Cardano’s Update Will Allow to Create Sidechains

Developers to Create Sidechains on Cardano

Cardano’s new software toolkit will allow developers to deploy custom-built sidechains in an ecosystem with a choice of the consensus mechanism.

Blockchain company Input Output Global (IOG) announced the launch of a new software toolkit on Cardano. It’ll scale the Cardano ecosystem by creating custom-built sidechains. This approach will enable the stability of the core network and secure sidechains through Cardano’s Ouroboros consensus mechanism. 

As a “proof-of-concept,” IOG developers have already deployed an Ethereum Virtual Machine (EVM)-compatible test network based on the new toolkit. After passing the audit, which is expected to be completed by the end of this month, the tool will be publicly available. Anyone can use IOG’s solutions to create Cardano-based sidechains and decentralized apps. Technical documentation can be found on GitHub.

The toolkit will allow sidechain creators to choose any consensus mechanism other than Ouroboros, as well as add the necessary features for the created dApps. The created sidechain will remain part of the Cardano ecosystem and be fully interoperable. 

To clarify, Input Output Global was formerly known as Input Output Hong Kong (IOHK), the primary developer of the Cardano network created by its founder and Ethereum co-founder Charles Hoskinson. Developing the toolkit for sidechains on Cardano was the last step in project development during the “Basho phase” announced in the roadmap. IOG representatives hope to “see a family of Cardano sidechains and partner chains emerging” in the near future.

The cryptocurrency community gave positive feedback to the innovation. Some users were actively discussing on Twitter the possible rise in the price of ADA in the near future, comparing Cardano’s current changes to Ethereum’s similar actions in 2020-2021. According to CoinGecko, ADA rose by 23% in the last seven days. It’s trading at $0.33 as of 11:00 am (GMT+2) on January 13, 2023.

In September 2022, Cardano held a hard fork Vasil, the testing of which provoked negative user feedback and accusations of haste on the part of the developers. However, despite all the difficulties, the Cardano network continues to grow.