Cardano Unveils new Sidechain toolkit, More Adoption to follow?

Paigambar Mohan Raj
Source: Solodev

IOG (Input Output Global), the firm behind the Cardano (ADA) blockchain network, has unveiled a new toolkit to build custom sidechains. The new toolkit will be released in late January 2023. Along with the announcement, the team also released the technical documentation for the toolkit.

IOG developers demonstrated the toolkit by building a sidechain public testnet compatible with the Ethereum Virtual Machine (EVM). The feat was a “proof of concept.” After the audit, anyone can launch decentralized applications, develop smart contracts, and transfer tokens across testing chains.

Along with additional capabilities tailored to applications, the toolkit will allow sidechain developers to select their consensus algorithm. A bridge connects the main Cardano chain to the sidechain and permits asset transfers between the chains. A consensus process that depends on the main chain’s security determines the finality of blocks.

The firm hopes the tool kit will allow for more adoption of the Cardano (ADA) network. Additionally, IOG has already constructed a more elementary EVM-compatible sidechain to get the sidechain development process started in July 2022

According to the roadmap, the protocol will soon include parallel accounting styles in addition to sidechain enhancements as part of its “Basho phase” to enhance interoperability in the Cardano ecosystem.

Is Cardano faring better than others?

Cardano (ADA) is currently the best-performing crypto in the 7-day charts, among the top 10 projects. At press time, ADA was trading at $0.330074, up by 22.5% in the 7-day charts.

Source: Coingecko

Although the unveiling of the toolkit might not have had a direct hand in the latest rally, the news sure has fans excited. The general crypto markets entered the new year on a positive note. Moreover, a lower-than-expected inflation rate for December has revived sentiment among investors. The global crypto market cap crossed the $900 billion mark once again, reaching $945 billion.

Furthermore, Cardano has done a splendid job of distancing itself from many of the disasters that have occurred within the industry. For the fans and investors, this brings an additional layer of trust into the network.