Recent congestion in the Ethereum blockchain which led to the huge rise in the transaction fee has forced the hands of decentralized applications, protocols, and platforms to look for alternatives to serve their users. Many blockchains that support smart contracts are preparing grounds for the migration of these D’apps.
Cardano itself must have long foreseen what is presently happening as it has scheduled support for smart contracts before the congestion started. Charles Hoskinson, the founder, and CEO of IOHK revealed that Ethereum, though a breakthrough in smart contracts, has a weakness- scalability. He made this revelation in a video explaining what Cardano stands for and why it is a third-generation blockchain.
Ethereum was successful experimentation that added a smart contract layer to the Bitcoin model of peer-to-peer transactions. Charles who was also a co-founder of Ethereum identified that Ethreum cannot service billions of people. This adds to the fact that its mining consumes a lot of powers. To mitigate this, Cardano was founded and has been thriving ever since.
As the tradition of Cardano developers has been, the research teams have worked and published materials to showcase the various features and updates.
Part of these updates is Goguen which will bring smart contract features to the Cardano blockchain. The update is set to roll out towards the end of this year.
According to a recent blog post from Cardano Foundation explaining tokenization, the arrival of Goguen will enable Cardano to power potentially, thousands of smart contracts, and decentralized applications. Users will be able to transfer, hold, and trade multiple Non Fungible Tokens (NFTs) quickly, and without having to spend huge amounts in transaction fees.
The community members are anticipating this update. There is surely going to be a paradigm shift after the update. The use of Decentralized finance complex protocols can be enjoyed by Cardano supporters because of its scalability, interoperability, and sustainability.
While explaining what Cardano has done to mitigate scalability issues of the blockchain, Charles Hoskinson revealed that they have found a way around bandwidth challenges- Recursive Internetwork Architecture (RINA).
The core details (data) of a contract may not be useful to third parties, only the fact that tokens have been transferred and the receiver is a legitimate owner. Scalability in terms of transaction speed, bandwidth, and data scale will help Cardano differentiate itself from other blockchains as smart contracts onboard.
Cardano has prepared grounds to seamlessly service a huge number of users, Goguen is part of this plan.