Do problems in the first public testnet dApp after the Alonzo hardfork imply the ‘death of Cardano’?

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Amid much community fervor, Cardano’s Alonzo testnet hard fork finally took place last week.The integration of Plutus smart contracts into the network, which would allow it to dramatically increase its features, was the main source of excitement. The community’s enthusiasm was clearly reflected in Cardano’s native token ADA’s bull run, which set new ATHs all month.

However, after giving it a try, people stated that Alonzo was not all that it was hyped up to be. Many have complained about encountering issues while attempting to swap tokens and provide liquidity since the first dApp, multi-pool DEX Minswap, went live on the Cardano public testnet. The Minswap also addressed the concurrency-related problems on Twitter.

While Cardano is no stranger to online trolling and criticism, Minswap’s difficulties with handling multiple users became the most commonly cited excuse for its haters. Many have claimed that Cardano’s decision to use the unspent transaction output accounting model (eUTxO ), was the reason behind this failure. Further, that future DEX’s looking to build on the network will face similar liquidity issues.

Concurrency issues often result in the prevention of multiple users from interacting with the protocol at the same time. This is likely due to the absence of a “Cardano Virtual Machine,” akin to what Ethereum deploys, as it allows smart contract operation to run concurrently. Others have claimed that since Minswap was only able to handle one transaction per block, it was usable.

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Ethereum supporter, Anthony Sassano highlighted these issues in a Twitter thread recently.

However, many supporters have hit back at the harsh criticism, including Cardano founder Charles Hoskinson, who called these comments “noise and FUD.” In a recent video addressing these issues, he said,

“The problem our industry has is, it basically says well if you don’t support my thing or I can’t see a way to make my thing work, what you have constructed is absolutely useless, forever useless, and it’s just a toy. And then they use vanity metrics, not even understanding what they are saying.”

Moreover, decentralized Cardano-based exchange SundaeSwap Labs dispelled some common misconceptions about the issue in a recent blog post. According to the DEX, it was possible to carry out hundreds of transactions per block and that centralization was one of the ways to solve the issue. It also added that this hurdle did not spell out the death of Cardano, stating,

“So to the people claiming this is the death of Cardano: unlikely. To point to one rocky experiment in the earliest of early days of an ecosystem and hold it up as the fatal omen of Cardano’s downfall is premature naïveté at best, and intellectual dishonesty at worst.”

Moreover, the Cardano dev team Input Output HK also published a Twitter thread clarifying many of the users’ concerns and “misinformation.” To begin, the corporation stated that the eUTxO architecture was chosen because it “provides higher security, fee predictability, and more powerful parallelization.”

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IOHK also proposed that users might continue to construct dApps on the network and expand block restrictions by “designing your service or application with numerous UTxOs to ensure additional parallelism.” The company will publish a blog post later this week that will go into greater depth about these features.

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