Cardano increases its connectivity with Ethereum and Cosmos
The Cardano network has completed the implementation of the IBC (Inter-blockchain Communication) protocol.
The goal is to improve bridging and information exchange with dApps compatible with both the Cosmos SDK and any application based on the Ethereum Virtual Machine (EVM).
Networks that employ EVM include Ethereum, BNB Chain, Polygon, Gnosis, among others. Also included are Ethereum rollups such as zkSync, Scroll, Arbitrum, Optimism, etc.
The Cardano development team confirmed on June 27 the activation of IBC on the network. Although this protocol is activated in more than 110 cryptocurrency networks, as specified on its website, in a first stage IBC’s objective in Cardano is targeting scalability only on the Ethereum and Cosmos networks.
The announcement highlights that projects based on the Cosmos SDK, a system that allows for the creation of custom networks, will be compatible with Cardano. This means that they can quickly create bridges to transfer tokens from that network to Cardano.
On the other hand, there are dApps or decentralized applications based on Ethereum. IBC allows any dApp running on top of the EVM to create information bridges directly into Cardano. Ethereum rollups and sidechains They will then be able to connect directly to Cardano.
Taking into account that Cardano is a network with an enterprise perspective, the objective of the arrival of IBC focuses on facilitating the creation of easily scalable enterprise solutions on important networks such as Ethereum, as mentioned in the announcement.
The IBC protocol is an open source system that facilitates connection between networks cryptocurrencies through the creation of bridges in a secure and decentralized way.
There is a divergence between Cardano development and ADA price
Cardano is a cryptocurrency network created by Charles Hoskinson, one of the founders of Ethereum.
In 2024, Cardano has been quite active in terms of updates. As CriptoNoticias reported in mid-June, the res is preparing for the Chang Update. This development will increase Cardano’s decentralization by adding a community governance system.
Despite that, and as seen in the image below, provided by TradingView, The price of the Cardano (ADA) cryptocurrency is far from its all-time high reached in 2021.
Several investors in this cryptocurrency have expressed their frustration on social media and internet forums, as they are not getting the expected returns.
Even if instead of looking at the price of Cardano in dollars, it is measured in a stronger currency, such as Bitcoin (BTC), the fall looks much steeper.
It remains to be seen whether a new generalised cryptocurrency bull market will be able to boost Cardano. or if it follows in the footsteps of so many other altcoins (XRP or IOTA, for example) that never managed to recover their historical highs after having had months or years of great popularity in the past.
