Plutus is superior to other Smart Contract programming languages. Does hoarding lead to centralization? Is the Cardano project undervalued?
Hoskinson's Plutus remarks came in the wake of the hack conducted against the DeFi MonoX Finance service, assuring that in addition to human failures, the choice of a suitable programming language and a good network are fundamental.
The CEO of IOHK and leading developer of Cardano, Charles Hoskinson, ratified again that the Blockchain project that he and his team drive are superior to Ethereum and other Smart Contract networks in light of the recent DeFi MonoX Finance hack.
Plutus more secure than Solidity?
In this regard, Hoskinson stated that the attack may have been averted if a more secure programming language had been used instead of Solidity, recommending Plutus, which Cardano now employs to build Smart Contracts in its network:
"This is why we wrote Plutus for Cardano. Good languages and tools work with the developer and the auditor, allowing them to write excellent and secure code. Bad languages load and hand them the gun with which they shoot themselves."
It appears that the hacker responsible for the MonoX attack exploited a vulnerability present in the code used in the smart contract to manipulate tokens associated with the protocol. He inflated its prices and exchanged funds for other assets on the Polygon and Ethereum networks, resulting in losses of over $31 million in various cryptocurrencies.
As such, Hoskinson pointed the finger of blame at the MonoX developers for failing to adequately address the security aspects of its DeFi platform, agreeing with other critics who point out that the problem essentially lies when developers don't do the tasks they are supposed to perform well.
With Plutus, this would not have happened
Although Hoskinson claims that this would not have happened with Plutus, he also points out that the language was explicitly designed and constructed in Haskell to give greater assurances and adaptability for various use cases.
As such, the Smart Contracts developed with Plutus are Haskell programs, providing an easy way to check that everything is OK and for audits to detect problems if there are any.
Cardano developers established Plutus to improve what people observed in Solidity and other programming languages used for Smart Contract construction. While Hoskinson is enthusiastic about what Cardano offers, it is unclear how DeFi will operate inside its network. Thus the community is still waiting for outstanding initiatives to begin running shortly. However, fans and investors have high hopes for the project.
Whales control more than 90% of the circulating ADA
10% of whales operating in the Cardano ecosystem control 94% of circulating ADA, data reveals. At least some 31 billion ADA would be housed in the top 10% of wallets with the most capitalized funds, indicating a high concentration of Cardano currency in the hands of a few investors.
An article published by the Finbold portal reveals that 94% of the current circulating supply of Cardano ADA tokens would be in the hands of crypto whales. As such, research conducted by the Finbold team with data from Blockchain analytics firm, CoinMetrics, reveals that at least a total of 31 billion ADA, valued at $37.8 billion at the time of editing, would be in the hands of 10% of the crypto whales operating on the Cardano ecosystem. Such a figure jumps out, taking into account that as of December 13, there are just over 33.428 billion tokens in circulation.
Deeper into the data, the figures reflect that the concentration of ADA in crypto whale wallets started to increase steadily since the beginning of 2021. Some estimate that such addresses have been growing their token holdings by at least about 1 billion throughout this year.
Hoarding rather than selling
Regarding the whales in question, the report points to the fact that these address owners dedicate themselves to accumulating ADA, something they have been doing throughout this year during the development team's constant progress. Let's keep in mind that a few months ago, the network officially implemented support for Smart Contracts, which will lead to the arrival of many use cases that take advantage of the benefits offered by its Blockchain network.
One of the most awaited announcements by Cardano enthusiasts is the arrival of DeFi platforms to its network. One of the contenders already taking steps in this area is SundaeSwap, which has already launched its public test network and will be ready in the coming weeks for full-fledged operations. More about Cardano DEXes soon in this blog. Stay tuned!
These expectations reinforce the thesis behind the whales' interest in accumulating more ADA throughout 2021, as the DeFi ecosystem, in general, has been having a lot of success in different networks such as Binance Smart Chain, Solana, and Avalanche.
However, other published reports suggest that the current expectations around Cardano are also present on other Blockchain projects. Those projects pose an ideal scenario for sectors such as DeFi and NFTs. Those projects, including Polkadot, seem to be in the focus of interest for many investors and developers precisely because of the possibilities they pose for the not too distant future.
Is the Cardano project undervalued?
Several research agencies point out that the crypto community and investors undervalue Cardano because of the influence it might have in the following years, with networks like Avalanche and Solana seizing on the headlines of many studies these days.
This thesis is supported precisely by a study published by Grayscale. It indicates that the network has a lot to offer. It can operationally surpass what Ethereum, the network that concentrates the bulk of Blockchain activity today, currently has on its hands.