CoinEfficiency

Canto's Strategic Migration to Ethereum Layer 2

Explore Canto's transition to Ethereum's Layer 2, enhancing blockchain efficiency with Polygon's ZK technology.
Published on 2023-09-19

Canto's Migration to Ethereum Layer 2

Canto, a Layer 1 blockchain launched in 2022, is set to migrate to Ethereum's Layer 2 (L2), marking a significant move in the blockchain industry. Utilizing Polygon's Chain Development Kit (CDK), this transition will enable the creation of zero-knowledge (ZK) chains, focusing on real-world assets and contributing to the emerging "neofinance" future. This new era aims to achieve financial efficiencies by integrating off-chain assets with blockchain protocols.

Advantages of Ethereum Integration

The migration allows Canto to benefit from the unified Polygon ecosystem, offering seamless access to Ethereum. A best-in-class ZK prover will ensure user security, inheriting Ethereum's cryptographic strength and enhancing trust and decentralization. This setup eliminates the need for fraud-proof incentives, making the system more reliable.

Development and Community Involvement

If the Canto Commons framework reaches an agreement, core developers will build a ZK rollup on Ethereum's L2. This initiative aligns with Canto’s principles of permissionless sovereignty and public liquidity. The transition is vital for achieving deep liquidity, essential for scaling neofinance.

Maintaining Decentralization

Canto will employ a Plonky2 ZK proving implementation while retaining its proof-of-stake validator set for decentralized sequencing. Existing validators and stakers will experience no changes, ensuring continuity in operations.

Industry Trend Towards Ethereum

Canto's migration follows a broader industry trend, with platforms like Celo, Fantom, Astar, Immutable, IDEX, and Palm Network also transitioning to Ethereum Layer 2s. These moves highlight the growing importance of Ethereum's ecosystem in blockchain development.

Diverging Paths in the Blockchain Space

Not all protocols remain with Ethereum. Recently, dYdX announced plans to migrate to Cosmos for a decentralized order book exchange. Similarly, Maker plans to shift to a new, efficient chain using Solana's codebase, signaling diverse strategic approaches in the blockchain industry.

What is Coinefficiency?

Coinefficiency is your go-to platform for optimizing cryptocurrency trading, investments and strategies. We provide a comprehensive suite of tools to analyze market trends, monitor price movements, and execute effective trading strategies. Whether you're a seasoned trader or new to crypto, Coinefficiency helps you maximize your profits with data-driven insights.

Why Use Coinefficiency?

  • Advanced market analytics to identify trading opportunities.
  • Compare markets relative performance.
  • Understand market cycles over time. See market levels.
  • Compare buy-and-hold, portfolio rebalancing, Dollar-Cost-Averaging trading strategies.

With Coinefficiency, you can stay ahead of the market and execute efficient trading strategies effortlessly.

Get Started with Coinefficiency

Ready to optimize your crypto investments? Take control of your portfolio with cutting-edge tools designed for both beginners and experts.