On May 17, Cardano (ADA) announced that their new ERC20 converter would allow ethereum (ETH) tokens to run on their proof-of-stake (PoS) blockchain.
Since its launch in 2017, Cardano has provided much faster transactions at lower fees than ETH. The inability to provide smart contracts has held them back, but Charles Hoskinson, the founder of Cardano, recently announced plans to support them.
Most recently, Cardano has been praised for its use of proof-of-stake, which some believe can solve environmental worries associated with proof-of-work.
Cardano will soon be able to support ERC20 token migration to its platform, with the impending of Alonzo hard fork and Plutus smart contracts.
Once this is live, users of supported ethereum tokens will be able to move them from the Ethereum network to Cardano’s. Smart contracts have grown in popularity since Ethereum inception, due to their utility in business transactions. ERC20 tokens address many needs, hence they have been widely adopted by wallets and exchanges.
While the ERC20 standard was created for Ethereum, with over 400,000 contracts based on this token standard, it is becoming more expensive. So, by enabling the migration of ERC20 token to Cardano, they are now able to compete with Ethereum.
More good news for Cardano
These latest developments come on the back of an impressive few weeks for Cardano. Last month, Cardano’s parent company IOHK announced that they had partnered with the Ethiopian government, further expanding into Africa. This news came after they had announced plans to bring sustainable internet connectivity to Tanzania.
The partnership with the Ethiopian Ministry of Education aimed to provide student IDs to almost five million users, with the long-run goal of providing usable data for policymakers and drive personalized teaching.