A wrapped-smart-contract sidechain protocol that will open the door for interoperability between layer 1 blockchains by, initially, connecting the Cardano and Ethereum blockchains. Milkomeda is being designed to connect all blockchains that don’t currently support the EVM to the EVM. This will allow the use of smart contracts written in solidity -and, thus, dApps deployed using solidity smart contracts- by users on the Cardano blockchain.
The Milkomeda sidechain, called M1, will use ADA, specifically wADA (wrapped ADA), as its native currency, and will select its initial validators from trusted stake pool operators on the Cardano blockchain as well as other trusted entities within the ecosystem. These validators will initially number 32, with DAO voting deciding to increase or decrease that number over time. Validators will produce sidechain blocks and run the sidechain bridge that facilitates the moving of assets and the use of wrapped smart contracts.
User will submits their transaction on the Cardano main chain and the sidechain bridge layer will take over and execute everything on the sidechain, i.e. on the dapp the transaction was destined for, and then deposit any results into the originating wallet on the Cardano mainnet. This is done seamlessly and the user didn’t even know any of the above took place; as far as they’re concerned they interacted directly with the dApp on the mainnet.
Whilst the first sidechain, M1, to be powered by the Milkomeda protocol will be deployed for Cardano, dcSpark are building a generalized sidechain protocol that is owned by its users and can deploy new side chains that target other smart contract languages.
M1 and other sidechains will be governed by the Milkomeda DAO, which exists on the Cardano mainnet, and where Cardano users will be given total control, deciding: the parameters of the sidechain, the supporting validator nodes, the addition of new sidechains, which pool the ADA wrapped in the sidechain is delegated to, what other tokens can be registered for use on the sidechain, and much more!
Each wrapped contract on the M1 sidechain must be added to the wrapped interface registry. Adding a smart contract to this registry requires proposing it to the DAO, it successful passing a vote, being audited, and then being review by developers to ensure that it is properly deployed.