What is the Alonzo Testnet?Alonzo Testnet pays homage to US mathematician Alonzo Church. He was one of the founding fathers of computer science. The main purpose of Alonzo Testnet is the deployment and activation of Plutus for smart contract support. Plutus was specially designed for Cardano and is a programming framework and platform that will enable smart contracts on the Cardano blockchain.
The upgrade will put in place the required infrastructure for the deployment of dApps, DeFi, NFTs and a DEX. Previously, a date for Alonzo was set in March but has been moved to 12 September.
Alonzo is divided into three color-coded phases that will be rolled out in phases. They are:
- Alonzo Blue
- Alonzo White
- Alonzo Purple
How will Cardano’s first DEX work?As you may know, a decentralized exchange (DEX) allows for low trading and swapping fees and gives crypto holders control over their crypto assets. However, every DEX is unique and requires different blockchain features to operate. SundaeSwap will thus be the first DEX developed on the Cardano network following the successful implementation of Alonzo.
What sets SundaeSwap apart from other DEXs is the introduction of a new fundraising method called Stakepool Offering (ISO). SundaeSwap’s native token will be SUNDAE token that will be available directly on the Cardano network and not on Binance Smart Chain. By implementing this approach, ADA holders can stake their tokens in the Daedalus or Yoroi wallet and receive SUNDAE tokens.
Looking at the bigger pictureCardano is also known as the Ethereum killer since it aims to compete with Ethereum features like smart contracts etc and eventually outperform it. In order to accomplish this, Cardano has to undergo five developmental phases - Byron, Shelley, Goguen, Basho and finally Voltaire.
To summarize, the Byron era saw the creation of a healthy foundation for Cardano and ADA. Shelley, which was launched in July 2020, enabled a staking-based decentralized economy. The current Goguen era will deliver smart contract functionalities. Following the successful Alonzo upgrade, Goguen Mainnet will be launched on 12 September 2021.
In the final phases, ADA stakers will be able to vote on future developments on the network and make Cardano a self-sustainable and fully decentralized ecosystem.