The company behind the Cardano ecosystem – Input-Output – announced the launch of its Ethereum Virtual Machine (EVM) sidechain alpha on the testnet. The layer-one blockchain didn’t specify if this EVM compatibility would be deployed to its mainnet in one day.
Interoperability is the Future
IOHK tweeted developers will be able to develop solidity-based applications on Cardano, which means that dApps that were developed on Ethereum can seamlessly transfer to Cardano.
We’re releasing the Ethereum Virtual Machine (EVM) sidechain alpha! (Now available on testnet.
Get your Solidity-based apps built on #Cardano – a decentralized, permissionless, sustainable blockchain.
The future is interoperable. pic.twitter.com/sCK9XIuFll
— Input Output (@InputOutputHK) June 12, 2022
Eric Czuleger is Senior Content Editor at Input Output Global. said the community believes in “an interoperable future” that allows different blockchains to communicate with each other. In regards to the latest deployment of the EVM sidechain, Czuleger viewed it as an opportunity to onboard new users outside of the Cardano community while not “adding additional complexity to the mainnet.”
The issue of cross-chains communication has become more important due to the increasing number of layer-one Blockchains. EVM is a decentralized computing engine that allows smart contract from different sources to interact one another. EVM is compatible with major Ethereum competitors, Fantom, Avalanche and BSC.
In a blog post titled “Interoperability is key to blockchain growth,” published weeks before the launch, IGO stated that the sidechain will also enable devs to create ERC-20-compatible tokens as users can enjoy the benefits of lower fees and faster settlement times.
According to the post, Milkomeda – a sidechain protocol supporting Cardano – also allows EVM-compatible smart contracts to be deployed on its C1 sidechain connected to the Cardano main chain. The sidechain also aims to increase interoperability between Cardano, Solana and other blockchains by the end the year.
Criticism of Ethereum
Cardano’s founder Charles Hoskinson is known for his views on blockchain interoperability. Despite his recent embrace of the EVM deployment on Cardaono’s sidechain, he previously criticized Ethereum for its sole focus on smart contracts. Hoskinson claimed that Cardano can achieve that with governance, compliance, and the possibility of using metadata and automated regulation.
Moreover, he called Cardano a collection of protocols that could “offer economic support to billions of people, specifically in poor regions.” Finally, he claimed the blockchain’s all-anticipated upgrade to Ethereum 2.0 could cause the demise of the whole network.