Blockchain firm Input Output Global has developed a toolkit for deploying sidechains based on the Cardano network. This was reported on the official website of the company.
According to the developers, the toolkit allows you to create specific sidechains with your own consensus algorithms based on the Plutus and Solidity programming language. The sidechains will communicate with the main Cardano network through cross-chain bridges.
The technical part of the toolkit is still being audited and it is expected that public testing of the technology will begin in January. As part of the testing, developers will be able to launch smart contracts, decentralized applications, or sidechain-based tokens. The release dates for the final version of the sidechain deployment tool have not been disclosed.
In early January, aggregator Dapps on Cardano estimated that there were 16 million transactions registered on the Cardano network. In total, 62 decentralized applications operate on the basis of Cardano, and the number of unique accounts is almost 255,000. Since the beginning of 2023, the total amount of funds placed in DeFi protocols on Cardano has grown by about 7% and is now around $50 million, but still remains 80% below the peaks reached in March 2022.
In August 2022, the Cardano network celebrated an important milestone by moving 3,000 smart contracts overseas. However, this indicator fades against the background of competitors. For example, according to Electric Capital, there are over 44 million smart contracts deployed on the Ethreum network.
A sidechain is a network separate from the main blockchain. Being connected to the main blockchain, the sidechain has its own security and consensus algorithm. The financial scheme of sidechains is built in the following way: first, the assets go to the main blockchain, and later they are converted to the sidechain. And while such operations can reduce the load on the main blockchain, critics believe that using sidechains can be insecure.
Source: CryptoNewsHerald.com
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