Sun 21 August 2022 ▪ 7:00 am ▪
min read – by
A bridge between Cardano and another ecosystem has been expected for a while. It finally seems that the choice has fallen on Cosmos. This new bridge between Cosmos and Cardano is supposed to boost adoption of the two cryptocurrencies, but it’s not to everyone’s taste. Find out in this article all the details of this connection between the Cosmos crypto and the Cardano blockchain.
What are the challenges of the Cosmos-Cardano connection?
The development of cryptocurrencies logically leads to changes. To stay competitive by offering better services, updates become a necessity. It is for this reason that we sometimes see connections between blockchains as is the case now between Cosmos and Cardano. Indeed, a tweet from Cardano Daily revealed that there will soon be a bridge between Cardano and Cosmos. “Coincidentally, I said in a tweet that Cardano needed a bridge to another ecosystem and Cosmos – a Sifchain-backed Cardano bridge – was released right afterCardano Daily tweeted.
Logically, this collaboration is welcome, because the two have many points in common. On the one hand, the same ambitions in the field of research and development, accessibility and community applications. On the other hand, the aim is to improve interoperability between the two networks.
With the EVM-compatible layer (Ethereum virtual machine), this cross-chain bridge technology will enable the groundbreaking bridge implementation between Cosmos and Cardano. Both projects aim to create new cross-channel opportunities to increase their appeal. The Cosmos-Cardano Bridge is currently under development. It will be powered by Peggy 2.0 and Sifchaina DEX omni chain on Cosmos that allows exchange, staking and bridging of Ethereum and Cosmos.
What brings Cosmos to Cardano?
The Cosmos team defines its cryptocurrency as an “Internet of Blockchains”. The Peggy 2.0 bridge it brings to this alliance will provide unprecedented access to decentralized governance protocols for growth and new liquidity. Cardano should therefore see the number of users and transactions are increasing rapidly.
Cosmos is built on interoperability, coupled with Cardano’s EVM-compatible layers. It gives developers and users access to an ecosystem of chains, DApps, assets and utilities. Everything in an independent and very decentralized way. In addition, Cosmos Cardano brings an essential plus: safety. With hacking nomad bridge, safety is now a priority for both projects.
The Cosmos ecosystem records some impressive numbers, including: $4.2 billion in staked crypto assets. We can also mention his $200 million in cross-chain transactions per month. And finally it has a 40 channels and thousands of DApps. After announcing the future bridge between Cardano and Cosmos, Cexplor announced a 95% jump in the Cardano network. Despite its impressive potential, some members of the Cardano community remain skeptical.
For some, the timing isn’t right. They think the two blockchains are too recent to think about interoperability. The priority should be on security, governance and scalability. Bridges like the ones Cosmos and Cardano want to build are prime targets for hackers. They will not hesitate to try to infiltrate wallets and rob users. We still have the Ronin hack in mind. As a result, hackers have been able to take more than $550 million in ether and USDC.
Get a summary of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss out on the essential Coinstand!
Cedrick Aimé GUELANG OFALABEN
PhD student of financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Naturally, thanks to his articles, he joins the daily blockchain revolution for a better democratization of DeFi.