Charles Hoskinson talks about another thing that could benefit Blockchain
Cardano ranks as the third largest blockchain with a market capitalization of $11.52 billion
The Vasil upgrade was successfully launched on the mainnet on September 22nd. Ahead of the much-anticipated upgrade, Artano, a Cardano-based NFT project, published the findings of extensive testing. Using Plutus v2, a reduction of over 90% in script size and a corresponding cost reduction of over 75% was reported.
Although cost reduction is generally beneficial for attracting new users to the blockchain, concerns now concern the profitability of SPOs (stake pool operators).
Per stake reward data, Cardano ranks as the third largest blockchain with a market cap of $11.52 billion. Despite the huge stake amount, Cardano’s stake reward of 3.62% does not attract like others. Observers claim that the low reward rate will ensure that the blockchain does not experience inflation or hyperinflation.
Sidechains solve this problem. SPOs will get multiple revenue streams by maintaining the sidechains and getting paid with the native tokens
— Charles Hoskinson (@IOHK_Charles) 24 September 2022
In response to a user who expressed concerns about the profitability of SPOs amid low stake rewards and a big cut in transaction fees after the Vasil upgrade, Cardano founder Charles Hoskinson noted, “Sidechains solve this problem. SPOs will get multiple revenue streams by maintaining the sidechains and getting paid with these native tokens.”
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Cardano is constantly expanding its community of developers and blockchain enthusiasts. According to recent IOG statistics, there are over 6.1 million native tokens and 1,107 projects building on Cardano to date.
Cardano sidechains
Adding a sidechain to Cardano makes it possible to create opportunities for developers using the Solidity language on Ethereum. For example, using the Ethereum Virtual Machine (EVM), developers can easily build dApps on top of Cardano.
Currently, sidechains running on Cardano include Milkomeda, Wanchain. Orbis is an additional scalability solution being developed within the Cardano ecosystem, which will act as a ZK (zero-knowledge) roll-up of the Layer 2 protocol.
The IOG plans to release a new permissionless EVM sidechain this year. The sidechain would allow developers to write Solidity smart contracts on Cardano and create EVM-compatible dApps and ERC20-compatible tokens (and, eventually, their own sidechains).
