In the discussion about the quality of the upcoming upgrade Alonzo at Cardano (ADA), the world’s main crypto exchange Binance has signaled support for the official course. September 12 is the deadline.
Cardano (ADA) has not had it easy in recent days. Anticipation over Cardano’s major upgrade Alonzo, due on September 12, turned into a discussion about whether Alonzo really makes ADA fit for DeFi. Now crypto exchange Binance has taken a stand via a statement: They will not quarrel and will fully implement Alonzo at Cardano. Since more than a quarter of global trading takes place with ADA at Binance, this is a clear signal in favor of Alonzo.
Technologically, Alonzo at Cardano is a hard fork, meaning a profound change in the base code that will no longer be backward compatible. If a large number of network points chose not to implement Alonzo, two separate blockchains would emerge and ADA would get competition in the form of Cardano before the hard fork. However, current data from PoolTool shows that more than 80 percent of the nodes have already updated their software to version 1.29.0 and are thus prepared for Alonzo. In this respect, Cardano is not expected to experience an unharmonious hard fork like Bitcoin Cash had to experience in November 2018, where it weighed on the price development.
Upgrade Alonzo at ADA – what you need to know
Alonzo will be unlocked on September 12 when it reaches epoch 290 in the Cardano blockchain. It is expected to be at 23:44 German time on Sunday evening. Binance has announced that it will temporarily shut down ADA deposits and withdrawals half an hour beforehand and then restart them when the network on Cardano is stable again. This is not expected to take long. ADA trading would not be suspended during the upgrade. Other crypto exchanges are likely to proceed similarly. So you normally do not have to worry about anything in terms of Alonzo at Cardano, but just be prepared for the fact that no ADA can be deposited or withdrawn from crypto exchanges for a short time on Sunday night.
Conclusion: Does Alonzo meet the high expectations at Cardano?
When Alonzo was unlocked in Cardano’s test day, ADA’s price skyrocketed to an all-time high of over $3. Currently ADA is trading at around 2.50 US dollars and the price will be affected by whether Alonzo really clears the way for Cardano’s success in the booming DeFi sector. The coming weeks and months will show whether developers will be able to deal with the controversial features of Alonzo Smart Contracts and thus position Cardano attractively for DeFi and other use cases.
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