- IOHK is releasing a Ethereum to Cardano token converter.
- The converter will allow users to turn ERC20 tokens into ADA native special tokens.
- Also, IO intends to use the converter as the first step for the SingularityNET migration.
Input Out (IO), the team behind Cardano, is releasing an Ethereum (ETH) converter. The converter will allow users to move ERC20 tokens from the Ethereum network to Cardano (ADA).
In a recent blog post, IOHK outlined why they chose to convert ERC20 over other tokens. The blog specifies that the ERC20 standard is specific to Ethereum. The standard currently supports over 400,000 contracts including Binance coin, Tether, Uniswap, and others.
In addition, ERC20 fuels Ethereum’s Layer 2 platforms, smart contracts, and DApps. In fact, Ethereum pioneered programmable tokens and as such supports the largest blockchain ecosystem. However, as blockchain and crypto adoption grows Ethereum has started struggling with various scaling problems.
To be specific, some of the problems Ethereum is facing are slow transaction speeds, network congestion, and high fees. As a result of these problems and the ever evolving nature of blockchain, there has been a rise in Ethereum alternatives, including Cardano.
In line with this, IO noted,
By enabling the migration of ERC20 tokens to Cardano, we focus on delivering a value proposition that leverages Cardano’s advantages over Ethereum. In particular, Cardano’s higher capacity for transaction processing and lower fees when compared with Ethereum’s high cost and often congested traffic.
Notably, the converter allows users to move the ERC20 tokens by turning them into a special native token on ADA. The new token will have equal value and functionality as ERC20. Also, the conversion works both ways as it can be reversed. To reverse the conversion users simply have to burn the special token on ADA and proceed to use the original token on ETH as usual.
IO also announced that SingularityNET’s AGI will be used as proof of concept on testnet. This will also serve as the first step for the SingularityNET migration from ETH to ADA.