A Cardano ERC-20 converter is coming to the testnet phase according to the Commercial Project Manager at Input Output Global Francisco Landino as we can see more in our latest Cardano news today.
The analysts see the Cardano ERC-20 convertor as a critical component in competing against the smart contract platform Ethereum. Landino expects the convertor will entice significant numbers of ETH developers to abandon ship and to join the Cardano network. Word of the Cardano ERC-20 convertor has been news of public knowledge before Shelly Rolled out. It was during a live stream hosted by IOG CEO Charles Hoskinson when the details emerged:
“I’m also going to contract a firm, on a fixed cost contract, to do an ERC-20 convertor. So basically, what this means is that this team is going to go Ethereum, take all of the existing ERC-20 tokens and build a convertor to redeploy them on our testnet as a proof of concept once we have the native asset standard deployed.”
The ERC-20 converter will bring the Cardano chain enabling ETH tokens to port over and the launch will coincide with the Alonzo hard fork which is the final piece of the puzzle that brings in full smart contract functionality to the network. Landino also mentioned that there will be better throughput, cheaper costs and enhances security. Once it is deployed, the users of supported tokens will be able to bring them over from Ethereum’s heavily congested network and will take advantage of the transaction capacity and lower fees while still enjoying enhanced security, interoperability, and reduced costs.
The entire switching process was designed with convenience in mind and now the users can convert Ethereum tokens in just a few clicks. It works by translating ERC-20 tokens into a special native token on Cardano which is the same as the original ERC-20 token. Because the process is a two-way convertible, the users have the option to switch back at any time. As it can be seen from the Defi sucess on Binance Smart Chain, the users want lower fees and they operate on Proof of Authority mechanism as BSC offers three-second block times for a faster settlement time and fees paid in BNB that cost a few cents.