backshare via telegramshare via twittershare via whatsappshare via facebook

What is Milkomeda Bridge - A Complete Guide

What is Milkomeda Bridge - A Complete Guide
back
  • Milkomeda is a protocol for Cardano and Algorand that offers EVM compatibility.
  • Milkomeda A1 is an EVM Rollup on Algorand, while C1 connects to Cardano.
  • Both solutions provide fast, low-cost transactions for DeFi applications.
  • Milkomeda A1 uses a modified version of the Algorand consensus algorithm for faster processing.
  • MilkADA is a wrapped version of ADA used as a settlement currency for transactions on Milkomeda C1.

Milkomeda is a layer two protocol for both Cardano and Algorand that offers Ethereum Virtual Machine (EVM) compatibility. Milkomeda A1 and C1 are two of the most popular products offered by the platform, allowing users to interact with a wide range of assets and blockchains. However, navigating the world of DeFi, L2’s and cross-chain transfers can be overwhelming for new users. That's why we've put together this deep dive guide to help you better understand Milkomeda A1 and C1, and how you can use them to your advantage.

What is Milkomeda?

Milkomeda is a groundbreaking protocol that aims to provide non-EVM (Ethereum Virtual Machine) blockchains with access to EVM capabilities, thereby enabling seamless interoperability between blockchains (Link to new article about interoperability when it’s uploaded). The protocol achieves this by using EVM Rollups, which are Layer 2 solutions that allow the execution of smart contracts off-chain while still providing the security and decentralization of the underlying blockchain.

Milkomeda A1 is an EVM Rollup that is built on top of the Algorand blockchain as an L2 solution. It uses a Plasma-style architecture that provides fast and low-cost transactions, making it an ideal platform for DeFi applications. With Milkomeda A1, developers can leverage the full capabilities of the EVM ecosystem, including Solidity smart contracts, ERC-20 tokens, and other popular DeFi protocols.

Milkomeda C1 is another EVM Rollup solution that connects to the Cardano blockchain as an L2 solution. Similar to Milkomeda A1, it also utilizes a Plasma-style architecture to provide fast and low-cost transactions. With Milkomeda C1, developers can create and deploy smart contracts on Cardano, opening up new possibilities for DeFi and other blockchain-based applications.

Milkomeda C1 Overview

Milkomeda C1 is an EVM Rollup that serves as a layer 2 solution for the Cardano blockchain. By implementing this Rollup, Cardano can access the benefits of EVM, making it possible to create and execute smart contracts with the same ease as on Ethereum.

At its core, Milkomeda C1 works by aggregating multiple transactions and processing them off-chain. These processed transactions are then bundled together into a single block and submitted back to the main Cardano blockchain. By aggregating transactions and executing them off-chain, Milkomeda C1 is able to increase the speed and efficiency of transactions while simultaneously reducing gas fees.

The design of Milkomeda C1 is heavily focused on security, and it achieves this through a combination of techniques. One such technique is using a zkSNARK-based proof system to ensure that all transactions processed by Milkomeda C1 are valid and free of malicious activity. Additionally, Milkomeda C1 employs a set of smart contracts that enable users to deposit funds and execute transactions in a trustless and decentralized manner.

In terms of functionality, Milkomeda C1 supports a wide range of Ethereum-compatible tokens, making it easy for developers to migrate their dApps and projects from Ethereum to Cardano. This compatibility also extends to various developer tools, such as the Solidity programming language and popular Ethereum-based frameworks like Truffle.

Milkomeda A1 Overview

Milkomeda A1 is an EVM rollup that is designed to integrate with the Algorand blockchain as a Layer 2 scaling solution. Like Milkomeda C1, it is built on the Ethereum Virtual Machine (EVM) and allows non-EVM blockchains to access EVM capabilities. A1 stands for "Algorand 1," indicating its integration with the Algorand blockchain.

A key feature of Milkomeda A1 is its ability to provide faster and cheaper transactions on the Algorand network. It enables Algorand users to transact with Ethereum-based assets and smart contracts in a permissionless and trustless manner. This is achieved by aggregating multiple transactions into a single transaction, thereby reducing gas fees and increasing throughput.

Milkomeda A1's design is similar to other rollup solutions, such as Optimism and Arbitrum. It consists of two parts: the aggregator and the execution engine. The aggregator processes and compresses multiple transactions into one transaction, which is then submitted to the execution engine. The execution engine is responsible for processing the transaction and executing the smart contract code.

One of the unique features of Milkomeda A1 is its use of a modified version of the Algorand consensus algorithm. This modified consensus algorithm is optimized for the requirements of a roll-up solution, allowing for faster and more efficient transaction processing. Additionally, Milkomeda A1 supports both optimistic and zk-rollup modes, giving users flexibility in choosing their preferred transaction type.

Milkomeda Token 

Milkomeda does not have a native token. Instead, it uses wrapped versions of tokens from other blockchain networks to facilitate transactions.

MilkADA and MilkAlgo are the two wrapped tokens used on Milkomeda. MilkADA is a wrapped version of Cardano's native cryptocurrency, ADA. MilkAlgo is a wrapped version of Algorand's native cryptocurrency, ALGO. Both of these tokens are used to settle transactions on Milkomeda.

What is MilkADA?

MilkADA is a wrapped version of the Cardano blockchain's native cryptocurrency, ADA, which allows it to be used as a settlement currency for transactions on the Milkomeda C1 EVM Rollup. This wrapped asset is designed to provide interoperability between the Cardano blockchain and the Ethereum ecosystem, allowing users to leverage the liquidity and features of both networks.

To create MilkADA, users can deposit ADA into a smart contract on the Cardano blockchain, which mints the equivalent amount of MilkADA on the Milkomeda C1 EVM Rollup. This wrapped asset can be used for transactions within the Milkomeda ecosystem.

MilkADA functions similarly to other wrapped assets, such as Wrapped Bitcoin (WBTC) or Wrapped Ether (WETH), in that it is pegged to the value of the underlying asset at a 1:1 ratio. This means that 1 MilkADA is always equivalent to 1 ADA. 

What is MilkAlgo?

MilkAlgo is a wrapped version of the Algorand cryptocurrency (ALGO) used on Milkomeda A1 as a medium of exchange and settlement of transactions. The Milkomeda protocol is designed to allow non-EVM blockchains to access EVM capabilities, and Milkomeda A1 is an EVM Rollup that connects to the Algorand blockchain as an L2.

MilkAlgo is pegged to the value of ALGO on a 1:1 basis, meaning that one MilkAlgo is always equal to one ALGO. The conversion process from ALGO to MilkAlgo is done through a smart contract that locks the ALGO in escrow and issues the equivalent amount of MilkAlgo to the user's wallet. When MilkAlgo is redeemed, the smart contract releases the equivalent amount of ALGO to the user's wallet.

MilkAlgo is an important component of the Milkomeda ecosystem. It enables the seamless integration of Algorand's fast and scalable blockchain technology with the EVM capabilities provided by Milkomeda A1. This allows for greater flexibility and interoperability between different blockchain networks, opening up new possibilities for decentralized finance and other blockchain-based applications.

Milkomeda Bridge Design and Architecture

At the core of Milkomeda's design is the use of EVM rollups, which allow for off-chain execution of smart contracts while retaining the security guarantees of the underlying blockchain. Milkomeda A1 is an EVM Rollup that connects to the Algorand blockchain as an L2, while Milkomeda C1 is an EVM Rollup that connects to the Cardano blockchain as an L2. These rollups leverage the security of the underlying blockchain to ensure that the off-chain computation is trustless and secure.

In terms of architecture, Milkomeda is built using a modular approach, with various components working together to provide a complete Layer 2 scaling solution. The main components include the Rollup Manager, which is responsible for managing the rollup state and processing transactions, and the Data Availability Layer, which ensures that all off-chain data is available to all participants in a trustless manner.

Milkomeda’s blockchain bridge is essential to the Milkomeda protocol, enabling interoperability between different blockchain networks. Milkomeda bridges allow non-EVM blockchains to connect to the Milkomeda EVM Rollups, Milkomeda A1, and Milkomeda C1 as layer-2 solutions. The Milkomeda bridge architecture is designed to ensure the security and integrity of cross-chain transactions while maintaining high efficiency and scalability.

How Does Milkomeda Bridge Work? 

The Milkomeda Bridge is a crucial component of the protocol that facilitates cross-chain asset transfers between connected blockchains.

The Bridge connects to the primary blockchain using a set of smart contracts, which monitor and verify the movements of assets between the connected chains.

When a user initiates a transfer of an asset from one blockchain to another, the Milkomeda Bridge creates a temporary wallet on the target chain and locks the asset in the corresponding wallet on the source chain. The transfer is done in a lock-and-mint methodology, and the asset is only released once the corresponding asset has been created on the target chain.

The bridge then submits a request to the target chain's smart contract to mint a wrapped version of the asset, such as MilkADA or MilkAlgo. This wrapped asset is then credited to the wallet created by the bridge on the target chain.

Once the transaction has been verified and confirmed, the wrapped asset can be freely transferred and utilized on the target chain. If the user wishes to transfer the asset back to the original chain, the process is reversed, and the Bridge creates a temporary wallet on the original chain and mints a wrapped version of the asset, which can then be transferred back to the original chain.

Milkomeda & ChainPort

In addition to Milkomeda’s official bridge for wrapping ADA and ALGO to MilkADA & MilkALGO, Milkomeda collaborates with other bridges in the space. ChainPort is proud to collaborate and integrate Milkomeda C1 as a blockchain.

With ChainPort, token holders from over 14 blockchains can easily bridge tokens to Milkomeda C1. Blockchains supported by ChainPort include BNB, Ethereum, Polygon, Arbitrum, and many others.

ChainPort is proud to support Milkomeda and increase interoperability across blockchains.

How to use Milkomeda

Milkomeda is a cutting-edge protocol that allows interoperability between blockchains by providing an EVM-compatible L2. Interoperability has been one of the major challenges in the blockchain industry, as different blockchains have unique characteristics, such as consensus algorithms, smart contract languages, and network infrastructures. Milkomeda solves this challenge by enabling non-EVM blockchains to access EVM capabilities.

To use Milkomeda for interoperability, first, you need to determine the blockchain network you want to connect to Milkomeda. For instance, if you want to connect Cardano to Milkomeda, you will use Milkomeda C1, while if you want to connect Algorand to Milkomeda, you will use Milkomeda A1. Once you select the appropriate Milkomeda Rollup, you can create a wallet address on the selected blockchain network.

Milkomeda also allows you to create and deploy smart contracts on the EVM Rollup. This means that you can take advantage of the full functionality of the Ethereum Virtual Machine. This includes creating and deploying decentralized applications without worrying about the eth gas fees or scalability limitations of the Ethereum mainnet.

Stablecoins play a critical role in the DeFi ecosystem as they provide a means of exchange without the volatility of cryptocurrencies. Milkomeda A1 and C1, which are EVM rollups that connect to the Algorand and Cardano blockchains as L2s, respectively, provide an excellent platform for stablecoin development and interoperability.

Final Thoughts

Milkomeda is a protocol or L2 for both Cardano and Algorand that offers Ethereum Virtual Machine (EVM) compatibility. Milkomeda A1 and C1 are two of the most popular products offered by the platform. 

Milkomeda A1 is an EVM Rollup built on the Algorand blockchain as an L2 solution. It uses a Plasma-style architecture that provides fast and low-cost transactions, making it an ideal platform for DeFi applications. With Milkomeda A1, developers can leverage the full capabilities of the EVM ecosystem, including Solidity smart contracts, ERC-20 tokens, and other popular DeFi protocols. 

Milkomeda C1 is another EVM Rollup solution that connects to the Cardano blockchain as an L2 solution. Similar to Milkomeda A1, it also utilizes a Plasma-style architecture to provide fast and low-cost transactions. With Milkomeda C1, developers can create and deploy smart contracts on Cardano, opening up new possibilities for DeFi and other blockchain-based applications. 

MilkADA is a wrapped version of the Cardano blockchain's native cryptocurrency, ADA. MilkADA is used as a settlement currency for transactions on the Milkomeda C1 EVM Rollup. This wrapped asset is designed to provide interoperability between the Cardano blockchain and the Ethereum ecosystem, allowing users to leverage the liquidity and features of both networks.

MilkALGO is MilkADA is a wrapped version of the Algorand blockchain's native cryptocurrency, ALGO.  MilkADA is used as a settlement currency for transactions on the Milkomeda C1 EVM Rollup.

Milkomeda is an innovative platform that seems to have a bright future due to its technology and mission to unite blockchains.

back
share via telegramshare via twittershare via whatsappshare via facebook