The Cardano blockchain protocol and its native currency, ADA that you can trade on Bitcoin system, are having an impressive start to the year, with a number of protocol updates and product launches in the pipeline. One of them is the upcoming Cardano sidechain toolkit and the launch of stablecoin Djed, two of the expected events in the protocol that are expected to bring billions of dollars into its ecosystem this year and beyond.
High level of interoperability and scalability
The Cardano sidechain toolkit is a particularly interesting and highly anticipated innovation that is being proposed by the company Input Output Hong Kong (IOG). According to a recent blog post from IOG, the latter said that it has assembled a team of specialized engineers to use the solid foundation of Cardano and build a toolkit for creating custom sidechains.
IOG said the team built the Ethereum Virtual Machine (EVM) as a Proof of Concept for the sidechain technology and stressed that all documentation of the new innovation will be made accessible to all developers. Cardano is already considered one of the most functional blockchain protocols out there, and the sidechain toolkit is set to make it even more robust in its offerings and capabilities.
With the sidechain it is possible to build other blockchain protocols that will or will not have a consensus mechanism different from that of the parent chain. There will be a bridge that can easily connect with the main chain and, thanks to its design, will be able to offer a high level of interoperability and scalability that will allow it to maintain a more solid competitive advantage over its peers.
The sidechain toolkit will contain the Plutus main chain scripts. As IOG noted, “these scripts run on Cardano's main chain, enable secure transactions between chains and token movement, and leverage minting policies to support the sidechain token.” The sidechain also contains a chain follower and a sidechain module that "interprets data from the main chain and implements the necessary ledger adjustments."
The stablecoin Cardano DJED
One of the main strengths of blockchain protocols is their ability to accommodate related innovations of their competitors and perhaps make accessibility better. The DJED stablecoin has been called the most hyper-collateralized stablecoin and the first algorithmic token in the Cardano ecosystem.
After many months of the community anticipating the release of the token, the team revealed via a weekend Twitter update that it is still on track to launch the stablecoin by the end of this month.
According to media reports, Djed's team has also secured a new partnership with DLT development startup Yepple to bolster the proposed debut.
Cardano is currently considered to be the most robust smart contract protocol out there, and it appears to be outperforming its peers in new updates, deployments, and product debuts. Charles Hoskinson goes on to talk about the protocol's capabilities and its future potential.
In what looks like a welcome turn for the Cardano community, the native ADA currency is up 2,04% in the past 24 hours to $0,3508.