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Every blockchain protocol, including Cardano (ADA), aims to grow, and in doing so, there is a huge need to interoperate with chains with huge liquidity. This is the case with Cardano, as a new bridge helps it connect to the Bitcoin network.
Cardano and Bitcoin interoperability here
As revealed on X by elraulito, the CTO of FluidTokens, a smart contract built on Plutus V3, allows a Bitcoin wallet to control it directly. This product has broad implications, as it allows Bitcoin users to send ADA tokens and even stakes in any Cardano pool without a new wallet being needed.
While Ethereum is regarded as the best blockchain for decentralized finance (DeFi) innovations, Bitcoin is being increasingly adopted in unconventional payment transactions. Building a product that helps Bitcoin and Cardano holders freely transfer value to one another creates a new economy.
Cardano Founder Charles Hoskinson reacted to the update with a GIF showing surprise on X. The Cardano founder is generally known as a strong advocate for sound technology and is moving to position the protocol for long-term success.
Fight against Bitcoin dominance
Originally, Cardano’s design targeted competing with Ethereum; Charles Hokinson is now arguably nursing a more advanced vision to take on Bitcoin.
In a recent report, the Cardano founder talked down the long-term survival potential of Bitcoin. This is because of the lack of decentralization qualities attributed to the pioneering network.
Cardano was once accused of being a centralized protocol. However, this changed recently, with the deployment of the Chang hard fork on the mainnet. Cardano’s governance was effectively handed over to the community during the long-awaited Voltaire Era.
For the many ways Cardano is currently innovating, the Cardano founder hopes that in the long term, it might outshine not only Ethereum but also Bitcoin in key performance metrics.
Arman Shirinyan
Gamza Khanzadaev
Yuri Molchan
Alex Dovbnya