Cardano (ADA), is rising above the general crypto market trend. It is currently up by more that 8%. The price hike is pegged on Cardano’s deployment of Ethereum Virtual Machine (EVM) on its testnet.
ADA traded at $0.494 as of the writing; an 8.37% increase over the previous 24 hours.
IOHK, the company behind Cardano, announced the launch on its testnet of the Ethereum Virtual Machine (EVM), however they didn’t say if it would soon be available on its mainnet.
EVM, a decentralized computation engine, allows different smart contracts interconnect with each other.
According to the IOHK tweet the initiative will allow developers build solidity-based applications on Cardano and also enable other dApps that are built on Ethereum to be easily transferred to Cardano.
We’re releasing the Ethereum Virtual Machine (EVM) sidechain alpha! (Now available on testnet.
Create your Solidity-based Applications on #Cardano – a decentralized, permissionless, sustainable blockchain.
Future is interoperable pic.twitter.com/sCK9XIuFll
— Input Output (@InputOutputHK) June 12, 2022
Blockchains are interoperable in the future
Input-Output Global (IOG) senior content editor, Eric Czuleger, claimed that the community believes in “an interoperable future” where different blockchains will be able to communicate with each other.
We believe in an interoperable world built on multiple blockchains.
That’s why we’re releasing the Ethereum Virtual Machine (EVM) sidechain alpha!
We are happy to receive your #EthereumCommunity of developers & users to freely engage with what’s best #Cardanohas to offer. pic.twitter.com/L56ArPZ4bA
— Input Output (@InputOutputHK) June 11, 2022
Czuleger saw this as an opportunity to increase the Cardano community’s user base without increasing the complexity of the mainnet.
A lot of layer-one blockchains are growing and have demonstrated the importance of cross-chain communications. Avalanche and Fantom, the main Ethereum competitors, have EVM-compatible networks.
In a blog post titled “Interoperability is key to blockchain growth” that was published weeks before Cardano launched the EVM sidechain, IGO noted that the sidechain will also allow developers to build compatible ERC-20 tokens for users to enjoy faster settlement times and lower fees.
It was also mentioned that Milkomeda (a sidechain protocol supporting Cardano) will allow EVM compatible with smart contracts on its C1 sidechain. This sidechain is linked to the Cardano mainchain. The sidechain goal is to improve interoperability between Cardano as well as other blockchains such Solana before year’s end.