Input Output Global (IOG), the software company behind the development of Cardano (ADA), and Nervos, a Chinese public blockchain platform, announced today that they are launching a cross-chain bridge to connect the two networks.
The purpose of the bridge between chains
The bridge will give users the ability to initiate the transaction of ADA and CKB digital tokens between the Cardano and Nervos blockchains and create their own tokens.
According to him report, the bridge, when completed, will be Cardano's first cross-chain bridge and Nervos's second after going through the same process with Ethereum.
A press release on the development says that:
“The bridge will mark an important milestone for Nervos as it builds solutions to support multi-chain applications by connecting with other chains, including Cardano, who shares Nervos's vision of a truly interoperable blockchain ecosystem and provides a faster system. , cheaper chain alternative, as Ethereum gas fees continue to be a problem for users ”.
The challenge is riding on the Blockchain by Ethereum
Although most decentralized finance protocols (DeFi) and stablecoins are based on the Ethereum network, new blockchains like Cardano, Polkadot, and others are challenging Ethereum's dominance in the industry quite a bit. This is only happening due to issues with scalability and high transaction fees that plague the Ethereum network.
In a few months, Cardano will implement smart contracts functionality, which is expected to make the challenge more intense on Ethereum.
In reaction to the new development, IOG CTO Romain Pellerin said:
“We believe that blockchain technology will only achieve widespread acceptance when end users are not locked into a blockchain or standard, but can seamlessly access value and utility regardless of the blockchain they are using. As a result, bridges like this are an absolute must to ensure that users have a seamless experience. "
Cardano (ADA) on the market
According to CoinMarketCap, Cardano (ADA) currently occupies the fifth position in the market, maintaining its stability above the resistance level of $ 1.70. At press time, ADA is trading at $ 1.83, trending 2.52% up over the past 24 hours.