Cardano Programming Language: A Game Changer in the Blockchain Industry - Webisoft Blog (2024)

Hey, did you hear? Cardano has taken a giant leap forward with the introduction of its new Alonzo Hard Fork, which became a hit right after it was launched on the network!

This exciting update hit the mainnet on September 13th, 2021, and guess what it brings? Yes, you’re right: the ability to develop and deploy smart contracts right there on the mainnet. How cool is that?

So, what’s the magic behind Alonzo? It equips Cardano with the power of smart contract capabilities. And it’s not just about adding functionality, it’s also about empowering users.

Alonzo incorporates Plutus scripts, which are written in simple, functional languages like Solidity or Haskell, and allows users to use these scripts. That’s like giving a paintbrush to an artist and saying, “Paint your imagination!”

But hey, before we get too caught up in the excitement around the Cardano programming language and its smart contract update, let’s ensure we all know what we’re talking about. So, what’s a smart contract? Let’s dive into that, shall we?

What are Smart Contracts?

Smart contracts are like self-driving digital agreements. They’re programmed to carry out tasks automatically and, once set, they remain fixed and unalterable. What’s more, they operate independently, without the need for intermediaries or any third parties involved.

Now, smart contracts can fall into two main types. Let’s break them down:

For the first type, imagine you’re looking to move some value from one person (or group) to another. Now, this value needs to have some rules and conditions attached to it, and there has to be some kind of event to kick things off. That’s what we call a financial contract. These contracts are best when crafted using a domain-specific language.

In the second scenario, you’re aiming to build an application. Think of this application as a trio:

• First, you’ve got the client, which is the program running on your computer.
• Then, there’s the server, which runs on someone else’s machine (or multiple machines).
• And finally, you have the smart contract. This little piece of code allows for decentralized operations to happen.

What are Cardano Smart Contracts?

Think of them as an advanced, souped-up version of the original blockchain concept – they’re part of what people are calling Blockchain 3.0.

Here are some cool features:

Next-Level Blockchain

Cardano is a decentralized, public blockchain platform that uses smart contracts. It’s open-source, which means anyone can contribute to its development, and it supports Decentralized Applications (DApps).

Ethereum Killer

You’ve heard of Bitcoin and Ethereum, right? Well, Cardano aims to outperform them both in terms of interoperability, scalability, and sustainability. In fact, some people are even calling Cardano an “Ethereum killer”. Watch out, Ethereum!

Proof of Stake Consensus Mechanism

Cardano uses a Proof of Stake (PoS) consensus mechanism. This makes it a more robust and scalable blockchain.

And don’t worry, “Proof of Stake” just means that the creator of the next block in the chain is chosen based on the amount of the cryptocurrency they hold and are willing to ‘stake’ for the validation of transactions.

Unique Design and Math Concepts

One of the cool things about Cardano is its special multilayer design and use of mathematical concepts. These allow it to stand out as a top contender in future cryptocurrency solutions.

So, in a nutshell, Cardano smart contracts are part of an advanced, high-tech blockchain platform that’s trying to up the game in the world of cryptocurrencies. Exciting stuff, right?

History of Cardano: The Background

Let’s take a walk down memory lane and see how the amazing Cardano platform came into being, before we dive into the nitty-gritty of Cardano smart contracts!

The First Step

The Birth of Bitcoin – It all started here, with Bitcoin coming onto the scene as a decentralized, open-source platform. But the drawback? Lots of rules and regulations needed to be navigated for transactions.

The Second Leap

The Rise of Ethereum – Ethereum made blockchain feel more like a programming language, making customizable transactions possible. And voila, it quickly became the largest blockchain platform with a massive support community.

The Third Evolution

Quest for Scalability, Interoperability & Sustainability – At this point, we had a platform to trade Bitcoins and make transactions. However, there were restrictions. Ethereum then rolled out Version 2, offering better transaction facilities, albeit at a price: transaction fees.

The Final Frontier

The Emergence of Cardano – Developed by Charles Hoskinson in 2015, Cardano arrived as a full proof-of-stake-cryptocurrency, aiming to tackle three major challenges: Scalability, Interoperability, and Sustainability.

Cardano (ADA) is among the more promising recent additions to the blockchain scene, although it’s not the most user-friendly yet.

Building Cardano smart contracts can be tricky, especially since it involves the use of Haskell, a highly technical language that’s not exactly a walk in the park.

But don’t worry! You don’t have to go it alone. You can hire expert developers to make this task a breeze. In fact, teaming up with professionals for your development project can be a smart move, given the complexity of the Haskell language.

Having laid out the history, let’s dive in and explore why Cardano stands as the best platform for smart contract development.

Why Choose Cardano as Your Smart Contract Development Platform?

So, why should you pick Cardano as your go-to platform for smart contract development? Let me share a few reasons that make Cardano stand out from the crowd:

Top-notch Network Security

First off, did you know that 70% of ADA (that’s Cardano’s own cryptocurrency) is staked? This means that network security is sky-high, which is always a win when you’re looking for a reliable blockchain development platform.

Marlowe’s Ease of Use

Marlowe is a programming language that’s specific to Cardano. It’s designed for financial contracts, which makes it really straightforward to read, write, and understand these contracts.

So, if you’ve been worried about the complexity of contract creation, Marlowe has got you covered.

Vasil Hard Fork Upgrade

Here’s something to look forward to – the Vasil hard fork, set to launch in July 2022. This upgrade is all set to enhance the protocol, ramping up the throughput of transaction processing and enhancing the functionality of smart contracts.

Fast and Affordable

Last but definitely not least, Cardano offers speedy transactions and low fees. If you’re all about efficiency and cost-effectiveness (and who isn’t?), you’re going to love developing smart contracts on Cardano.

So, when you look at all these benefits, it’s easy to see why Cardano is an attractive choice for smart contract development. Give it a shot!

What Programming Languages Does Cardano Use for Its Smart Contract Development?

If you’re planning to develop smart contracts on Cardano, you’ll mainly be dealing with three languages. Let’s get to know them a bit:

Marlowe

First off, we’ve got Marlowe. Now, Marlowe is a domain-specific language (DSL), specifically designed for creating blockchain applications aimed at financial transactions.

Compared to a general-purpose language, Marlowe offers a bunch of benefits:

• Enhanced security
• Assured certainty
• Guaranteed completion
• Ahigh degree of behavioral correctness.

Here’s the cool thing: Marlowe’s design ensures that contracts have a defined duration, will definitely come to an end, will operate within a set timeframe, won’t hold any assets when closing, and are really good at preserving value.

Plutus

Next up is Plutus. Plutus is the powerhouse that drives Cardano’s smart contract platform. It allows you to develop apps that can interact directly with the Cardano blockchain.

The awesome thing about Plutus is that it allows all programming to be done in Haskell using just a single library, and it doesn’t require developers to test their work on a full Cardano node.

With Plutus, you can create:

• New tokens
• Build smart contracts
• Support simple multi-signature scripts.

Haskell

Finally, we can’t forget Haskell. Haskell is the foundation of Plutus and the key language used by Cardano for smart contract creation. It’s also the language that powers Marlowe.

Now, Haskell might not be at the top of Google’s rankings, but Cardano picked it for a good reason. You see, Haskell is really good at writing solid, robust code. The language was named after the renowned American mathematician Haskell Curry, who was big on functional programming languages.

Being a functional language, Haskell helps in creating high-assurance codes that require a certain degree of formal verification. Because Haskell offers such a high degree of certainty, it gives Cardano developers confidence that the code they implement is sturdy and correct.

So there you have it: Marlowe, Plutus, and Haskell – the trio of languages you’ll get to know when working on smart contracts with Cardano. Happy coding!

How to Create Cardano Smart Contracts

Let’s break down the steps of creating a smart contract on Cardano using Marlowe. There are eight key steps you’ll need to follow:

Pay

This is where a payment agreement is made. You’ll transfer a certain value of a token from one account to another. It can go to either a participant or another account in the contract.

But be careful here – if there are insufficient funds or the value is negative, you’ll get a warning. If there’s not enough in the account, a partial payment will be made using whatever funds are available. After this, the contract continues as indicated by the term ‘cont’.

Close

This step involves terminating the contract. The sole purpose here is to pay back owners of accounts with a positive balance.

This is done for each account but in just one transaction. Before you get to other types of contracts, it’s crucial to understand values, observations, and actions.

Values, Observations, and Actions

‘Values’ are numbers that change over time – like the current slot number or the balance of a token in an account. They can be adjusted by addition, subtraction, or negation and can also depend on an observation.

Observations, meanwhile, are Boolean values you get by comparing values. Actions occur at certain points during execution and can involve depositing money, selecting one of several options, or declaring some external value.

Oracles

These are a big deal for Cardano and its users. Oracles are modeled as decisions made by a participant with a specialized Oracle role, like “Kraken”.

This participant can make a choice like “dir-adausd”, which is pre-filled with the current value of the direct ADA/USD conversion rate. This data is sourced from Cryptowat.ch. You can also get inverse rates by replacing the prefix ‘dir-‘ with ‘inv-‘.

If

This step depends on whether a condition is true or not. If the condition or ‘obs’ is true, the contract continues as ‘cont1’. If it’s false, it continues as ‘cont2’.

When

This is the most complex contract function. It’s triggered by actions that may or may not happen at any given time.

The cases in the contract explain what happens when certain actions take place. When a certain action happens, the state changes and the contract continues accordingly.

To make sure the contract moves forward, there’s a timeout clause that ensures the contract will continue as ‘cont’ when the timeout and a slot number are reached.

Let

In this step, a value is named with an identifier using the ‘let id Val cont’ function. This named value can then be used later in the contract.

It’s a handy way to capture and store data that changes over time, like a commodity’s current price or slot number.

Assert

The ‘Assert obs cont’ contract does not change the state of the contract. It just continues as ‘cont’. But, if the observation ‘obs’ is false, it will generate a warning.

This can be used to make sure a property holds at any point in the contract because the static analysis will fail if any execution results in a false assert.

Remember, each step is an opportunity to affect payments and create warnings. So, it’s essential to stay on top of the information supplied by the Marlowe values-observations and actions.

What Makes the Cardano Blockchain Stand Out from Other Blockchains?

Cardano stands out from other blockchains due to its unique features and approach to development. Here are the key points that make Cardano distinct:

Peer-reviewed Research

Cardano’s protocol development is based on rigorous academic research. The team behind Cardano ensures that the technology is thoroughly reviewed and validated by experts, bringing a high level of credibility to the project.

High-Assurance Code

The engineering of Cardano’s protocol utilizes high-assurance code, which means that it is built with a focus on security and reliability. This approach enhances the robustness and stability of the platform.

Functional Language

Cardano is developed using Haskell, a functional programming language known for its combination of academic and industry-grade expertise. Haskell brings a strong foundation of computer science principles to the Cardano blockchain.

Plutus Smart Contracts

Smart contracts on Cardano are written in Plutus, a smart contract language built on Haskell. Plutus provides a higher level of certainty and security compared to other smart contract languages. The use of Haskell and the peer review process ensures that the smart contracts are safe, well-tested, and reliable.

Scalability and Sustainability

Cardano is designed to be scalable and sustainable, addressing the limitations of other blockchains. The protocol aims to handle a large number of transactions while being energy-efficient, reducing the environmental impact often associated with blockchain technologies.

Interoperability

Cardano is built with interoperability in mind, allowing seamless integration with other blockchains and system architectures. This flexibility enables collaboration and the exchange of assets and information between different platforms.

Transparent and Secure

Cardano provides complete visibility to all parties involved in a smart contract. When properly constructed, it prevents any single malicious actor from engaging in fraudulent activities.

Stakeholder Governance

Cardano’s strength lies in its ability to function as a trustworthy platform for transferring and managing assets. The protocol incorporates a stakeholder governance model, allowing participants to have a say in the decision-making process.

Timeouts for Repayment

Smart contracts on Cardano can include timeouts to ensure that pledged funds are repaid after a specific period. This feature adds an extra layer of security and prevents funds from being locked indefinitely.

By combining academic research, high-assurance code, functional programming, and a focus on scalability and security, Cardano sets itself apart as a blockchain platform that aims to provide a robust and reliable infrastructure for smart contract development and asset transfer.

Where to Use the Cardano Blockchain Technology?

Cardano’s blockchain technology can be utilized in various industries and applications where transparency, security, and scalability are paramount. Here are some potential use cases for Cardano:

Crowdfunding

You know how crowdfunding works, right? It’s a democratic way for people to raise startup cash. Instead of asking for huge amounts from a few individuals or firms, you get small contributions from a bunch of people.

If the project reaches its funding goal, you use the money to complete it and give the final product to the backers. If it falls short, you return the money to the backers.

But, you know what makes it even neater? Using a Cardano blockchain-based smart contract for your crowdfunding campaign. It brings transparency and assurance to the whole process.

The contract takes time and actions of others into account. So, if you don’t hit your goal within the set time, the contract ensures the money goes back to the backers. On the other hand, if you do reach the target, the funds get sent to the project creators.

NFT Marketplace

Heard about the buzz around NFTs, right? You can create your own NFT Marketplace on the Cardano blockchain platform! This platform provides a high level of security, efficiency, and throughput.

It offers advanced technologies and integrations while keeping up with market trends. Plus, its user-friendly approach makes it easy for users to trade and create NFTs seamlessly. It’s like having your own online art auction house!

dApp Development

And, of course, there’s dApp development! Cardano is excellent for creating decentralized applications (dApps).

These applications can fall under various categories like DeFi, voting, identity management, games, you name it. The backbone of these Cardano dApps? Robust smart contracts written in Haskell. These smart contracts help create fast, reliable, and highly assured dApps, thanks to the help of Haskell and Plutus.

Plus, these dApps interact with the Cardano blockchain, executing transactions without any third party interference. It’s like having your own private, secure internet!

Mortgage

Buying a home can be exciting but the mortgage process? Not so much. But Cardano smart contracts can simplify this. These smart contracts can automate the mortgage process, making it easier for both buyers and owners.

But how does this work?

Well, the contracts need to be coded in accordance with the mortgage agreement. Then, they execute the processes automatically. It’s like having a robot mortgage broker!

Cross-Border Payments

Ever tried to send money abroad or pay for international goods? It can be a headache, right?

That’s where Cardano smart contracts can help. They can facilitate international goods transfers and payment initiations using something called a Letter of Credit.

This not only improves the liquidity of financial assets but also enhances financial efficiency across various stakeholders.

So, instead of struggling with multiple banks and wire transfer fees, you get a smooth, efficient process.

Legal

Legal contracts can be complex and time-consuming to execute. But with Cardano-based legal contracts, the process can be speedier and more efficient.

These contracts run on the blockchain and can be automatically executed, no lengthy paperwork needed. Plus, they come with a 100% security guarantee due to reduced execution risk and fewer intermediaries.

Imagine settling a contract dispute without ever stepping foot in a courtroom!

Gaming

In the gaming world, Cardano smart contracts are a game-changer (pun intended!). Gamers can join eSports teams without all the hassle of physical paperwork.

These contracts can hold info like the time spent playing for a team, number of tournaments won, scores, and more.

The best part? Payouts are automatically generated when certain conditions are met. It’s like your video game performance turned into real-world rewards!

As you can see, Cardano is not just a cryptocurrency, it’s a platform that provides innovative solutions for crowdfunding, building your own NFT marketplace, buying a house, making international payments, sorting out legal agreements, diving into eSports, and creating cutting-edge decentralized apps.

So, what’s your next big idea for using Cardano?

Frequently Asked Questions

Q. Can you explain how smart contracts on Cardano function?

Sure! Smart contracts on Cardano work much like their counterparts on Ethereum. You can think of them as digital agreements involving two or more parties. These contracts spring into action as soon as all the necessary conditions are met.

Q. Is it possible to build smart contracts using Cardano?

Absolutely! Cardano fully supports the development of smart contracts. You can program smart contracts on the Cardano blockchain using a few different languages, including Plutus, Marlowe, and Glow. However, it’s worth mentioning that to use Plutus, you’d need to have some prior programming experience in Haskell.

Q. How can I create an NFT marketplace with Cardano?

With Cardano’s advanced technology and integration capabilities, creating an NFT Marketplace becomes a feasible project. Cardano offers great features and functionalities, along with a user-centric approach. This combination can assist you in developing a user-friendly platform that facilitates smooth transactions and seamless NFT creation.

Conclusion

In wrapping things up, the Cardano platform is truly a game-changer in the realm of blockchain, primarily due to its advanced smart contract capabilities.

Whether you’re looking to build decentralized applications, set up secure NFT marketplaces, or automate legal contracts, Cardano’s distinctive Cardano programming language, including Marlowe, Plutus, and Haskell, are setting new standards.

The ease-of-use, unparalleled security, and sustainability of this platform truly make it stand out from the crowd. It’s a perfect choice for both businesses and developers seeking to leverage the power of blockchain.

Are you interested in harnessing the benefits of Cardano for your smart contract development needs? Look no further!

Our squad at Webisoft is well-versed in Cardano, among other blockchain technologies. We’re all set to guide you through this revolutionary landscape and build robust, secure, and efficient solutions tailored to your needs.