The firm behind the Cardano blockchain has been developing a set of tools to enable the creation of sidechains, with the first already deployed as a public testnet.

On Jan. 12, IOG stated that the team has constructed an Ethereum virtual machine (EVM)-compatible sidechain as a proof of concept.

“Sidechains make Cardano extensible and more scalable without compromising the stability or security of the main chain,” the blog post explained.

Cardano Keeps Building

Using the new toolkit, anyone can leverage the properties of Cardano infrastructure to build their own sidechain. In essence, it appears very similar to how Polkadot operates with custom sidechains.

The toolkit allows the sidechain to have its own consensus algorithm and features, it stated. It is connected to the root chain through a bridge that allows cross-chain transfers, and block finality is derived through main chain consensus mechanisms.

The toolkit is comprised of three primary components. These are main-chain Plutus scripts leveraging the Cardano programming language, a chain follower tracking the main-chain data and events that govern the sidechain, and the sidechain module, which interprets primary chain data and implements the necessary ledger adaptations.

The software is still being audited, IOG stated, adding that it will be available as a public testnet later in January.

“Developers will be able to try it out by running a few Solidity applications to get a feel for its potential.”

In a YouTube AMA video in December, Cardano co-founder Charles Hoskinson explained his vision for sidechains on the network. He actually suggested that Solana would be better off as a Cardano sidechain.

“So you could take Solana, replace the current consensus algorithm with something 25 times faster and doesn’t collapse all the time, make it a Cardano sidechain, Solana would then be paid to ADA holders to maintain it,” he said at the time.

ADA Price Outlook

ADA prices have gained a marginal 2.3% on the day to reach $0.329 at the time of writing, according to CoinGecko.

The token has been making solid gains recently as crypto markets finally start to move upward again. As a result, ADA is up 22.5% over the past week.

However, the Cardano coin is still down a hefty 89.3% from its September 2021 all-time high of $3.09.