Key Insights:
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Cardano and Wanchain are collaborating to launch interoperability for Cardano.
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Wanchain bridges connect EVM and non-EVM networks without any intermediary networks.
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ADA’s recovery has been slow, especially after yesterday’s 8% drop.
When launched in 2018, Cardano promised a future where the chain would be naturally interoperable with other blockchains in the crypto space.
Now even though we haven’t seen that happen as one would expect, Cardano is still managing to enable interoperability in its ways.
Wanchain at Cardano’s Rescue
In a press release today, the blockchain announced its collaboration with Wanchain. Cardano will enable interoperability between the Cardano mainnet, Cardano sidechains, and other blockchain networks.
This will allow Cardano to deploy decentralized, non-custodial, bi-directional cross-chain bridges connecting it to additional Layer 1 blockchains.
This is possible thanks to Wanchain’s development as a decentralized blockchain interoperability solution with an Ethereum-like environment that works with industry-standard Ethereum tools, DAPPs, and protocols.
Given that Wanchain bridges currently connect over 15 different Layer 1 and Layer 2 networks, Cardano joining this network will open up opportunities for the decentralized applications built on the network to interoperate with other DeFi and web3 ecosystems.
This way, the possible use cases for ADA holders on other chains will increase. At the same time, it will pave the way for BTC, ETH, DOT, WAN, XRP, and other coins to be used in Cardano’s own Dapp ecosystem.
Commenting on this collaboration, the Chief Product Officer of IO Global, Dynal Patel, said,
“Interoperability is one of the driving forces behind the Cardano blockchain, and as such the Cardano ecosystem will continue to grow. Crosschain bridges are one aspect of this strategy, and Wanchain’s secure infrastructure brings a valuable new contributor into the ecosystem. Wanchain will provide added utility to the Cardano community, allowing users to interact with DeFi applications on a number of networks, and take advantage of the expanding ecosystem.”
Through this collaboration, Cardano users and Dapp developers can also benefit from the L1 blockchain’s transition into a multi-chain ecosystem with much higher scalability.
Cardano Investors Remain Wary
Though the ecosystem is developing and expanding, the altcoin as an investment option is not growing by a lot. After yesterday’s almost 8% drop, ADA invalidated all the growth made by the coin during the mid-March to April rally.
Trading at $0.82, with no particular incentive to it, ADA will be struggling to mark recovery and increase investment inflows for the altcoin.
This article was originally posted on FX Empire
