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Cardano Teams Up with Polkadot to Test Partner Chains

Cardano Teams Up with Polkadot to Test Partner Chains

Cardano will leverage Substrate, the foundation of Polkadot’s SDK, to develop its latest “partner chain” framework. 

  • Cardano and Polkadot make exciting partnership announcements for the blockchain space.
  • Cardano will leverage Polkadot’s Substrate to test its latest “partner chain” framework.
  • Partner chains represent a new approach to interoperability and blockchain networks.

Cardano Teams Up with Polkadot to Test Partner Chains. Blockchains Cardano and Polkadot announced a partnership that could represent a significant breakthrough in blockchain interoperability and scalability. The team at Polkadot, a Layer 1 blockchain, announced the partnership in a tweet Monday. They detailed that Cardano will leverage Substrate, the foundation of Polkadot’s SDK, to develop its “partner chain” project. This utility, they say, will demonstrate Substrate’s ability to expand across Web3. It’ll also showcase its ease of use for other chains and ecosystems.

Substrate is the fundamental Blockchain software development kit for creating parachutes within the Polkadot network. It enables the creation of independent blockchains that operate alongside Polkadot. The partnership is part of Cardano’s latest innovation: partner chains. It is a framework with which the project seeks to solve critical problems with modular blockchain solutions, such as interoperability, security, tokenomics, and blockchain.

Substrate’s open-source code is highly complementary to the Cardano stack. It aligns with our shared vision of a world of interoperable blockchains,” said IOG, developer of Cardano, in a blog post.

Cardano teams up with Polkadot to explore “partner blockchains.”

IOG founder and CEO Charles Hoskinson described the new framework that will offer new ways for developers and validators to use Cardano’s core strengths to build optimized partner chains. He announced this during the Cardano Summit 2023 last week. “Partner chains will revolutionize how new blockchains are launched and operated by combining modular blockchain technology with Cardano’s proven security, liquidity, and reliability. Partner chains will realize these benefits without relying on any network or technology stack,” details an IOG blog post.

Cardano is designed with the Cardano Settlement Layer (CSL) separate from the Cardano Compute Layer (CCL), with the former serving as the ultimate inter-chain settlement layer. Under this model, networks can build their computational layers using modular components and a framework while relying on CSL for interchain agreements. By merging modular blockchain technology with Cardano’s strengths in security, liquidity, and reliability, the associated chains aim to revolutionize the development and operation of new blockchains.

With the associated chains, networks will have the power to build their computing layer by leveraging a modular framework and existing components, but still leveraging the CSL for cross-chain settlement,” the development team added. Midnight, a newly unveiled IOG data protection-focused blockchain, will be the first partner chain to implement this new framework.

Cardano’s Midnight takes inspiration from Substrate.

This collaboration between Cardano and Polkadot is promising for both platforms. It may lead to the launch of additional blockchains, ushering in a new era in the cryptocurrency sector. Both projects have worked independently to achieve new developments and advance their ecosystems. While Polkadot is working on a new concept called collective lending, the Cardano community is preparing for a possible launch of the Midnight protocol, a privacy-centric sidechain focusing on decentralized data protection.

Devs built Midnight on Cardano’s Layer 1 blockchain, which provides a foundation for secure, scalable, and decentralized operations. In a previous interview, Hoskinson explained that several projects inspired Midnight, including Hyperledger Fabric, Cosmos, and Gavin Wood’s Parity Substrate. This inspiration drives the creation of a dual-token model and a multi-resource consensus framework. These tools enable the integration of a specially designed blockchain into Cardano through a collaborative partnership. 

Hoskinson and Wood, the minds behind Cardano and Polkadot, respectively, have in common that they collaborated in Ethereum’s early days. They were co-founding partners alongside Vitalik Buterin and other developers. Cardano’s and Polkadot’s cryptocurrencies have seen a rise amid announcements and in line with a broader uptrend in the crypto market. Cardano’s ADA is trading at $0.367 by press time, up 6% in the last 24 hours. Polkadot’s DOT has gained 10% weekly and is trading at $4.9.

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