Cardano (ADA) is defying the general crypto market trend and it is up by more than 8% today. The price hike is pegged on Cardano’s deployment of Ethereum Virtual Machine (EVM) on its testnet.
At the time of writing, ADA was trading at $0.494; up 8.37% over the past 24 hours.
IOHK, the company behind the Cardano ecosystem, announced the launch of its Ethereum Virtual Machine (EVM) sidechain alpha on its testnet, however, they did not specify if one day the EMV compatibility will be directly installed on its mainnet.
EVM is a decentralized computation engine that enables different smart contracts to interact with each another.
According to the IOHK tweet, the initiative will allow developers to create solidity-based applications on the Cardano network as well as enable other dApps build on Ethereum to be transferred seamlessly to Cardano.
We’re releasing the Ethereum Virtual Machine (EVM) sidechain alpha! (Now on testnet.)
Build your Solidity-based applications on #Cardano – a decentralized, permissionless, sustainable blockchain.
The future is interoperable. pic.twitter.com/sCK9XIuFll
— Input Output (@InputOutputHK) June 12, 2022
The interoperable future of blockchains
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 future built on multiple blockchains.
That’s why we’re releasing the Ethereum Virtual Machine (EVM) sidechain alpha!
We welcome the #Ethereum community of users & devs to freely engage with the best of what #Cardano has to offer. pic.twitter.com/L56ArPZ4bA
— Input Output (@InputOutputHK) June 11, 2022
Besides the latest EVM sidechain deployment, Czuleger regarded this as a great opportunity to add more new users to the Cardano community without adding more complexity to the mainnet.
Quite a great number of growing layer-one blockchains have shown the importance of cross-chain communication. Apart from Cardano, main Ethereum competitors like BSC, Avalanche, and Fantom already 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.
The post also noted that Milkomeda, a sidechain protocol backing up Cardano, will allow EVM that is compatible with smart contracts to be launched on its C1 sidechain that is connected to the Cardano main chain, besides, the sidechain aim is to increase interoperability between Cardano and other blockchains like Solana before the year ends.