How to create a Cardano Sidechain (layer2)

Hi Guys,

I need help with a project proposal, but I think this topic could be interesting for many developers and architects.

Does somebody know how to start to build a private Cardano network or where I can find some tutorials?

The idea would be to build a sidechain as layer two, which utilizes the token of the mainnet as the native coin.

Does the idea have sense? Is it possible? Any suggestion?

Many thanks,

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To build a private network for Cardano, you need a Cardano SL; a collection of binaries that constitute the backend and the election based wallet called “Daedalus”


You can create a fungible token and boila! You have an L2 on Cardano. will help you with that

That’s incorrect. You’d need to implement some process or protocol using that token and/or the blockchain itself (e.g. transaction metadata) before you could say you had a Level 2 on Cardano.


Hi @COSDpool Can you suggest any tutorials?

Well that is true although can we say that having your own token is the start?

No, because let’s say we wanted to build a system entirely on transaction metadata… i.e. the unit of information or value is included in a native ada transaction. You could build a Cardano Level 2 system that way without creating any tokens.

With the upcoming hardfork it’ll be possible to include even more information inline with transactions so these types of systems will become even more feasible.

No, I don’t have any current examples of this idea but some colleagues & I last year discussed building a publishing Level 2 system on Cardano where most of the P2P market data would be encoded in the transactions themselves. Some types of native tokens would probably have been desirable for this, but not required. :face_with_monocle:

yes, two :nerd_face: