Cardano, the third-largest cryptocurrency in terms of market capitalization after Bitcoin and Ethereum, has been criticized after reports of Concurrency issues were discovered on the Testnet.
The Cardano (ADA) Concurrency Crisis
The Cardano team announced at the beginning of September that the smart contract function is now available in the Alonzo testnet. With the provision of smart contracts, the Alonzo mainnet upgrade is to be implemented on September 12th.
However, Ethereum supporter Anthony Sassano revealed in a tweet that the concurrency issue was found on Cardano-based decentralized exchange (DEX), Minswap. The DEX was launched on September 4th as the first Dapp in the Cardano testnet.
Concurrency problems usually manifest themselves in a way that prevents multiple users from interacting with a program or protocol at the same time. In the case of Cardano, the problem may be due to the lack of a “Cardano Virtual Machine” – a global state like the Ethereum virtual machine – that allows smart contracts to be carried out at the same time.
According to one of the screenshots posted by Sassano, users encountered a transaction error while trying to exchange tokens. Some community members fear that Minswap will only process one transaction per block, which is inefficient.
In response to this obvious problem, Cardano founder Charles Hoskinson stated in a video that the simultaneous criticism was a dishonest description of the project, adding:
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.”
According to the makers of Cardano, building a decentralized and scalable distributed system is a daunting task.
Concurrency Crises Does not Mean the End of Cardano
At the same time, IOHK, the research and development company behind Cardano, also published a tweet in which the so-called “misinformation” about Cardano’s ledger method was discussed. A Medium blog post published by Cardano-based DEX SundaeSwap Labs further resolves some misconceptions about Cardano.
According to the article, hundreds of transactions can be made in each block. SundaeSwap also stated that centralization was one of the ways to solve the problem. At the time, DEX pointed out that the problems encountered in the testnet did not mean the death of Cardano.
“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. “