With less than 2 weeks from the activation of smart contracts on the Cardano blockchain, numerous tools are being activated on the testnet, including the ERC20 Converter.
During the latest Cardano360 update, Francisco Landino, from the Arch Case commercial team, explained what the ERC20 Converter is and gave an update on the project:
“The ERC20 Converter is a bridge to connect Ethereum’s blockchain to Cardano, so users will be able to migrate their tokens from Ethereum to Cardano, people will be able to move liquidity or to move their utility tokens to use the applications that are migrating from Ethereum to Cardano. These applications are mainly looking for a cheaper and faster blockchain with also a higher security on how the smart contracts are formally verified because of the improved capacities of Cardano. […] This is a two-way bridge, so users can migrate from Ethereum to Cardano and from Cardano to Ethereum”.
Several months ago we published a piece about the ongoing migration from Ethereum to Cardano, mentioning a few projects. One of these is SingularityNET (AGIX) which will be the first token testing out this tool. Landino continues:
“[The community] will see everything next week on the testnets and users will be able to test how they can migrate their AGIX tokens from Ethereum to Cardano and also going back from Cardano to Ethereum”.
Is the Cardano ERC20 Converter a threat to Ethereum?
Cardano is currently the most capitalized Proof of Stake (PoS) blockchain, and is aiming to be a faster, cheaper and more secure alternative to Ethereum. What remains to be seen now is whether Ethereum will manage to upgrade from Proof of Work (PoW) to PoS and keep its network effect or whether Cardano will be attractive enough for projects to migrate to the blockchain founded by Charles Hoskinson.
It is important to note that the bridge is two-way, which means that probably many projects will be using both blockchains. Charles Hoskinson has often reiterated that interoperability is very important.
Another guest on the Cardano360 show was Marcello Mari, CEO of SingularityDAO (SDAO), another project planning to use the Cardano blockchain.
SingularityDAO’s mission is to innovate the DeFi space by bringing sophisticated artificial intelligence by providing an ETF-style basket of tokens called Dynasets to their community and to anyone who wants to get exposure to the crypto economy, with the AI automatically rebalancing these tokens.
The first iteration of these Dynasets is using the Ethereum blockchain, but Marcello stated they are very much looking forward to Cardano becoming mature enough so that the second interaction of Dynasets can be available in the Cardano ecosystem as well.
It seems that the market is appreciating that these projects are getting ready to deploy on the Cardano blockchain. AGIX and SDAO are up 34.7% and 84.8% respectively in the last 7 days according to Coingecko data.