High level questions regarding cardano smart contracts


I have a few questions regarding how best to deal with the challenge of using ADA, or custom token, or fiat, in a smart contract (SC).

Assume the SC is something simple like a load - the Lender loans a currency, and expects to get a regular repayment. This simple use case is obviously achievable using Cardano, however there is the following challenge.

For such a service to be adopted it requires participants to (a) purchase some ADA or (b) purchase a custom token or © somehow have the smart contract work with fiat. Are there others I havent thought of?

Getting participants to purchase ADA increases the adoption challenges. Most people have heard of Bitcoin, but few own some, and even less have heard of, or hold, any other crypto.

Having a custom token that is pegged to a local currency could work, but this would still require fiat on-ramps. A custom token that isnt pegged will likely diverge from the local currency over time.

Perhaps a SC could pull in external information. Is this what Oracles do? In the use-case of a loan, it would likely need to check an external bank account for a specific transaction. This sounds complicated, but perhaps not impossible.

I’m interested to hear how others are looking to address this issue regarding barriers to entry.


look into ergo, they just created an oracle for cardano to use when goguen is up and running… Also check out Marlowe playground for some easy to make financial contracts… you can look at my video on it also if you would like…

hope this helps,

Yes the addition of Oracles - and they way Cardano is implementing them - sounds very exciting!

I guess then, with oracles, a custom stable token could be created, and this could be used as the underlying value for a SC based security.