Cardano’s ERC-20 converter tool will soon be open for beta testing, as Cardano is drawing closer to becoming a reality, with a token migration bridge soon to enter the testing phase.
It has been reported according to Francisco Landino, project manager at Input Output Hong Kong (IOHK), the research and development arm responsible for Cardano, that the platform’s ERC-20 migration tool is nearing testnet deployment.
However, Landino said that the ERC-20 converter tool will allow the migration of Ethereum-based tokens to the Cardano chain.
The report said that the planned ERC-20 converter bridge will follow Cardano’s highly anticipated Alonzo hard fork, which is touted to bring smart contract functionality to the network.
“Once deployed, users of supported Ethereum tokens will be able to bring them over from Ethereum’s congested network and take advantage of Cardano’s transaction capacity and lower fees, while enjoying enhanced security, reduced cost, and interoperability.”
Likewise, the IOHK executive also stated that the ERC-20 conversion tool was an important part of efforts to leverage Cardano’s value proposition over Ethereum in terms of parameters, such as scalability and transaction costs.
Cardano's ERC-20 token migrator will soon enter the testnet phase. https://t.co/RQQFeMYWsv — Cointelegraph (@Cointelegraph) May 18, 2021
Crypto projects will be able to migrate their native tokens to the Cardano chain via the converter tool. The Cardano analog will hold the same value as the Ethereum-based “coin,” and the baked-in two-way convertibility means the process can be reversed at a later time. Plans for the converter testnet deployment are already underway, with Landino stating that SingularityNET’s AGI token will be the first ERC-20 coin migrated to the Cardano chain.
Thus, the IOHK executive said the Cardano team envisages the potential for the ERC-20 converter tool to become a cross-blockchain bridge.