Sun 21 August 2022 ▪ 7:00 ▪
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A bridge between Cardano and another ecosystem has been expected for some time. Finally, it seems that the choice has fallen on Kosmos. This new bridge between Cosmos and Cardano should boost the adoption of the two cryptocurrencies, but it’s not to everyone’s taste. Discover in this article all the details of this connection between the Cosmos cryptocurrency 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 imperative. For this reason, we sometimes see connections between blockchains, as is currently the case between Cosmos and Cardano. Indeed, a tweet from Cardano Daily revealed that there will soon be a bridge between Cardano and Cosmos. “Coincidentally, I mentioned in a tweet that Cardan needed a bridge to another ecosystem and Cosmos – a Cardano bridge supported by Sifchain – was announced immediately after ,” Cardano Daily wrote on Twitter.
Logically, this cooperation is welcome, because the two have a lot in common : the same ambitions in terms of R&D, accessibility and community applications on the one hand, and the same goal of improving interoperability between the two networks on the other.
With EVM compatible layer (Ethereum Virtual Machine), this cross-bridge technology will enable a thorough bridging between Cosmos and Cardano. Both projects want to open up 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 the Cosmos that enables exchange, stakingand bridging Ethereum and Kosmos.
What will Cosmos bring to Cardano?
The Cosmos team defines their cryptocurrency as the “internet of blocks”. The Peggy 2.0 bridge brought to this alliance will provide unprecedented access to decentralized governance protocols for growth and new liquidity. Cardano should therefore see its number of users and transactions are increasing rapidly.
Cosmos is built on interoperability, paired with Cardano’s EVM-enabled layers. It will provide developers and users with access to an ecosystem of chains, DA applications, assets and utilities. All in an independent and highly decentralized manner. In addition, Cosmos brings an essential plus to Cardano: security. With hacking Nomad bridge, security is now a priority for both projects.
The Cosmos ecosystem is recording some impressive numbers, including: $4.2 billion in invested crypto assets. We can also mention his $200 million in cross-transactions per month. And finally, there is a 40 channels and thousands of DA applications. Following the announcement of the future bridge between Cardano and Cosmos, Cexplorer announced a 95% spike in the Cardano network. However, despite their impressive potential, some members of the Cardano community remain skeptical.
Conclusion
For some, the timing is not good. They think the two blockchains are too fast to think about interoperability. The priority should be security, manageability 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 Ronin’s hack in mind. This allowed hackers to mine more than $550 million in ETH and USDC.
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PhD student in financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for the better democratization of DeFi.
