Cardano Rolls Out Testnet Enabling Transfer of Ethereum Tokens to Its Network
Input Output Hong Kong (IOHK), the creator of Cardano (ADA), has announced the successful deployment of a test network (testnet) to enable the migration of Ethereum-based tokens to the Cardano blockchain. According to IOHK, the endeavor will begin with a partnership with decentralized artificial intelligence network SingularityNET (AGIX).
“Through the permissioned bridge, users may transfer SingularityNET’s AGIX tokens to Cardano and back to Ethereum in this first testnet version. This is a huge step forward in terms of promoting blockchain interoperability and establishing a workable ecosystem for decentralized finance (DeFi).”
The testnet is a fully functional prototype that lays the groundwork for the mainnet, which is the finished product. According to SingularityNET CEO and principal scientist Dr. Ben Goertzel, the mainnet converter would be deployed “shortly after” the testnet.
According to IOHK, the testnet converter converts Ethereum’s ERC-20 tokens to Cardano native tokens. An ERC-20 token is a kind of token that enables the creation and distribution of smart contracts on the Ethereum network. Additionally, according to the Cardano creator, the sixth-largest blockchain by market capitalization is working on linking to other decentralized protocols.
“We are actively developing and cooperating on a number of bridges that will link Cardano to other blockchains, and this initial converter represents a critical artery in this system. The more links there are, the stronger the network effect will be in terms of increasing the flow of liquidity inside the Cardano ecosystem.”