Cardano Alonzo upgrade is imminent, and the “Ethereum killer” may show its “killer weapon” after the introduction of smart contracts

Ethereum has been leading in smart contracts and NFTs so far, but this has also led to first-mover disadvantages. The success of the Ethereum blockchain has come at the cost of a high user experience, with intermittent network congestion and high transaction fees. Many developers are currently waiting for the launch of Alonzo and eventually move to the Cardano chain.

Ethereum’s ecological moat does not prevent developers and projects from moving to Cardano. On the contrary, the switch is not difficult for them. The ERC20 converter developed by IOHK ensures seamless interoperability. In addition, there is the EVM compatibility and implementation of financial regulatory guidelines listed below.

As competition intensifies, the Ethereum network is losing some of the unique selling points that have made it what it is today.

Cardano’s new killer feature — Milkomeda sidechain

DcSpark is already an established company in the field of DLT solutions and will now support Cardano in developing its first sidechain (Milkomeda). The cornerstone of the sidechain is Wrapped ADA (wADA), while creating EVM (Ethereum Virtual Machine) compatibility. DcSpark developers are creating a smart contract environment that will be compatible with sidechains of other blockchains at a later stage.

“We believe that Milkomeda’s flexibility and potential will bring entirely new standards to some of the most promising smart contract blockchains and their ecosystems,” dcSpark CSO Robert Kornacki told Reuters in an interview.

The current positive impact for users is that smart contract transactions can be processed through the sidechain without having to leave the Cardano mainnet.

“We don’t believe that one blockchain will eventually dominate all others. Instead, the key to success is collaboration,” IOHK CEO Charles Hoskinson explained in a recent video. “Sidechains are a key part of our vision for Cardano when it comes to interoperability and scalability. We were pioneers in proof-of-stake sidechains and we understand how important they are to the interoperability of our industry. Milkomeda is a valuable addition to the Cardano ecosystem as it allows developers to benefit from Cardano’s speed, security, and lower transaction costs. What’s more, it does not involve changing wallets or using a whole new operating system.”

Anti-money laundering and supervision

Cardano has taken another step forward in terms of anti-money laundering guidelines. The partnership with Coinfirm enables the Cardano Foundation to use the anti-money laundering capabilities built by the company. It implements financial regulatory guidelines that are essential for receiving financial services. Thus, potential fraud is avoided from the outset.

“Coinfirm welcomes the integration of the Cardano protocol into our AML platform. This will ensure that parties transacting using the ADA cryptocurrency and other assets created on Cardano are protected from illicit funds. This enables financial institutions to benefit from a smooth transition to fully adopt the protocol and address AML/CFT compliance concerns,” said Sachin Dutta, Coinfirm’s head of marketing, in the partnership announcement.

South Korea’s financial regulator recently announced that it will soon shut down 210 exchanges if they fail to implement and comply with anti-money laundering guidelines. The signal sent by South Korean regulators makes it very clear how important anti-money laundering is to the future of blockchain technology in general and DeFi in particular.