• With the Minswap Dapp going live on the test, users reported the issue of the only transaction per block.
• IOHK has come with an explanation about how the UTXO model of Cardano supports multiple transactions per block.

Last week, Cardano announced the support for the much-awaited smart contracts on the public testnet. Following this, the ADA price surged all the way past $3 hitting its new all-time high.

However, several users started facing issues and errors while swapping their tokens and providing liquidity. Ethhub.io co-founder Anthony Sassano pointed out some issues as the first DApp – Minswap – went live on Cardano on September 3.

Related: Why Cardano (ADA) is the next best investment choice for this Dogecoin (DOGE) millionaire

Sassano shared a series of screenshots highlighting these issues which first appeared on the Reddit thread.

The first dapp went live on Cardano today and ADA fanboys are finally discovering that you can't peer review your way out of fundamental issues. pic.twitter.com/tYQXNcVKGN

— Anthony Sassano ?? (@sassal0x) September 4, 2021

As a result, there were some strong misconceptions that stated – Cardano is allowing only one transaction per block. Meaning only one user can interact with the smart contract per block/transaction, and the only way to solve is through centralization.

There was a huge discussion in the crypto community as the news spread quickly in the market. However, SundaeSwap later came up with an interesting explanation as to how the Cardano blockchain employs a UTXO model supporting 100s of transactions per block.

It further noted that a single smart contract can govern many UXTOs. Thus, centralization is not the only option to solve these issues.

IOHK – Busting  the FUD and misinformation

Cardano’s parent company Input Output Global (IOHK) also came with its defence citing the article from SundaeSweep Labs. It noted that Cardano is a UTxO (Unspent Transaction Output) blockchain. Thus, it has different programming paradigms on DApps than compared to other blockchains like Ethereum. In a series of tweets, IOHK explained:

The specific flavor #Cardano uses is the eUTxO – or extended model which we believe offers greater security, allows for fee predictability (no nasty surprises…) and offers more powerful parallelization.

And to be clear, dapps are NOT limited to 1 transaction per block. By designing your service or application with multiple UTxOs, you can enforce more parallelism. This is inherent and – we believe – one of the advantages to eUTxO design as we have implemented it in #Plutus.

IOHK said that it will release further details this week explaining why its technical model is preferred. Furthermore, that will also release technical documentation to assist developers.

IOHK also acknowledges the fact that its approach is a “novel one” and requires a different approach. Some of the players from Cardano’s core developer team are currently identifying ways to address this issue.

IOHK further noted: “We are very pleased to see that developers are already testing on the #Cardano Testnet as they continue to prepare their DApps for market. Congratulations to @MinswapDEX. This is what a testnet is for. Please give them your support”.

Often touted as the Ethereum-killer, the Cardano blockchain has gained immense popularity recently. As it progresses with introducing new functionality, there will be some roadblocks, but Hoskinson and his team are eager to address them.

As of press time, ADA is trading 2.17 percent up at a price of $2.89 and a market cap of $92.6 billion.