- ADA coin price has observed a low of $2 recently despite making a high of $3 in the past trading session. It has lost more than 30% in the recent trading session
- Cardano is nearing its Alonzo update but the users are getting concurrency related errors in the latest Dapp on its mainet.
What Is The FUD About The ADA Concurrency?
Cardano uses the E utxo model which consists of the BTC UTXO model and the traditional accounting model. Since Cardano uses both models it is called the “Chimeric Model”. The explanation of this method might be lengthy, so in short it has a very high privacy and uses a POS model which is better for the environment.
The misconception twirling around this method is that it uses only one transaction per block and only one user can interact with the smart contract per block. It is quite opposite to the truth.Cardano permits a given transaction output to be spent at single time, by a single transaction, so the protocol that gives multiple people access to the same might see contention issues. The point of contention is around UTXO but various UTXO can be governed through smart contracts.
The first Dapp of the Cardano was Minswap, which soon after launch started to face concurrency errors. In simple words Concurrency overlapping execution of the multiple interacting computational tasks. The problem with this model is that it might be difficult to use for the Defi, as per various critics of Cardano.
This FUD might have been blown out of proportion which pushed the price down.Charles hoskins defended it by saying that the minesweeper was not developed by experienced developers and they are working to eradicate this problem,
ADA Coin Price May Soon Revert To The Uptrend
Cardano has recently seen a fall of more than 16% in the intraday time frame and is trading near the value of $2.4. It might be due to the FUD in the market or the fall in BTC. ADA prices may soon revert to the uptrend and reach a new high in the future. The Alonzo update can act as a strong catalyst for the price.
Conclusion
The critics of Cardano have been blowing Minswap issues out of proportion. Saying Cardano is fundamentally flawed due to Minswap is like saying Wright Brothers Flight Failed because it does not have a cabin crew. ADA smart contracts in the future have more applications than one can forecast.
Technical Levels
Major Resistance:$3.2
Major Support: $2