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  • #033: 💡 Everything you want to know about the Cardano sidechain toolkit

#033: 💡 Everything you want to know about the Cardano sidechain toolkit

PLUS: 🤯 Will 2023 see a proliferation of sidechains on Cardano?

Author

Laura & Sooraj
January 30, 2023

Welcome to This Week In Cardano

Read time: 5 minutes

If you want to:

  • Quickly gain fundamental blockchain knowledge

  • Use a metric-base assessment framework to make informed decisions

  • Have example assessments of major Layer1s already bring you way ahead of 95% of the people in the space

Then this eBook is for you👇

A 3-Step Metrics-Based Assessment Framework for Layer1 Blockchains (eBook) (ENG)

🏆 The First Book in Crypto that provides a metric-based Assessment Framework to evaluate Layer1 Blockchains based on the dimensions of the Blockchain Trilemma. It's an easy-to-understand and accessible Assessment Framework for blockchain evaluation based on the 3 dimensions of the Blockchain Trilemma indicating the degree of decentralization, scalability, and security.❓Maybe you know some or all of this: ❌ You are new to the crypto space and you feel lost in all the diverse and opposing information❌ You don't know where to look for trustworthy information❌ You have no time to do endless hours of research❌ You have been in the crypto space for a while and you are tired of all the hype and coin pumps.❌ You want to build your profound understanding of different blockchain projects❌ You want to understand the differences between projects from a fundamental, metrics-based perspectiveBut don't worry. We have been there, too. This is why we wrote this book!When it comes to classical stock evaluation, standardized frameworks, metrics, and procedures exist.What is already common sense in this asset class is a green field in the crypto market. Here, many bases their investment decisions due to complexity and information asymmetries on following the hype on Twitter or the narrative of influencers who might just want to dump a coin.This eBook sheds some light on the currently unstructured, distributed, and inconsistently crypto asset market.🤔 How is this possible, you might ask?The ebook provides you with a go-to framework for a Layer1 Proof of Stake Blockchain Assessment.......so that you will be able to understand:✅ What is the difference between stock evaluation and crypto assessments?✅ Why is a metric-based Assessment Framework essential to evaluate Layer1 blockchain projects?✅ What is the Blockchain Trilemma and why is the Assessment Framework based on it?✅ What metrics does each dimension of the Blockchain Trilemma contain?✅ How to apply the Assessment Framework - A simple guide.✅ Example assessments that show you step-by-step how to apply the Assessment Framework✅ A list of resources to research the metrics and to conduct your own assessment of Layer1 blockchains. 💎 How you benefit from the book:💎 You gain fundamental blockchain knowledge you would need weeks or months to collect the information from websites, Youtube and Twitter💎 You have a go-to framework that provides an understanding and gives an indication of the status quo of Layer1 Proof of Stake Blockchains, regarding their degree of decentralization, scalability, and security 💎 You have guiding principles and fundamental metrics at hand that helps you when it comes to making investment decisions. (because conducting such a quantitative assessment before making an investment decision should be a prerequisite for everyone in crypto for the long-term game.)💎 The provided example assessments of major Layer1s already bring you way ahead of 95% of the people in the space who just follow the next best Crypto influencer when it comes to their investment decisions.📖 What you will get - A sneak peek into the outline of the bookIn chapter 1 we will dive into the crypto assessment and shed light on why a metrics-based assessment framework is important.Chapter 2 deconstructs the development of the L1 Proof-of-Stake Blockchain Assessment Framework based on the Blockchain Trilemma and provides a detailed step-by-step guide and explanation of what metrics the Assessment Framework comprises.Chapter 3 provides example assessments of major Layer 1 Blackchins and demonstrates the practical application of the developed framework. Finally, Chapter 4 provides you with the most basic resource links to apply the Assessment Framework to conduct your own assessmentThis Assessment Framework has been deliberately designed to be as simple and accessible as possible so that also crypto beginners can work with it. I hope it will help you to start analyzing the fundamentals of existing or upcoming blockchain projects and to make more informed decisions.🎁 After you buyAfter you purchase the eBook, the download link will take a few minutes to come to your email inbox due to PDF stamping. Make sure you enter the correct email address at checkout. It can take up to 10-15 minutes before you receive the link. Be patient :)What if you haven't received the link?If you don't get the email with the link within 30 minutes reach out to us and we'll send it manually as soon as we can! Gumroad can act up sometimes :( ⚠️ Important noticeThis is a PDF download. No physical product will be mailed to you.We don't accept returns of the eBook - for obvious reasons. Make sure it's for you before you buy.

https://bit.ly/3PXcPcR

Hi Cardano Community,

Welcome to This Week In Cardano - your daily Newsletter covering the major updates in the Cardano Ecosystem!

This is what we have for you today:

  • 💡 Everything you want to know about the Cardano sidechain toolkit

  • 🤯 Will 2023 see a proliferation of sidechains on Cardano?

  • 💎 Gem of the Day

This Week In Cardano

Your Daily Newsletter covering all major events happening in the Cardano Ecosystem

Everything you want to know about the Cardano sidechain toolkit

In today's edition, we are talking about the new sidechain toolkit released by IOG. The release of a sidechain toolkit is a major milestone in the development of Cardano's technology.

With its introduction, businesses and organizations can now take advantage of the benefits offered by sidechains, such as increased efficiency, flexibility, and scalability, while leveraging the security of Cardano.

What is a sidechain?

A sidechain is a separate blockchain that runs parallel to a main blockchain, which depends on its main chain and is connected to it by a bridge allowing for assets to be securely transferred from one blockchain to another.

This enables the creation of specialized blockchains with specific features or capabilities while still utilizing the security and trust of the main blockchain.

What are the benefits of a sidechain?

Cardano is the most decentralized PoS blockchain, with thousands of independent stake pools and millions of wallet addresses. Sidechain provides a secure and decentralized blockchain like Cardano to be more flexible and allow experimentation.

  • Sidechains extend the capabilities of the main chain, making the blockchain more scalable and extensible without compromising the stability or security of the main chain.

  • This allows for a more interoperable environment where different applications and communities can have their own sovereignty and design choices.

  • Sidechains can also provide a way to test new innovations and applications before implementing them on the main blockchain.

 Would the sidechain have its won consensus?

Yes, the sidechain operates with its own consensus algorithm and distinct features. It is linked to the main chain via a bridge that facilitates the transfer of assets between the chains.

But the main chain provides the security for the sidechain to determine the finality of its blocks through a consensus mechanism that relies on the security of the main chain.

What are the components of the Cardano sidechain toolkit?

The Sidechain Toolkit is a set of components and recommendations for extending Cardano.

It consists of three main components:

  • Main chain Plutus scripts

  • A chain follower

  • and the Sidechain module

The toolkit also includes a technical specification document that provides an introduction and guide to Cardano sidechains.

The document is designed to empower developers and provide a foundation for custom sidechain development.

How does the toolkit help the Cardano ecosystem?

Blockchain developers, DApp developers, stake pool operators, and DApp users can all benefit from custom sidechains.

The toolkit components easy deployment of a variety of functions:

  • The transfer of data and assets between the main chain and custom sidechain.

  • Support various consensus protocols and ledger rules and languages.

  • Leverage the the existing stake pool community secure small chains.

These features allow developers to create blockchains for specific use cases by leveraging on Cardano's security and decentralization.

Will 2023 see a proliferation of sidechains on Cardano?

Cardano already sees an incredible amount of development activity when it comes to sidechains.

Here are some of the developments regarding sidechains :

World mobile's Cardano sidechain using Tendermint (Cosmos) bringing more interoperability to the Cardano ecosystem

MIlkomeda EVM Sidechain on Cardano is already up and running for almost ten months now

Shareslake sidechain brought the first stablecoin to the Cardano ecosystem

Conclusion

As it is easier now for developers to deploy sidechains on Cardano with the sidechain toolkit, we anticipate some of the Cardano dApps deploying their own sidechains on Cardano in the near future.

As Appchains provides a flexible and customizable environment for tailormade solutions, sidechain would be seen as a compelling solution by many dApp teams on Cardano. So, 2023 could be the year where we see some major dApps deploying their own sidechains on Cardano.

Interested in sponsoring this Newsletter?

💎 Gem of the Day 🧵

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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