Cardano announced that it will set up the ERC-20 bridge to move Ethereum-based tokens to the network. The bridge will soon enter the testnet stage.
In his blog post , Cardano explains that users can move ERC-20 tokens from the Ethereum network to Cardano with the ERC-20 converter . He says that with the conversion process, users can take advantage of Cardano’s transaction capacity and low fees.
Stating that the Ethereum network is a functional but slowing and expensive network, Cardano refers to the increase in gas fees and states that he wants to provide benefits to users in areas such as transaction capacity and cost.
The ERC-20 converter launch is expected to follow the Alonzo hard fork, which is expected to come to life in the summer.
How does the ERC-20 converter work?
The ERC-20 converter is defined as a tool that enables organizations and users to send ERC-20 tokens to the Cardano network. The tokens to be sent will be converted into a special token with the same value in Cardano and works like ERC-20.
Institutions that want to move their tokens to the Cardano network and ERC-20 token users will be able to benefit from this tool.
According to the reports, users will be able to transfer tokens to the Cardano network with a few clicks. Users who log in to the ERC-20 converter account will be able to move by specifying the tokens they want to convert and the amount.