Cardano’s blockchain decentralized economy is approaching reality, and the token migration bridge will soon enter the testing phase.
According to Francisco Landino, Project Manager for Input Output Hong Kong, or IOHK – the R&D unit in charge of Cardano – the platform migration tool is getting closer to publishing the ERC-20 testnet.
In a blog post published on Monday, Landino said the ERC-20 switching tool will allow Ethereum-based tokens to be ported to the Cardano chain.
The planned ERC-20 switch bridge will follow the highly anticipated Cardano Alonzo hard fork, which is said to provide network smart contract functionality.
Arguing the need to use the ERC-20 conversion tool, Landino wrote:
“Once deployed, users of supported Ethereum tokens will be able to migrate them from the busy Ethereum network and take advantage of Cardano’s transaction capacity and lower fees, while providing more security, lower costs, and interoperability.”
As part of the announcement, the head of IOHK also stated that the ERC-20 switching tool was a significant part of the effort to leverage Cardano’s value proposition for Ethereum in terms of parameters such as scalability and transaction costs.
With just a few clicks, crypto projects will be able to transfer their native codes to the Cardano series via a conversion tool. The Cardano peer will have the same value as an Ethereum-based “currency”, and the built-in bidirectional conversion capability means the transaction can be canceled at a later date.
Plans to roll out transformer test networks are already underway, and Landino announced that AGI SingularityNET will be the first ERC-20 token to be pushed to the Cardano chain.
Looking to the future, the IOHK executive said the Cardano team is considering converting the ERC-20 into a blockchain bridge.
According to DappRadar, the total adjusted value of Ethereum’s decentralized financial market is over $ 68.5 billion. Amidst the talk of the two-tier solutions that will be the next frontier of the ether-based DeFi market, it also appears that large altcoin chains like Cardano are the physical home of the new DeFi arena.