Milkomeda Protocol

Author: Donald Date: 20 May 2023

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The Milkomeda protocol is a pioneering cross-chain DApp creation platform introducing innovative technology that aims to deliver Ethereum Virtual Machine (EVM) capabilities to non-EVM blockchains such as Solana, Cardano and Algorand. Leveraging Ethereum’s core system’s capabilities, the protocol seeks to provide developers and users with access to features from both blockchain ecosystems, potentially increasing the variety of decentralized applications on Solana, Cardano and Algorand, and unifying the user experience within these blockchain ecosystems.

In Brief

Milkomeda protocol enables Cardano users to access Ethereum smart contracts directly.
Allows Solidity developers to develop for non-EVM ecosystems like Cardano and Algorand
Connects platforms like Cardano and Algorand to EVM contracts and provides staking rewards.
Enhances cross-chain interoperability with blockchain bridges and wrapped smart contracts.
Inherits key elements from EVM-based ecosystems and plans to implement future innovations.
Milkomeda C1 EVM Sidechain and Milkomeda A1 Rollup are layer 2 solutions that bring EVM capabilities to Cardano and Algorand ecosystems, respectively.

Milkomeda Benefits

Milkomeda is a smart contract-enabled sidechain protocol that offers several benefits to its users. Sidechains are separate blockchains that operate alongside primary blockchains and are designed to allow for the transfer of assets between the two chains. If you would like to learn more about sidechains, you can read this informative article. The benefits of Milkomeda’s sidechain protocol include:

Connecting platforms like Cardano and Algorand to Ethereum Virtual Machine (EVM) contracts
Facilitating staking rewards for all EVM users, including smart contract developers
Automatic payment of staking rewards every five days for Cardano products built on the Milkomeda platform

In addition to these benefits, the Milkomeda protocol enhances the utility of Cardano tokens for holders by enabling the exclusive use of ADA for applications, rather than Ethereum’s native token, Ether (ETH). This development is a significant step forward in expanding Cardano’s usefulness and promoting greater collaboration and interoperability within the blockchain ecosystem.

Cross-Chain Interoperability

Milkomeda, an L2 protocol developed by dcSpark, aims to enhance cross-chain interoperability by establishing blockchain bridges between Cardano and other prominent layer 1 networks such as Solana and Algorand. These bridges facilitate the transfer of assets between different blockchain networks, fostering a more interconnected and accessible ecosystem. Layer 1 blockchains refer to the foundational infrastructure of a blockchain network, responsible for maintaining the core protocol, consensus mechanism, and transaction processing. Some well-known Layer 1 chains are Bitcoin, Ethereum, Cardano etc.

Focusing on non-EVM projects, Milkomeda seeks to accelerate their mass adoption by providing EVM-compatible sidechains. By leveraging sidechain technology and introducing wrapped smart contracts, the protocol allows developers to create dApps using familiar programming languages and tools, streamlining the onboarding process. This innovation also enables users to interact with smart contracts on various sidechains without needing to switch wallets or acquire extensive knowledge of the underlying technology.

The wrapped smart contracts function lets applications or users easily transfer smart contracts from one blockchain to another, making them usable for Cardano users. This means people can smoothly work with smart contracts from different blockchains, even if they’re not written in Cardano’s language, Plutus. Wrapped smart contracts also need less code for cross-chain applications, which means fewer security risks and quicker development times. In summary, Milkomeda’s approach encourages smooth interactions between different blockchains and supports growth across multiple platforms.

Cross-Chain Smart Contract Usage

In their official documentation website, Milkomeda’s team provides the following statement in terms of interoperability between different blockchains through Wrapped Smart Contracts.

“Thanks to our new innovation called wrapped smart contracts, it will be possible for users on the Cardano mainnet to call and use contracts on the sidechain without having to leave mainnet at all. Users will submit a single Cardano transaction with the data and assets required to interact with the sidechain dApp and the sidechain bridge layer takes care of the rest. The assets/data are transferred over to the sidechain, the requested action is executed on the target dApp, and the results are deposited back to the user’s wallet in the end.”

Here’s an in-depth analysis of this statement:

Milkomeda’s innovation, Wrapped Smart Contracts, provides a mirroring system that simulates Ethereum smart contracts on the Cardano sidechain. This replication enables users to interact with the reflected contract as if they were directly engaging with the original Ethereum contract.

An integral component of this system is the Sidechain Bridge Layer, a sophisticated network of smart contracts or nodes. Its primary function is to interpret the data from the Cardano transaction and generate a corresponding transaction on the Ethereum sidechain, effectively serving as a bilingual mediator between the two disparate blockchain languages.

Following this, the execution of the requested action takes place on the Ethereum sidechain. The Sidechain Bridge Layer facilitates the transfer of assets and data to the Ethereum sidechain, where the original Ethereum smart contract executes the action.

The final stage in this process involves the return of results. Depending on the nature of the contract’s function, the results, which could be in the form of data or assets, are then transferred back to the user’s wallet on the Cardano mainnet via the Sidechain Bridge Layer.

To provide a more tangible example, consider a scenario where a developer has coded a smart contract using Solidity and deployed it on the Ethereum Blockchain. As it stands, this smart contract cannot be accessed from Milkomeda’s sidechain. To rectify this, the developer would need to replicate the code onto one of the Milkomeda’s sidechains, thus making it accessible for other chain users supported by Milkomeda. This process of replication is what Milkomeda refers to as a Wrapped Smart Contract.

Disclaimer: The preceding interpretation, while providing a comprehensive breakdown of the information released by Milkomeda, is largely based on the author’s understanding and perspective. It offers an insightful glimpse into the potential future of cross-chain interactions and the enhancements they could bring to the blockchain ecosystem’s functionality and user-friendliness. However, it’s crucial to note that this analysis may not be entirely accurate, as it is subject to the author’s interpretation of the available data. As such, readers are encouraged to review the original source material and engage with additional resources to ensure a well-rounded understanding.

If you would like to learn more about wrapped smart contracts, check out this article.

Key Features and Future Innovations

Milkomeda aims to provide non-EVM ecosystems with the ability to inherit key elements, such as rollups and Solidity support, from EVM-based ecosystems. This technology allows developers to access all of the tooling from the EVM ecosystem, making building, deploying, debugging, and auditing projects work the same as in Ethereum. The ability for developers to port projects from Ethereum will significantly broaden the selection of dApps available on supported L1 blockchains.

Security consistency across deployments ensures that multi-chain deployed code has the same security properties, eliminating the need for individual audits per chain. Future innovations in zero-knowledge technology will be implementable as L3+ solutions on top of Milkomeda, empowering startups to build on chains like Cardano, Algorand, and Solana while tapping into the talent and resources of the largest community for smart contracts (Solidity).

Milkomeda touts several critical features in their blockchain ecosystem, including scalability, security, user experience, interoperability, portability, and developer experience. The platform has been designed to support hundreds of transactions per second, ensuring swift operations without compromising long-term decentralization. The protocol capitalizes on the power of rollups across all chains and partners with various wallets to facilitate a frictionless user experience.

In terms of security, which is a paramount concern in any digital protocol, Milkomeda has taken robust measures. According to their official website, the platform has undergone rigorous auditing processes by three security firms: ArbitraryExecution, Certik, and Certora. These firms specialize in providing security audits for smart contracts and monitoring Web3 protocols, thereby enhancing the reliability and security of the ecosystem. By incorporating these audits, Milkomeda demonstrates a strong commitment to ensuring the safety of its users and the integrity of its platform.

Developers and end-users can get started with Milkomeda by following comprehensive guides provided for Cardano and Algorand, which offer valuable context on the underlying technology, benefits, and processes that enable the Milkomeda C1 EVM Sidechain and the Milkomeda A1 Rollup to operate.

The Milkomeda C1 EVM Sidechain is a layer 2 solution that brings EVM capabilities to Cardano. This solution exposes the Cardano ecosystem and its users to the hundreds of thousands of developers writing in Solidity, which is considered the world’s most popular smart contracting language. The sidechain uses MilkADA as its base asset for paying fees and gas, which can be obtained by converting ADA on the Milkomeda Asset Bridge.

Similarly, the Milkomeda A1 Rollup is another layer 2 solution that brings EVM capabilities to Algorand ecosystem. The rollup uses MilkALGO as its base asset for paying fees and gas, which can be obtained by converting ALGO on the Milkomeda Asset Bridge.

Rollups refer to a method that allows to process transactions on a separate, more efficient blockchain (referred to as Layer 2) and then transfer the transaction data back to the primary blockchain (Layer 1 or mainnet) at a reduced cost. As a result, users can take advantage of the enhanced speed and affordability of the rollup while still enjoying the security provided by the larger blockchain.

Conclusion

In conclusion, the Milkomeda network’s innovative approach to cross-chain interoperability and access to EVM smart contracts has the potential to reshape the blockchain industry. By leveraging the strengths of the Ethereum ecosystem and integrating them into non-EVM platforms like Cardano. Milkomeda is fostering collaboration, expanding the range of available dApps, and unlocking new opportunities for developers and users alike. As blockchain technology continues to evolve, initiatives like Milkomeda will play an essential role in driving innovation and promoting a more interconnected and accessible ecosystem.

Additional information

Relevant Links: Official Milkomeda Website Official Milkomeda Twitter Account Official Milkomeda Medium Account Official Milkomeda Github Account