The blockchain contract of the century for Cardano (ADA)

By: Bharggavi Ssayee

The blockchain contract of the century for Cardano (ADA)

April 28, 2021 4:19 PM

IOHK, developer of the Cardano blockchain, formalizes a major contract with Ethiopia. According to the company, this is the largest blockchain deployment in the world. Enough to make the ADA climb?


What is the main factor behind the value of Ether, which chains ATH? Without hesitation, the importance of activity on Ethereum and therefore the size of its ecosystem. Rival blockchains are not ignoring it.


To compete with Ethereum, they must therefore demonstrate the value of their technology and sign contracts. Cardano has an announcement to make in this area. Its developer, IOHK, formalizes a government contract.


Africa, land of promise for Cardano

The company says it has signed a partnership with the Ethiopian authorities to deploy blockchain technology in the country. According to IOHK, this is no more and no less than the largest deployment to date in the world.


The project plans to use the Cardano blockchain to deploy a new identity management solution to all schools in Ethiopia. This includes 3,500 schools and 5 million students.

The purpose of this project is to create tamper-proof school records for all schools and students. Africa is a major market for IOHK CEO Charles Hoskinson. Several months earlier, the leader mentioned several upcoming contracts on the continent.


In addition to Ethiopia, the publisher is negotiating in South Africa, Kenya and Nigeria. Hoskinson, a figure little appreciated by Ethereum enthusiasts, also referred to a contract with a telecom operator in Tanzania.


The ADA price sensitive to this contract?

For IOHK, associated with Atala Prism for identity management, Cardano should ultimately “democratize social and financial services for the 1.7 billion unbanked people in Africa. "


This democratization remains to be built, however. Cardano begins with Ethiopia and its 110 million people. The country has launched a digital transformation plan, Digital Ethiopia 2025. However, its recent news also highlights its political and economic instability.


This contract currently has little influence on the price of ADA, Cardano's native token. The cryptocurrency was trading at $ 1.28 on CoinMarketCap at the time of writing, up 1.57%.


It is first in the area of ​​staking that Cardano stands out. According to StakingRewards, the network occupies the first place in this matter. The value of the ADA thus allocated to staking is equivalent to approximately $ 26.4 billion.