Cardano ecosystem set to expand with custom-built sidechains

The Cardano toolkit will allow creators of sidechains to choose their consensus mechanism and other application-specific features, whilst inheriting the security of the main chain.

Cardano ecosystem set to expand with custom-built sidechains

The team behind the Cardano ecosystem will release a software toolkit later this month that will enable developers to deploy custom-built sidechains on Cardano aimed at improving the ecosystem.

The news was announced on Jan 12 by input-output global (IOG) a blockchain engineering company also known as input-output Hong kong (IOHK) the announcement included the official technical documentation for the sidechain toolkit.

IOG developers have already used the toolkit to construct an Ethereum Virtual Machine (EVM) compatible sidechain public Testnet as a proof-of-concept. when the audit is complete anyone will be able to deploy decentralized applications, create smart contracts and move tokens between different types of testing chains.

The Cardano toolkit will enable the creators of the sidechain to choose their consensus mechanism for other application features.

A sidechain is an independent blockchain that works adjacent to the parent blockchain often referred to as the Mainnet Sidechain often attempts to add scalability to the Mainnet which often prioritizes decentralization and security. 


IOG hopes the sidechain development will pave the way for mass adoption in the Cardano ecosystem and hopes to see a family of Cardano sidechains and partner chains emerging soon.

The news has Cardano fans pumped with one member of the community hoping that Cardano experiences a similar price pump similar to that of Ethereum 2020-21 when many layer 2 sidechains and utility tokens were rolled out. 

Another member of the Cardano fanbase called the toolkit deployment a great move that it will spread the usage of sidechains for Cardano in the months to come. 

However, IOG expresses that the toolkit won't serve as a complete solution.

"There are some known areas for improvements like the bridge experience SPO rewards mechanism and the security model all these areas will be worked on with the community as we go-carefully and steadily collaborating for feedback thoughts and recommendations."

Also, the SIdechain improvement protocol will soon introduce parallel accounting styles as part of its Basho phase to improve interoperability in the Cardano roadmap.

Furthermore, This isn't the first sidechain solution that IOG has integrated on Cardano too having already built a more basic EVM-compatible sidechain in July to get the sidechain development rolling. 

Related: Polygon Proposes Hard Fork to address, Gas fee spikes