AI platform SingularityNET is considering a partial transition from the Ethereum blockchain to Cardano. The ADA course welcomed the news.
Artificial Intelligence (AI) -based blockchain platform SingularityNET has announced a partnership with IOHK, led by Cardano founder Charles Hoskinson.
The statement says that the parties are "seriously discussing" the possibility of partially porting the decentralized AI-protocol SingularityNET from the Ethereum blockchain to Cardano. Speed problems and high transaction costs on the Ethereum network were cited as the reasons behind this intention.
Ethereum, you're in trouble
In recent months, amid a boom in the DeFi segment, commissions on the Ethereum network have been relentlessly breaking records and exceeding the average of $ 15 several times.
This trend, coupled with scaling concerns, has forced the SingularityNET team to consider looking for an alternative blockchain. As Ben Herzel, CEO and Founder of the SingularityNET Foundation commented:
"The Ethereum blockchain's current problems with transaction speed and cost has increased the urgent need to find an alternative platform to support SingluarityNET."
As a result, the choice fell on the Cardano blockchain. Herzel said Cardano and SingularityNET share common values and a development style focused on cutting-edge computer science and mathematics.
The Cardano ecosystem is currently experiencing quite active growth and plans to offer its users even more new functionality, including Plutus smart contacts.
However, Herzel noted that he believes in the possibility of combining different blockchains and that SingluarityNET may partially remain on Ethereum.
Cardano price welcomed this news
If the company does indeed launch the migration process, it will move its native AGI token from ERC-20 format to Cardano, as well as switch to Plutus smart contacts. However, so far no final decision on this matter has been announced.
Nonetheless, the Cardano (ADA) course reacted with enthusiasm to the news of such a collaboration. At time of writing, it is trading in the $ 0.104 region, consolidating 7% from the $ 0.096 low recorded on Sept.30.
Against this background, the market capitalization of ADA returned to the $ 3.2 billion mark, which helped the coin to again find itself in the top 10 cryptocurrencies by market capitalization, according to Coinmarketcap.
We can add that over the past week, the ADA rate has risen in price by 37% from a 3-month low of $ 0.075. Earlier, at the end of July, the currency marked a 2-year high at $ 0.15, and its all-time high was set during the crypto boom in January 2018 above $ 1.15.
