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Cardano set to attract billion-$-companies and investors with custom built sidechains and toolkit

  • Sidechain creators can use the toolkit to customize their consensus mechanism and other custom features without losing the security of the main chain.
  • Following the news, one excited member hopes that the price of the network’s native token would experience a huge surge similar to the surge in eth’s price between 2020 and 2021.

Later this month, the Input-Output Global (IOG) team, the developers behind the Cardano ecosystem, will launch a software toolkit. Using this toolkit, developers can create personalized sidechains on the Cardano network to enhance the ecosystem. While announcing the news on Thursday via Twitter, the IOG team added the official technical document for this toolkit.

⛓️ The #Cardano sidechain toolkit was previewed at #IOScotFest, and we’re happy to share the first iteration is out now.

Here’s the lowdown on this exciting new project!

— Input Output (@InputOutputHK) January 12, 2023

Boosting the mainnet

Meanwhile, the IOG developers revealed they had used the toolkit to create a proof-of-concept using an EVM-compatible sidechain public testnet. They added that developers could transfer tokens among multiple test chains and launch dApps and smart contracts once the audit is complete. According to the announcement, one other app-specific feature of the toolkit is that sidechain creators can use it to determine the consensus mechanism of their choice.

A sidechain is a separate blockchain that works alongside the mainnet, also known as the parent blockchain. While the parent blockchain usually focuses on security and decentralization, sidechains improve the parent blockchain by adding scalability.

IOG believes this new development will lead to mass adoption of the Cardano network, including launching several Cardano sidechains and partner chains over the long term. Meanwhile, Cardano founder, Charles Hoskinson, would love Solana to be one of Cardano’s “partner chains.” Hoskinson revealed this much during an ask me anything session last month.

According to him, the two blockchains would enjoy some mutual benefits. For instance, Solana can leverage Cardano’s security and infrastructure, while Cardano could benefit from using Solana’s network speed.

Excitements in the Cardano ecosystem

Members of the Cardano community have expressed their delight at the news. One excited member hopes the network’s native token will experience a huge price surge similar to the rise in ETH’s price between 2020 and 2021. During that period, there were several launches of utility tokens and layer-2 sidechains.

2023 is the year of #Cardano sidechains

– Midnight privacy sidechain
– Sidechains Toolkit EVM compatible
– Milkomeda, first Cardano sidechain
– …more to come

Do you remember what happened when people started to build sidechains/tokens on Ethereum?
Take that and make it x10.

Follow us for the latest crypto news!

— Cardano Hieronymus (@CardanoHumpback) January 12, 2023

Another excited member opined that the toolkit launch and deployment would expand the use of Cardano sidechains in the coming months.

Great move by @InputOutputHK I believe this help spread the usage of Sidechains for Cardano which is a good strategy if it evolves to use mithril / state proofs

As a core contributor to @Milkomeda_com we will continue to lead 🫡 and hopefully support others to join

— nicoarq (@NicoArqueros) January 12, 2023

Meanwhile, the IOG team remarked that the toolkit isn’t a perfect solution, adding that it would work on areas which require improvement. Such areas include the toolkit’s security model, bridge experience and SPO rewards mechanism. However, the team noted that it would make these additions, feedback and collaborations with the community.

Based on the network’s roadmap, Cardano will launch parallel accounting styles to boost sidechains. This launch will be included in the Basho update to facilitate interoperability on the Cardano network. This toolkit is the second sidechain solution that IOG has developed for Cardano.

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The first was the basic Ethereum virtual machine sidechain, launched in July 2022. There have been several improvements on the Cardano network over the last few months. Last September, the protocol underwent the Vasil upgrade to enable dApps to run at cheaper costs and boost smart contract deployment.

At the time of writing, Cardano’s native token trades at $0.3324 and is up 23.4 percent in the last seven days.

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