The network has implemented the IBC protocol that facilitates the exchange of information between different ecosystems.
- More than 110 cryptocurrency networks implement the IBC protocol.
- Developers claim that IBC makes it easy to bring Ethereum projects to Cardano.
The Cardano network has completed implementing the IBC (Inter-blockchain Communication) protocol. The goal is to improve bridging and information exchange with dApps compatible with Cosmos SDK and any Ethereum Virtual Machine (EVM) based application. Networks employing EVM include, among others, Ethereum, BNB Chain, Polygon, and Gnosis. Also included are Ethereum rollups such as zkSync, Scroll, Arbitrum, Optimism, and so on.
The Cardano development team confirmed on June 27 the activation of IBC on the network. Although this protocol is active on more than 110 cryptocurrency networks, as specified on its website, the first stage goal of IBC on Cardano aims at scalability only on Ethereum and Cosmos networks. The announcement highlights that projects based on Cosmos SDK, a system that allows the creation of custom networks, will be compatible with Cardano. Developers can quickly create bridges to transfer tokens from that network to Cardano.
On the other hand, there are dApps or Ethereum-based decentralized applications. IBC allows any dApp running on top of the EVM to bridge information directly into Cardano. Ethereum rollups and sidechains will then be able to connect directly to Cardano. Considering that Cardano is an enterprise-facing network, the goal of IBC’s arrival focuses on facilitating the creation of easily scalable enterprise solutions on major networks such as Ethereum, they mention in the announcement. The IBC protocol is an open-source system that facilitates connecting cryptocurrency networks through secure and decentralized bridging.
Divergence between Cardano’s development and ADA’s price
Cardano is a cryptocurrency network created by Charles Hoskinson, one of the founders of Ethereum. This 2024, Cardano has been quite active in terms of updates. As reported in mid-June, the res is preparing for the Chang Update. This development will increase Cardano’s decentralization by adding a community governance system. Despite that, you can see in the image below provided by TradingView, that the price of the Cardano cryptocurrency (ADA) is far from its high reached this year.
Several investors in this cryptocurrency have expressed their frustration on social networks and internet forums as they do not get the expected returns. If you compare the price to a stronger currency like bitcoin (BTC), the drop in Cardano’s price appears steeper, even if not measured in dollars.
We will have to wait and see if a new generalized bull market in cryptocurrencies manages to boost Cardano or if it follows in the footsteps of so many other altcoins (XRP or IOTA, for example) that never managed to regain their all-time highs after having months or years of great popularity in the past.