Input Output Hong Kong (IOHK), Cardano blockchain developer, has announced the successful launch of a testnet that will allow Ethereum-based tokens to transfer to the Cardano blockchain.
The converter is a significant step in their shared journey towards a much deeper collaboration with the SingularityNET community, according to IOHK. It is initially partnering with decentralised artificial intelligence network SingularityNET (AGIX) in the initiative.
“In this initial testnet version, users can move SingularityNET’s AGIX tokens to Cardano and back to Ethereum via the permissioned bridge.
This marks a significant step forward in driving interoperability between blockchains to establish a functional environment for decentralized finance (DeFi).”
The testnet is a fully functional prototype that paves the way for the mainnet, which is the finished product. According to SingularityNET CEO and principal scientist Dr. Ben Goertzel, the mainnet converter will be launched “soon after” the testnet.
The testnet converter, according to IOHK, converts Ethereum’s ERC-20 tokens into native tokens on the Cardano blockchain. On the Ethereum blockchain, an ERC-20 token is a standard for creating and issuing smart contracts.
According to the Cardano creator, the sixth-largest blockchain in terms of market capitalization is also working on linking to other decentralised protocols.
“We are currently building out and collaborating on multiple bridges to connect Cardano to other blockchains, and this first converter is a vital artery in this system.
The more these connections grow, the higher the network effect to boost the flow of liquidity within the Cardano ecosystem.”
Interoperability is critical for growing blockchain adoption and growth across the board. Along with their open-source strategy, making blockchain solutions available to everyone, regardless of protocol, has always been one of our Cardano priorities. However, in order to meet the objectives of the crypto community, transaction processing speed, security features, and scalability are essential.
According to IOHK, several bridges are now being built and collaborated on to connect Cardano to other blockchains, and this first converter is a critical artery in the system. The bigger the network impact to improve the flow of liquidity inside the Cardano ecosystem, the more these linkages grow.