Cardano Ecosystem Expected to Thrive with Custom-Built Sidechains
Input Output Global (IOG), a blockchain engineering firm founded by Charles Hoskinson, announced the release of a software toolkit.
IOG developers have already utilized the toolkit to build an EVM-compatible sidechain public testnet as a PoC.
Moreover, the toolkit will assist in developing smart contracts and moving tokens across multiple testing chains.
Later this month, the Cardano ecosystem team announced the release of a software toolkit. The toolkit will allow developers to deploy custom-built Cardano sidechains with the goal of improving the ecosystem.
Input Output Global (IOG), a blockchain engineering firm founded by Charles Hoskinson, made the announcement on January 12. The announcement includes the full technical documentation for the sidechain tools.
IOG developers have already utilized the toolkit to build an EVM-compatible sidechain public testnet as a PoC. Following the conclusion of the audit, anyone will be able to deploy decentralized applications. This will also assist in developing smart contracts and moving tokens across multiple testing chains.
In addition to other application-specific features, the toolkit will allow sidechain authors to choose their own consensus mechanism.
A sidechain is a blockchain that operates independently of the parent blockchain, also known as the mainnet. Sidechains are frequently used to increase the scalability of the mainnet, which frequently values transparency and security.
IOG believes that the creation of the sidechain would pave the path for the "mass adoption" of the Cardano ecosystem in the near future.
Cardano community pumped
The announcement has fueled the Cardano community. One community member believes that Cardano will have a price surge similar to that of Ethereum in 2020-2021. At that time, several layer-2 sidechains and utility tokens were released.
Another Cardano fan called the toolkit deployment a "great move" that will "expand the usage of Sidechains for Cardano" in the coming months.
In addition to sidechain advances, the protocol's Basho phase will soon include parallel accounting styles. This will improve Cardano ecosystem accessibility.
This isn't IOG's first integration of a sidechain solution on Cardano. In July 2022, IOG created a more basic EVM-compatible sidechain to kickstart sidechain development.
Furthermore, at the time of writing, the price of Cardano (ADA) was trading at $0.3317, up 22% in the last seven days.
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