crypto Currencies. How long will it last?

With the news about the Alonzo upgrade, Cardano is continuing its course rally. After the coin had already gained significantly at the turn of the year and then jumped above the US $ 2 mark for the first time in May, there was a brief setback in July when it was temporarily trading just above the US $ 1 mark again. But since the prospect of an early implementation of smart contracts came into focus at the beginning of the month, the price has been moving steeply upwards.

On August 23, it hit a new record high of $ 2.97 and is currently trending slightly below it. With a market capitalization of around 88 billion US dollars most recently, the Internet coin has now overtaken its competitors Tether and Binance and has risen to the top 3 of the cryptocurrencies. The second-placed Ether, with a total value of around 378 billion US dollars, is still a long way off.

It remains to be seen whether the Cardano course can continue to benefit from the hopes of the Alonzo upgrade in the next few days and what the actual release of the hard fork will mean for the price trend. According to t3n, analysts expect a price target of between four and five US dollars by the end of December.

Do you think Cardano will offer a better alternative Bitcoin and Ethereum? Vote yes if you do or No if you don’t?

Author: Isa Misao