According to a blog post shared by IOHK, after IOG, the company behind ADA, announced that it will launch a new EVM sidechain this year. cardano developers will soon be able to create ERC-20 tokens.
Cardano Developers Will Soon Be able to Create Ethereum Blockchain Tokens
It was stated that the purpose of the planned sidechain is to allow ADA developers to create Solidity smart contracts and generate EVM-compliant decentralized applications and ERC-20 compatible tokens.
One of the critical features of the EVM sidechain is full compatibility with Ethereum updates and tools, Web3 wallet compatibility, and the use of the Proof of Stake Ouroboros Byzantine Fault Tolerance consensus protocol. In addition, the sidechain will be secured from the Cardano mainnet.
Blockchain interoperability has always been key to #Cardano ecosystem growth.
In this post, we take a look at bridges, sidechains, the role of the $AGIX ERC20 converter & more and how they will enable new traffic between blockchains. https://t.co/ZikZiFIkDG
— Input Output (@InputOutputHK) April 28, 2022
“It Is Critical to Interoperate With Other Blockchains”
In the shared blog post, it was stated that the ADA community is working on the wider adoption of Cardano. Interoperability, which means being able to work with other blockchains, is critical, according to IOG.
IOHK, the company behind ADA, said in a statement that it is collaborating with Wanchain to facilitate interoperability between the Cardano mainnet and its sidechains and other Blockchain networks. Wanchain will then become ADA’s EVM-compliant sidechain.
The ADA ecosystem gained the smart contracts feature late last year, but cryptocurrency users complained about the slowness of the platform. In addition, it is known that the number of decentralized applications in the ADA ecosystem is limited.
At the time of this writing, ADA is trading at $0.85, with its 1.46% rise in the last 24 hours.
*Not investment advice.