new bridge between Cosmos (ATOM) and Cardano (ADA)

Sun August 21, 2022 ▪ 7:00 a.m. ▪

4
min read – by
Cédrick Aimé GUELANG OFALABEN

A bridge between Cardano and another ecosystem has been expected for a while. It finally seems that the choice fell on Cosmos. This new bridge between Cosmos and Cardano should boost the adoption of the two cryptocurrencies, but it is not to everyone’s taste. Discover in this article all the details of this connection between the Cosmos crypto and the Cardano blockchain.

New bridge between Cosmos and Cardano

What are the challenges of the Cosmos-Cardano connection?

The development of cryptocurrencies logically leads to changes. To stay competitive by offering better services, updates become imperative. It is for this reason that we sometimes see connections between blockchains, as is currently the case between Cosmos and Cardano. Indeed, a tweet from Cardano Daily revealed that there will soon be a bridge between Cardano and Cosmos. “Coincidentally, I mentioned in a tweet that Cardano needed a bridge to another ecosystem and Cosmos — a Sifchain-backed Cardano bridge — was released right after ,” Cardano Daily tweeted.

Logically, this collaboration is welcome, because the two have a lot in common : the same ambitions in terms of research and development, accessibility and community applications on the one hand, and the same objective of improving interoperability between the two networks on the other.

With the EVM compatible layer (Ethereum Virtual Machine), this cross-chain bridge technology will enable the seminal bridge deployment between Cosmos and Cardano. Both projects want to open up new cross-channel opportunities to boost their appeal. The Cosmos-Cardano bridge is in development right now. It will be powered by Peggy 2.0 and Sifchaina DEX omni-chain on Cosmos which allows the exchange, the stakingand bridging Ethereum and Cosmos.

What will Cosmos bring to Cardano?

The Cosmos team defines its cryptocurrency as an “internet of Blockchains”. The Peggy 2.0 bridge it brings to this alliance will provide unprecedented access to decentralized governance protocols for growth and new liquidity. Cardano should therefore see its number of users and transactions increase rapidly.

Cosmos is built on interoperability, coupling with Cardano’s EVM-enabled layers. It will give access to an ecosystem of chains, DApps, assets and utilities to developers and users. All in an independent and very decentralized way. In addition, Cosmos brings Cardano an essential plus: security. With the hacking of Nomad Bridge, safety is now a priority for both projects.

The Cosmos ecosystem records some impressive numbers, including: $4.2 billion in staked crypto assets. We can also state its $200 million in cross-chain transactions per month. And finally, it has a 40 channels and thousands of DApps. Following the announcement of the future bridge between Cardano and Cosmos, Cexplorer announced a 95% jump in the Cardano network. However, despite its impressive potential, some members of the Cardano community remain skeptical.

Conclusion

For some, the timing is not good. They think that the two blockchains are too recent to think about interoperability. The priority should be on security, governance and scalability. Bridges like the ones Cosmos and Cardano want to build are a prime target for hackers. They will not hesitate to try to infiltrate wallets and rob users. We still have the Ronin hack in mind. This has allowed hackers to pocket more than $550 million in ETH and USDC.

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Cédrick Aimé GUELANG OFALABEN avatar
Cédrick Aimé GUELANG OFALABEN

Doctoral student in financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for a better democratization of DeFi.

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