After September 12th, smart contracts became a reality on the Cardano network. Following the launch of the Alonzo Hard Fork Combinator, developers could now begin creating smart contracts on the ecosystem. This would help developers create decentralized applications (DApps) to provide decentralized finance (DeFi) services to blockchain users.
With the number of smart contracts created on the network, there is no doubt that we will see an influx of new decentralized apps on the network. According to the project, they are assisting developers in bringing their projects to life on the platform. By ensuring that the Cardano ecosystem is as secure and developer-friendly as possible. The number of smart contracts already live on the ecosystem demonstrates the developers’ trust in the network.
In just four days, Cardano has seen over 40,000 smart contracts.
Over 100 smart contracts were created in the first 24 hours following the completion of the launch. This figure was impressive in and of itself. However, the subsequent days have revealed an even faster timeline for the creation of these smart contracts. Thursday, September 16th, marks the fourth day following the Alonzo HFC, and the total number of smart contracts on the network has now reached nearly 41K.
While the majority of these smart contracts are not yet in effect, developers are creating them in order to secure their tokens before the release of their decentralized applications. It demonstrates the number of projects already in the works by developers to bring to the Cardano ecosystem. More protocols are expected to launch their smart contracts on the network as the rise of decentralized finance continues, and as more people abandon other leading smart contracts platforms in favor of a cheaper and faster alternative like Cardano.
These smart contracts are currently in a timelock contract, effectively locking them up for a set period of time until the developers are ready to use them. This will give the developers the time they need to develop their protocols while also securing their smart contracts for future use.
How Does This Affect the Price?
The impact of so many smart contracts being created on the Cardano blockchain may not be immediately apparent. However, there is no doubt that the rate at which smart contracts are created will have a long-term positive impact on the price of its native asset, ADA.
One of the major driving forces behind Ethereum’s and, more recently, Solana’s success has been the rise of decentralized finance. Similarly, DeFi protocols on the Cardano blockchain will effectively increase the token’s value. This is because, once these decentralized applications are operational, users will need to use ADA to conduct blockchain transactions.
While users are not required to hold ADA coins, they will need to be purchased in order to trade and pay transaction fees. In the long run, this will increase demand for the coin, resulting in a higher value for the digital asset.