Why Cardano’s ERC-20 Converter Is A Big Deal

December 8, 2021 10:31 am

Ethereum sought to become the be all end all crypto and smart contract platform.

Its wide array of support for ERC-20 tokens, altcoins built on the Ethereum blockchain, NFT’s, and a number of unique DeFi proposals had investors and enthusiasts alike bullish for the crypto giant.

However, those features continue to be less exclusive to the Ethereum network with each passing update to the Cardano network.

The upcoming ERC-20 converter will bring the Cardano network one step closer to achieving its goal of being a bridge for all cryptocurrencies, and a one-stop shop for all things digital finance.

As a friendly disclaimer and reminder, I am invested in ADA, and none of this is investment advice—it is merely educational. Be sure to do thorough research before making any investment.

That being said, here’s more on Cardano’s upcoming ERC-20 converter:

AMB Crypto had more on the story:

“We are currently building out and collaborating on multiple bridges to connect Cardano to other blockchains, and this first converter is a vital artery in this system. The more these connections grow, the higher the network effect to boost the flow of liquidity within the Cardano ecosystem.”

According to IOHK’s release, a user can put their converted tokens into the Daedalus or Yoroi wallets. Furthermore, reconversion to the ERC-20 standard is possible. 

Crypto Globe explains:

“Users can convert their Ethereum tokens in just a few clicks, and when moved across, these tokens will be ‘translated’ into a special native token on Cardano that has the same value and works just like an ERC20. Additionally, if the user wishes to do so at a later stage, they can move their tokens back to the source network by burning them on Cardano. Two-way convertibility is baked in.“

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