Cardano founder Charles Hoskinson did the unexpected offer competing blockchain protocol Algorand (ALGO). Hoskinson suggested to Algorand that they migrate their codes to the Cardano platform, demonstrating the potential benefits of moving to a sidechain.
The Cardano founder made the announcement in response to a tweet from John Woods, Chief Technology Officer of the Algorand Foundation.
John posted an updated video to share with the community the state of staking on the Algorand platform, the built-in security features, and the future. Even though the video was focused on Algorand, John did mention Cardano as one of the leading Delegated Proof-of-Stake (PoS) protocols today.
Perhaps based on this, Hoskinson made his statement, noting that it might make more sense for Algorand to consider becoming a Cardano sidechain.
Sidechains are not uncommon in the digital currency ecosystem, and while they have their own uniqueness, they often rely on the technical and security infrastructure of their parent chains to maximize their potential.
Designing and growing a properly structured and smart contract-based staking ecosystem takes time. While Algorand has a thriving ecosystem, Cardano’s expertise and the number of developers across the board cannot be compared and their experience can certainly be benefited from.
Although many members of the Algorand community disagree with Charles Hoskinson’s proposal, the Cardano founder has promised to help with all the finer points if the need arises to initiate a transition.
One of the main factors that make the proposal difficult to implement is the completely autonomous nature of blockchain systems. While interoperability is welcome, most Proof-of-Stake protocols operate through a Decentralized Autonomous Organization (DAO) system, which can make the decision process quite complex.
Algorand has a thriving ecosystem, as evidenced by the protocol’s market cap of over $829 million, ranking it as the 46th largest cryptocurrency. The protocol has established itself as an evolving Web3.0 protocol, using a rare partnership with FIFA during the last World Cup in Qatar.