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Cardano’s Next Upgrade to introduce Smart Contracts through Plutus Platform

Cardano's Next Upgrade to introduce Smart Contracts through Plutus Platform

Cardano, a blockchain platform, is ready for its next major upgrade, introducing smart contract capabilities via its native Plutus language. Cardano has provided detailed information on Plutus, its native programming language used to write smart contracts following its next upcoming upgrade, Alonzo. According to a blog post on April 13, IOHK, the firm behind Cardano, mentioned that Plutus contracts consist of parts that function on-chain and parts that operate on a user’s machine off-chain.

The blog post briefed that both parts are in the Haskell programming language, but Plutus compiles it, which offers the framework for smart contracts on Cardano. Like Bitcoin, Cardano employs the UTXO (unspent transaction output) model to create unspent outputs from prior transactions. Nevertheless, the network has developed upon this to use an extended UTXO model (EUTXO), which provides unique benefits over other accounting models.

Plutus Core will Decide EUTXO Transactions.

Furthermore, the EUTXO model significantly checks the validity of transactions off-chain before transferring them to the blockchain. This is in contradiction to Ethereum Layer 1, which processes transactions all on-chain. It can also manage transaction execution costs off-chain before transmission, which is another unique characteristic. Plutus Core will determine these EUTXO transactions’ parameters and collect the code developed for smart contracts. A PAF (Plutus Application Framework) will offer easy access to services and applications operating on the network with full web browser interoperability.

Moreover, Cardano also launched native tokens in February’s ‘Mary’ upgrade to enable users to develop uniquely styled custom tokens and conduct transactions with them. Moreover, Plutus will elaborate on current token capabilities, vastly increasing minting policies that will profit NFTs, requiring time locks. Plutus is a component of the Alonzo upgrade, a significant upgrade stage on the Cardano roadmap that interjects smart contracts and building dapps. At the time of publication, Cardano’s native ADA token was down by 2.3% on the day at $1.45, according to Coingecko. It reached an ATH (all-time high) of $1.53 on Wednesday, April 14.

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