Cardano (ADA) Strengthens Its Hand on the DeFi Side

Cardano (ADA) launches its second hard fork, Mary, in February. Cardano developers have published an article about how the Cardano network with the new hard fork could be interesting and useful for DeFi. The article focused on basic issues such as low transaction fees and security.

Cardano will be available for decentralized application (dApp) use after the upcoming hard fork. The Cardano community, which played a major role in the growth of Project Catalyst with its interest in the DeFi sector, expects how this development will result.

“Our community will continue to play a key role in Cardano’s development and to be the biggest force behind the network,” said Elliot Hill, from the developer team. said.

Transaction fees will drop

Gas charges, which are used to calculate transaction fees on the Ethereum network and are necessary for scalability, can sometimes be very costly even for the smallest transactions. While this is more costly for DeFi applications, it also poses an obstacle to the inclusion of new users in the ecosystem.

Elliot Hill stated that the local tokens and products in the Cardano network are not subject to transaction fees and that Cardano has a cost advantage. The biggest reason for this was that Cardano allowed the use of local tokens and products without requiring a smart contract.

Security goes to the top

While Ethereum-based smart contracts have many advantages, they are susceptible to a few errors in terms of security. The smallest mistake in drafting the contract could cost millions of dollars.

There is no need to write separate code for tokens created with Cardano technology. According to Elliot Hill, this results in less human error and makes Cardano rival Ethereum for security. He believes that Cardano will thus be more attractive to institutional investors and leaves the following message:

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“If corporate companies start to enter the DeFi sector, they will prefer tokens that have eliminated their security problems over smart contracts.”

How has the price of Cardano (ADA) changed?

Cardano continues to innovate and develop, with a market value of $ 10 billion, ranking 6th according to CoinGecko. Having seen its all-time high on January 4, 2018 with $ 1.18, ADA started to rise in January 2021. The crypto money is priced at $ 0.33.

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