One of the most common problems in the cryptocurrency industry is the inability to efficiently convert tokens to other types. It’s nice and good when projects like Ethereum ( ETH ) or Solana (SOL) offer great products and services, but it’s just as important to be able to provide functionality that allows users to seamlessly transfer tokens at little or zero cost.
With this in mind, Cardano ( ADA ) has previously talked about the introduction of the new ERC-20 token creator. With the help of IOG, the main developer of Cardano, the converter has been in the works for a long time and its implementation will allow the network to successfully support the migration of various ERC-20 tokens to the Cardano blockchain from Etherea. Additionally, Cardax, a leading DEX , is working to position itself to take advantage of the converter and all the benefits it can bring.
Why is the converter important?
Blockchain interoperability is essential to increasing acceptance and growth in all areas. Along with Cardano’s open source strategy, this has always been one of its top priorities, namely making blockchain solutions accessible to everyone, regardless of protocol selection. However, attention must be paid to scalability, transaction processing speed, available fees, and security features, all of which are key to meeting the demands of a rapidly growing cryptocurrency , market, and community.
Cardano therefore builds and collaborates on a series of bridges to connect the network to various other blockchains, and this initial converter is a critical aspect of the overall framework of the system. In a nutshell, the higher the number of these links, the stronger the network effect to successfully increase the flow of liquidity in the relevant Cardana ecosystem.
The converter basically works by “translating” the ERC-20 token into any given native Cardano token, keeping the same functionality and value, which can then be placed in Yoroi or Daedalus wallets and used for payments and other transactions. . If required, the tokens can also be converted back to the ERC-20 format using the built-in conversion mechanism. Also, the converter does not require any technical knowledge or coding skills from the users as they can just go to the tool using a URL and then create a new account or set up an existing Metamask account instead.
How does Cardax fit into all of this?
Cardax is a DEX where users can exchange their ADA for any native Cardano token. This is important because Cardano allows it to support multiple assets thanks to these native tokens, which allow users to generate custom and uniquely specified tokens, as well as transact directly with them through the Cardano blockchain .
Therefore, Cardano’s ERC-20 converter will help millions of people to learn about the many DeFi protocols that are being developed on its network. Cardax, which plans to launch at the end of the first quarter of 2022, is probably one of the best placed candidates and decentralized finance initiatives to successfully capitalize on the latest liquidity inflows likely to result from the conversion of ERC-20 token genrator . on native Cardano tokens. At its core, Cardax aims to be a major competitor to the Cardan ecosystem, and its easy-to-use interface, scalability, association with MLabs, Tweag, IOG, and Well-Typed, along with low fees, all contribute to helping the Charles Project. Hoskinson. be successful in the long term.
The possibilities of the Cardano blockchain continue to expand with the activation of its first ERC-20 converter , with which users will be able to migrate Ethereum tokens to its network according.
Blockchain development has increased since the launch of the smart contract capability. The network has seen the first signs of DeFi as developers begin testing their DApps with the help of the foundation. This has inspired even more development with the community eagerly awaiting the day they can finally access DeFi services on Cardano.
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