The interconnectivity of the two blockchains is made possible by Milkomeda, a Layer 2 protocol that allows blockchains to leverage the EVM.
On October 19, Charles Hoskinson, CEO of IOHK, announced on his Twitter account that Cardano and Algorand are interconnected, something that has been possible thanks to the Milkomeda Layer 2 protocol, which has deployed several Rollups making it possible for both chains to be compatible.
Neither Cardano nor Algorand are compatible with the Ethereum Virtual Machine (EVM). In fact, the architectures of the two blockchains are very different; Algorand uses its own infrastructure, called Algorand Virtual Machine (AVM), while Cardano has an architecture UTxO.
Having different architectures and since neither of the two blockchains is compatible with Ethereum, the Communication and interoperability between the two blockchains is very complicated.
How have Algorand and Cardano been connected?
This is where Milkomeda, a layer 2 protocol designed for offer interoperability to blockchains that are not compatible and at the same time bring the capabilities of the EVM to blockchains that are not compatible with Ethereum.
In this regard, Milkomeda has successfully deployed an A1 Rollup in Algorand. On the other hand, Blueshift, Cardano's leading DEX, has partnered with Milkomeda to offer its DEX model to other blockchains through the Milkomeda A1 Rollup.
So with the Milkomeda rollup, Algorand has access to Cardano's DEX models, which is built on the sidechain that Milkomeda has on Cardano.
In this way, the Algorand wrapped token, called milkALGO, will be the native cryptocurrency for all transactions.
Why Algorand?
In Milkomeda's announcement, they point out that Algorand has many capabilities that are attractive to users such as transaction speed, which can reach 6.000 transactions per second (TPS), as well as a focus on sustainability and a high level of decentralization, thanks to its consensus mechanism Pure-Proof-of-Stake (PPoS).
On the other hand, the fact that it is a blockchain Not compatible with Ethereum was another reason why Algorand was chosen. This is because Milkomeda wants to demonstrate that EVM capabilities can be brought to non-Ethereum-compatible chains, which is important to demonstrate its efficiency.
It should also not be forgotten that Algorand has closed several partnerships throughout this year, with several large entities such as the FIFA, UNAM or the Government of Nigeria, which makes it an option for the future.
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