Cardano has successfully launched its first zero-knowledge (ZK) smart contract on the mainnet, marking a major accomplishment. The transaction was done by Input Output with the use of Halo 2 zkSNARK technology and proves Cardano’s focus on innovation and scalability in the field of blockchain.
Sebastien Guillemot, the co-founder of dcSpark, said that this transaction is the starting point of ZK applications on the Cardano network. Electric Coin Company initially developed the Halo 2 proving system to perform and validate cryptographic proofs without having to rely on a trusted setup.
71579b77ab7d974eb31ef1b50d58f14f2ceac2bcf540aac50f777f56a8f24bffThat's the transaction hash of the very first ZK smart contract (Halo2) on Cardano mainnetPowered by the new Plutus v3, the zk era will bring both zkApps & partnerchains like @MidnightNtwrk settling on Cardano💪 pic.twitter.com/7Ulg3vodXA
— Sebastien Guillemot (@SebastienGllmt) November 26, 2024
The first transaction was meant to freeze the funds, and the second one used a Zero Knowledge proof from Halo 2 to unfreeze them. This process took some time and involved a small cost of 2.03ADA, about $1.90, which can be considered “reasonably low” by Input Output Holdings.
Some of the features of Halo 2 are recursive proofs that allow the breaking down of big problems into a series of simpler problems. This feature is important for enhancing the Blockchain scalability and connectivity.
Advancing Blockchain Security and Efficiency
Input Output highlighted this development on their social media platforms in detail. Zero-knowledge proofs enable the validation of computations without the need to disclose the information that was used. This in turn leads to increased privacy and faster computation.
The recursive proof capability that is built into Halo 2 can also be useful in enhancing Cardano’s scalability. The technology simplifies complex processes to provide the foundation for more efficient interactions in the ecosystem.
This development is in line with Cardano’s operational and growth strategy of scaling up and innovation. It also coincides with Charles Hoskinson, the CEO of Cardano, proposed plan to extend the use of Bitcoin to include DeFi. His vision is to make it easier for the Bitcoin community to directly engage with dApps without the need for other cryptocurrencies.
Just a brief reminder, having been around for a very long time and having read a lot of the early source code for Bitcoin, it's easy for me to get back into the mindset of Bitcoin's design and purpose. It's like a childhood friend that I lost touch with and re-discovered. I…
— Charles Hoskinson (@IOHK_Charles) November 26, 2024
According to Hoskinson, this can be done by building applications that are based on the Cardano architecture but will integrate with the Bitcoin economy and work around the existing problems of the Bitcoin network. This proposal aims to create a new form of application which captures the stability of Bitcoin and the flexibility of Cardano.
ADA Maintains Momentum
Cardano (ADA) is the latest cryptocurrency to break the $1 mark and even reached $1.15 over the weekend. However, the cryptocurrency has since pulled back by 17% as traders take profits. The recent price action is indicative of a market that is gradually becoming more and more developed for Cardano. The current consolidation phase of ADA looks quite promising for further growth as the cryptocurrency has strong support near $1.
$ADA finally reclaimed the $1 level this weekend, and while price is consolidating now, network growth is surging.The number of new user addresses hit its highest levels since June 2023. Is this the beginning of a larger breakout? pic.twitter.com/HzTIrenplC
— IntoTheBlock (@intotheblock) November 25, 2024
According to IntoTheBlock on-chain data, the network continues to exhibit high levels of activity, which is indicative of growing adoption. An increase in daily active addresses and user engagement shows that more people are still engaged in the Cardano ecosystem.
Cardano’s network growth has also reached its highest level since mid-2023. IntoTheBlock data suggests that new addresses are increasing, which is a positive sign of increased adoption. However, even after the recent correction, Cardano is still trading far from its ATH of $3.1. ADA is currently more than 230% below this peak.
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