Input Output, the technology company and code maintainer of Cardano, released Today a new “converter” with which users can bring ERC20 tokens (issued to Ethereum) into the Cardano blockchain.
“Our in-depth ERC20 converter enables Ethereum-based tokens such as AGI (SingularityNet). to run on our proof-of-stake blockchain, ”the company wrote, adding:“ Coming soon from testnet. “
NEW BLOG: Our inbound ERC20 converter allows Ethereum-based tokens like $ AGI @singularity_net to run on our proof-of-stake blockchain.
Coming soon to testnet. Learn more: https: //t.co/a3R3MpaJ83#Cardano $ ADA @Cardano
– Input output (@InputOutputHK) May 17, 2021
Need for action
Ethereum is currently the most widely used blockchain in the world, processing billions of dollars worth of transactions every week and millions of smart contract interactions every day.
However, the current “Proof of Work” consensus design has proven to be limited for the network. Speeds are too slow (15 transactions per second) and fees are too high (they hit over $ 200 for some assets last week).
This has made exchanging and using ERC20 tokens or the assets issued on the Ethereum network according to compatible standards both slow and expensive.
But Cardano wants to change that. “Our ERC20 converter is a tool that issuing organizations and their users can use to migrate ERC20 tokens to Cardano,” wrote IO project manager Francisco Landino on the blog.
He added: “It is designed for token issuers (organizations that want to enable the migration of their tokens to Cardano) and their users (token holders) to use the tool to move their ERC20 tokens onto the Cardano network . “
Changeover to Cardano
The ERC20 tokens would, once converted, run on Cardano’s consensus mechanism for proving the use of Ouroboros, which relies on a network of stakers and validators who maintain the network and process transactions (with far lower fees).
Users can “convert” Ethereum tokens, move them and use these “converted” tokens as a special native token on Cardano that has this same value and works just like an ERC20 token.
To move these tokens back to Ethereum, users can burn them on Cardano and use the original those on the Ethereum network as usual.
Therefore the ERC20 converter is used for SingularityNET for the first time, whereby the converted token is called “AGIX”. With an initial test network, users can evaluate the migration process while working with AGIX tokens in both Cardano and Ethereum-Kovan test networks.
Cardano (ADA) is trading at $ 2 at press time and has a market capitalization of $ 64 billion.
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