Cardano and Algorand are now connected via the launch of Milkomeda A1 Rollup that went live on the Algo mainnet, an elated Charles Hoskinson tweeted with his trademark style.
The announcement blog referred to it as a milestone as it was the first rollup from Milkomedia to be deployed outside of the Ethereum ecosystem and the first to go live on Algorand.
A blockchain interoperability service called Milkomeda seeks to give non-EVM blockchains like Cardano and Algorand access to the Ethereum Virtual Machine [EVM]. The base currency of the A1 Rollup is wrapped ALGOs, also known as milkALGOs.
On the other hand, Rollup is frequently thought of as a scaling solution. By periodically posting the rollup’s transaction data onto layer 1 in transaction bundles, it reduces the computational load on the layer 1 chain while still making the transaction data accessible to users of that layer 1 blockchain.
Until the latest feature by Milkomeda, Cardano and Algorand were two distinct blockchains that were previously unable to exchange assets or communicate with one another, which now would change for the better.
In addition to that, Cardano-based DEX Blueshift through its partnership with Milkomeda can facilitate cross-chain swaps to ADA assets directly as well as provide its DEX model to the Algorand ecosystem using Milkomeda’s A1 Rollup.
Cardano Use Cases Boost Through Cross-Chain Interoperability
The future of blockchain and cryptocurrencies have changed with the introduction of cross-chain interoperability. The Milkomeda EVM sidechain was crucial to make Cardano, EVM compatible.
There is value in bridging the gap between Cardano and Ethereum even though their respective ecosystems are different. Increased liquidity, usability, and adoption will result from making these chains compatible.
While most other ecosystems may never catch up on their own, it is undeniable that Ethereum is the primary blockchain for dApp and DeFi development.
Even though Cardano has advantages over Ethereum, it makes sense to adopt the EVM. The Milkomeda C1 project has been under development since last year and was eventually launched later.
Milkmedia C1’s primary goal is to integrate Ethereum dApps into the PoS ecosystem. It offers developers an ecosystem that is more effective and affordable and increases the usability of ADA and other Cardano-based tokens.