Cardano has made a strategic leap by embracing Polkadot’s Substrate to develop its partner chain project. As per Polkadot’s tweet on X platform(formerly Twitter), this move showcases Substrate’s versatility and its simplicity for integration with other ecosystems. Significantly, Cardano aims to augment scalability through sidechains. Additionally, these sidechains will foster interoperability among specialized blockchains.
1/ Cardano will use Substrate, the foundation of the Polkadot SDK, to build out its “partner chain” project — showcasing Substrate's potential to expand across Web3, and its ease of use for other chains and ecosystems 🛠️
— Polkadot (@Polkadot) November 6, 2023
Moreover, after extensive four-year research, Cardano has chosen to do something other than craft an independent framework. Hence, it has selected Polkadot SDK for its flexible and modular design. Consequently, this choice will propel an interoperable future. Additionally, Midnight Network, led by a Parity Tech alumnus, is poised to be the initiative’s first adopter.
Furthermore, Polkadot’s consensus mechanisms, BABE and GRANDPA, offer a robust balance between liveness and safety. Besides, its NPoS consensus aims to expand its validator network to 1,000 nodes. This expansion strategy will help mitigate the risk of stake centralization while ensuring fair reward distribution. Moreover, Polkadot’s vision, established years before Ethereum’s, offers a seasoned multi-chain framework.
• Cardano has announced its use of the @Polkadot tech stack for partner chains.
— goku (@0xgoku_) November 3, 2023
• In short, Cardano is going for sidechains to enhance scalability and enable interoperability b/w specialized blockchains, leveraging its liquidity and security.
• After 4 years of research,… https://t.co/6QJQaPP4NK pic.twitter.com/0f732ekzxP
Additionally, Charles Hoskinson’s exposition at the Cardano Summit 2023 marked the culmination of global research and development efforts. Significantly, IOG will integrate Substrate with Cardano, enhancing it with trustless connections and contributing to the Substrate community with new components. Moreover, Cardano’s design separates the settlement from the computation layer, ensuring robust scalability. Hence, partner chains can construct their computation layers while utilizing Cardano’s settlement layer.
Regarding recent market performance, a technical analysis reveals that Cardano (ADA) has witnessed a bullish breakout. The daily price chart displays a series of green candlesticks, indicating that the closing price has consistently exceeded the opening price, signaling positive sentiment among traders. The moving averages, including a 50-day Exponential Moving Average (EMA), emphasize the recent upward momentum.
Moreover, the volume bars depict a surge in trading activity, particularly on days when the price increased. This heightened volume suggests a growing interest in ADA and a reaction to recent developments within the Cardano ecosystem.
However, the Relative Strength Index (RSI) is around 78, potentially indicating that ADA is overbought. Traders should exercise caution and closely monitor the market for potential price corrections or profit-taking.
Cardano’s integration with Polkadot SDK is a strategic move that underscores a commitment to scalability, interoperability, and a multi-chain future. This partnership is not only a technical advancement but also a testament to the collaborative spirit of blockchain innovation. With this initiative, Cardano sets a precedent for future blockchain partnerships, fostering an environment where technology stacks become bridges rather than barriers.
