Cardano Developer IOG Deploys Sidechain Toolkit to Boost Blockchain

The company behind the Cardano blockchain said it has deployed a toolkit for building custom sidechains, allowing developers to create blockchains for specific use cases on the system.

The toolkit, available initially on a testnet – a blockchain that mimics real-world usage, will allow the sidechains to benefit from Cardano's security and decentralization as well as from the support of the existing community, Input Output Global said Thursday. Sidechains are separate blockchains built on, but running independently of, a main blockchain.

Cardano joins Polkadot in offering the framework, which allows developers to experiment with niche applications in a live environment without compromising the main network. Sidechains can increase the transaction capacity, enabling more data to be processed without increasing the risk of network downtime.

IOG said its goal with the toolkit is to extend Cardano's capabilities by making it more scalable without compromising the stability or security of the main chain. The toolkit allows for the creation of sidechains, each with its own consensus algorithm, meaning applications built on a sidechain won't depend on Cardano’s network rules to function.

The sidechains are connected to the main chain through a bridge that allows asset transfer between the chains.

Cardano’s native ADA token was little changed following IOG’s announcement, rising just 3% in the past 24 hours, in line with the broader crypto market.