The team behind Chinese blockchain Nervos are building a cross-chain bridge to connect with Cardano, which users to use both chains’ native tokens interchangeably.

Why it matters: The bridge could be a major boost for Nervos user numbers. Cardano is the world’s sixth-largest cryptocurrency, with a $55.6 billion market cap, almost 10 times Nervos’s.

  • It will also grant Cardano developers access to Nervos development tools, which are oriented towards the growing field of decentralized finance (DeFi). 
  • This is Cardano’s first cross-chain bridge.
  • Blockchain development teams are to form an internet to connect different networks. It’s a race to see which companies will make the best tools to connect blockchains. 

Details: The cross-chain asset bridge will allow users to use the two networks’ native tokens interchangeably across the two blockchains, using their existing wallets, Nervos said in a statement sent to TechNode. The bridge will use Nervos’s own cross-chain technology, Force Bridge. 

  • Users will also be able to move and trade user-defined tokens across the two blockchains. The two public blockchains allow developers to build their own tokens, mainly used for decentralized applications (dapps), using either chain’s software development kits.
  • By connecting the two blockchains and enabling transactions between their native tokens, Cardano and CKB, developers will tap into both networks’ user bases. The bridge could make both networks a more appealing ecosystem for developers.

Nervos: Hangzhou-based Nervos is building a fully-fledged public blockchain protocol, including a virtual machine.

Connect chains: Nervos is also trying to tap into the growing need for interoperability, connecting distributed ledgers to form a blockchain web.

  • In addition to Force Bridge, Nervos has built PW Core, a software development kit that allows developers to build dapps that different blockchains can access. It also built Polyjuice, a blockchain layer that lets developers move smart contracts from Ethereum to Nervos. 
  • Other Chinese blockchain startups like Neo and Conflux are also working on interoperability.

Eliza Gkritsi

Eliza is TechNode's blockchain and fintech reporter. When she isn't obsessing over the rise of distributed ledger technology in China, she helps with editing.