Next week, in the Cardano testnet, an ERC-20 token converter will be deployed, which should serve as a “bridge” between the blockchain platform and the Ethereum network. This was disclosed by IOHK project manager Francesco Landino.
According to him, the converter will allow users to move ERC-20 tokens issued on Ethereum to Cardano. They will gain access to the transaction capabilities of the blockchain platform and lower fees. Landino noted its relevance for DeFi applications, which may want to deploy their services on the new network.
The ERC-20 token converter integration was first announced by the developers in May. The tool is needed by the project to implement promised capabilities in the decentralized finance space.
“The Alonzo hard fork and Plutus smart contracts are already on the way. After deployment, users will be able to transfer supported ERC-20 tokens from the congested Ethereum network,” the statement said.
According to the developers, token transfer will take a few clicks. During migration on the Cardano network, special native tokens will be issued that have the same value and operate in a manner similar to the standard.
A two-way conversion is provided. If a user decides to return funds to the original network, the native tokens on the Cardano platform will be burned.
On August 13, IOHK announced that the activation of Alonzo is scheduled for September 12, 2021. On this backdrop Cardano price (ADA) hit a new high above $2.9. This allowed the cryptocurrency to enter the top-3 by market capitalization, according to CoinGecko.
As of this writing, ADA is trading near $2.6.
The rise in cryptocurrency prices also coincided with a period of high IOHK activity. According to data from Santiment, from May to August the Cardano team consistently contributed more changes to the GitHub repository than Ethereum developers.
IOHK chief Charles Hoskinson said that many projects in the digital asset industry suffered from embracing a ‘first-mover’ strategy, and Cardano does not want to repeat their mistakes.
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