Cardano (ADA) developer Input Output Hong Kong (IOHK) is announcing the successful launch of a test network (testnet) to allow Ethereum-based tokens to migrate to the Cardano blockchain.
IOHK says that it is initially partnering with decentralized artificial intelligence network SingularityNET (AGIX) in the initiative.
“In this initial testnet version, users can move SingularityNET’s AGIX tokens to Cardano and back to Ethereum via the permissioned bridge.
This marks a significant step forward in driving interoperability between blockchains to establish a functional environment for decentralized finance (DeFi).”
The testnet is a working prototype and paves the way for the mainnet, which is the ready product. The mainnet converter will be launched “soon after” the testnet, per SingularityNET CEO and chief scientist Dr. Ben Goertzel.
According to IOHK, the testnet converter transforms Ethereum’s ERC-20 tokens into native tokens on the Cardano blockchain. An ERC-20 token is a standard used to create and issue smart contracts on the Ethereum blockchain.
The Cardano developer also says that the sixth-largest blockchain by market cap is also working on connecting to other decentralized protocols.
“We are currently building out and collaborating on multiple bridges to connect Cardano to other blockchains, and this first converter is a vital artery in this system.
The more these connections grow, the higher the network effect to boost the flow of liquidity within the Cardano ecosystem.”
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