IOHK, a Hong Kong-based enterprise specializing in blockchain-based finance solutions, launched its second Cardano smart contract testnet dubbed “IELE” on July 30. IELE offers secure and efficient financial infrastructure to its potential users, in the form of a virtual machine designed to execute smart contracts on the Cardano blockchain. Additionally, developers will have a chance to fully explore the smart contract technology and give their feedback to IOHK.
New Virtual Machine for Smart Contracts
Without sounding too technically cumbersome, IELE is basically a virtual machine using Solidity programming language to automatically execute contracts based on Cardano blockchain. IOHK, along with Runtime Verification, developed the project, with the latter providing funding.
Charles Hoskinson, CEO of IOHK and founding member of Ethereum, said,
“Developers will have far better security and performance with smart contracts on Cardano, thanks to our work with Runtime Verification. I’m delighted to bring this technology into the industry as everyone benefits when blockchain matures into solid and dependable infrastructure people can trust, without fear of bugs or flaws.”
Second Smart Contract Testnet
BTCManager reported on May 29 about Cardano’s very first smart contract launch, the KEVM testnet. The same day, IOHK reported on its official blog, plans for its upcoming second Cardano testnet, IELE. At the time, it was stated that IELE would allow its developers the flexibility to write, compile, and successfully execute smart contracts with higher standards of security and performance than the KEVM testnet.
The actual testnet isn’t far off from the promises made. Currently, the IELE testnet serves as a common, lower-level platform which can efficiently translate and execute smart contracts from the more advanced languages. As of now, IELE supports Solidity programming language, with support for more languages still in the pipeline. Also, IELE will be powered on a register rather than a stack-based architecture. For the uninitiated, in a register-based virtual machine, the data structure within which the operands are stored is based on CPU register units, whereas in the case of stack-based, logic compilation is done through stacks.
Application of Smart Contracts in Real World
Before pondering over the real world utility of smart contracts, it is useful to understand what exactly a smart contract is. Most basically, a smart contract has the same purpose as a traditional contract in terms of specifying terms of an agreement. However, what makes a smart contract “smart” is that it can perform actions. More information about the features and possibilities of smart contracts can be accessed here.
When it comes to Cardano’s interest in smart contracts, it is worthwhile to mention that the firm holds blockchain-based contracts in a very high regard. As per the official blog post, Cardano’s primary aim is to foster a business environment that executes contracts with minimal or nil transaction costs. The smart contracts, also known as blockchain contracts, have proven to be an excellent tool to save time, decrease cost of execution, and reduce need for third-party involvement.