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Cardano Increases Focus on Interoperability Amid New Investment: Details

Sat, 02/26/2022 - 15:00
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Tomiwabold Olajide
Cardano's focus on interoperability grows
Cardano Increases Focus on Interoperability Amid New Investment: Details
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EMURGO, the commercial arm of the Cardano blockchain, has disclosed an investment in Fourier Labs, an interoperability solutions provider. This comes as Cardano's focus on interoperability grows.

The latest investment intends to develop Fourier Protocol on Cardano, an interoperable, Ethereum Virtual Machine (EVM) compatible solution that would accelerate the migration of EVM-based projects to the Cardano ecosystem.

Cardano also plans to employ Fourier Labs' interoperability solutions to strengthen its dApp and user adoption by lowering transaction fees, increasing scalability and security.

According to Defi Llama, DeFi adoption is on the upswing, with approximately $200 billion in TVL (Total Value Locked) across all of the main DeFi protocols. In just two years, this represents an almost 240% gain. The main user onramp for DeFi is decentralized exchanges (DEX), although many of them now demand higher transaction fees.

Reduced transaction fees as a built-in feature of Fourier Labs' interoperability solutions might allow Plutus-based smart contracts and EVM Solidity-based smart contracts to be fully deployed on Cardano, increasing adoption.

Cardano's focus on scaling and interoperability grows

Cardano recently took the lead in adjusted transaction volumes, as reported by U.Today, and Cardano users also paid lower fees than users on rival networks.

Milkomeda, a Layer 2 Protocol that delivers EVM functionality to non-EVM blockchains, has announced the creation of a Cardano-Ethereum bridge testnet in partnership with the Nomad protocol. As a result, assets can be transferred between the two blockchains through the bridge. Interoperability between Cardano, Solana and other L1 blockchains remains a future goal of other Milkomeda deployments.

Cardano remains at the foothills of the Basho Stage, hence, scaling remains another focus for the blockchain. To achieve scaling in 2022, the path Cardano intends to take includes block size increase, pipelining, input endorsers, improvements in memory/CPU parameters for Plutus, and others.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.