In a bid to expand its ecosystem, Cardano will allow the development of customized sidechains. According to Input Output Global (IOG), the team behind Cardano, there will be a toolkit that will be released for developers to create the sidechains of their choice using the Cardano blockchain.
Sidechains are blockchains that are connected to a main blockchain or mainnet. They have a separate consensus mechanism and exist to improve the privacy or security of the mainnet. They are deployed to expand or scale existing blockchains as well as isolate specific functions from a main chain.
The IOG team explained that the toolkit has been used to develop an EMV-compatible sidechain testnet as a “proof of concept”.
Three components of the toolkit
A breakdown of the toolkit shows that it’s made up of Main-chain Plutus scripts, Chain followers and Sidechain specific modules. The first component, which runs on the Cardano chain, provides support for interaction between Cardano and the token of any sidechain that’s created. It enables secure cross-chain transactions and minting policies to support tokens of sidechains.
Chain follower traces the data of the main chain (Cardano) and rules that govern the sidechain. It communicates to the sidechain the events and rules that the main chain uses to control it. Lastly, the Sidechain-specific module, which is part of the sidechain node validator, relays data from the chain follower into the sidechain for processing.
Parallel accounting at Basho phase for Cardano
IOG further noted that the toolkit will undergo more improvement as it’s launched to the public. These improvements will include “the bridge experience, SPO rewards mechanism and the security model.” The team added that with the help of the community offering collaboration opportunities and feedback, improvement will be initiated.
There are plans to adjust the Cardano accounting style to include a parallel accounting style in the “Basho phase”, an era on the road map of Cardano, to improve its interoperability.
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