Cardano (ADA) founder Charles Hoskinson has announced that Algorand (ALGO) has joined the Cardano network following the news of the Mikomedia A1 Rollup being published on Algorand.
— Charles Hoskinson (@IOHK_Charles) October 19, 2022
What is Mirco Media?
Mikomedia is a blockchain interoperability provider focused on providing EVM capabilities to originally non-EVM smart networks like Cardano. In layer 2 A1 rollup, the wrapped ALGO (called milkALGO) becomes the native currency for all transactions.
according to publication“Algorand is a non-EVM chain with multiple other proprietary elements that makes it perfect for one of the first rollups outside the Ethereum (ETH) ecosystem.”
“Milkomeda’s primary focus is to promote blockchain interoperability. This is achieved by bringing EVM capabilities to non-EVM chains while creating a seamless user experience.”
Two products have already been published in the A1 rollup: Celer and Blueshift. Blueshift is a decentralized exchange based on the Milkomeda Cardano C1 sidechain. Algorand users will have access to the protocol now that it has been deployed to the AI rollup.
What does this mean for layer 2 networks?
The launch of the Layer 2 A1 rollup is a big event for Cardano and Algorand as it will allow the two networks to connect. Without Rollup, this would not have happened, as both blockchain networks use different architectures.
Cardano is based on the UTxO architecture and Algorand uses the Algorand Virtual Machine (AVM). Without a Layer 2 rollup, it would be impossible to connect or swap two assets.
Blueshift also plans to release a feature that will allow users on both networks to do cross-chain swaps.
During that time, the development did not affect the price of ADA or ALGO.
ADA is down 0.5% over the last 24 hours and down 7.3% over the past 7 days, trading at $0.3536.
ALGO is trading at $0.3132 at the time of writing, down 0.2% over the past 24 hours.