The Cardano blockchain is about to shock the industry again as its developers prepare for the upcoming launch of the testnet that’s expected to further upgrade the network to better handle smart contracts. While that’s in the pipeline, the network is now availing an innovative tool, called the ERC-20 converter, to help projects ease their migration from other blockchains to the Cardano blockchain.
The ERC-20 converter allows for two-way conversion compatibility, making it possible for the transfer to be reversed if the users decide to do so. The Cardano Foundation tweeted about this new development, coupled with a video discussion of a top exec explaining what’s possible with the new system.
Many De-Fi Projects Expected To Jump Ship
For some time now, the Cardano network has fought to market itself as the better and more reliable blockchain network against strong competitors like Ethereum. The Ethereum blockchain has long been known as the home of DeFi projects.
Now, with the introduction of Cardano’s Alonzo upgrade that allows for smart contracts to run on the blockchain, Ethereum may soon be on the waning end as developers could start migrating to the Cardano network. In a blog post, the project manager at IOHK, Francisco Landino, said that the ERC-20 converter is designed to help willing developers migrate their projects and tokens to the Cardano network.
For one, Cardano offers a very cost-effective network due to its very low transaction fees as well as great execution speed. The network is also designed for smooth scalability, a problem that has dogged most of the other blockchains for years. These positives could very well contribute to the network’s success against the competition.
Testnet To Showcase Use Cases
Cardano is expected to launch a testnet for the new system soon. In a fireside chat with the Cardano Foundation, Fintech evangelist Frederik Gregaard set out to explain that the testnet will give the users an opportunity to test and understand the various use cases that come with the new Cardano functionality.
It’s yet to be understood just how much impact this new development could have on ADA, Cardano’s native token. Frederik says that the network aims to have transaction fees calculated in ADA, something that could amplify the positive effect on ADA.
As of publication, ADA sits on position 5 on the crypto rankings and trades at $1.78, with a market valuation totaling $56.9 billion and posting a 7-day gain of 15.6%.