Research Summary
The report discusses Axelar, a Proof-of-Stake network developed using the Cosmos SDK, designed to act as a communication layer between the Ethereum Virtual Machine and Cosmos. The network aims to address fragmentation and improve user experiences in blockchain ecosystems by enabling cross-chain applications and asset transfers.
Key Takeaways
Axelar’s Role in Blockchain Interoperability
- Universal Overlaying Network: Axelar is designed to act as a universal overlaying network, connecting all blockchain ecosystems, assets, and users. It allows developers to build on the best blockchain network for their specific use case.
- Empowering Developers: Axelar focuses on empowering developers to develop cross-chain applications more efficiently. It supports asset transfers, composability of applications, and generalized messages passing across any blockchain ecosystem through protocols and APIs.
Axelar’s Network Components
- Decentralized Network: At its core, Axelar is a decentralized network run by a dynamic and permissionless set of validators powering cross-chain interoperability requests.
- Gateway Smart Contracts: All blockchains connected to Axelar have gateway smart contracts, which validators monitor for incoming transactions.
- APIs and Developer Tools: Axelar provides tools and libraries that allow developers to access the network using a few lines of code and add “universal interoperability” to their dApps and networks.
Advantages of Axelar’s General Message Passing (GMP)
- Cost-Efficiency: GMP is more efficient as it moves function calls and data, rather than minting wrapped assets, leading to cheaper gas costs.
- Minimizing Fragmentation: With GMP, assets remain on a single chain, making tracking their state and provenance easier.
- One-Click User Experiences: GMP allows for an entire transaction to be folded into a single interaction, enhancing user experience.
Axelar’s Network Features
- Chain Agnostic: Axelar’s network is chain agnostic, designed to achieve universal interoperability, and is extremely easy to implement.
- SDK: The Axelar SDK allows developers easy access to the network and composability across the unified blockchain networks supported through application-layer protocols and APIs.
Actionable Insights
- Explore Axelar’s Potential: Given Axelar’s focus on addressing fragmentation and improving user experiences in blockchain ecosystems, businesses and developers in the blockchain space should explore the potential benefits of integrating Axelar into their operations.
- Consider the Benefits of Cross-Chain Applications: Developers should consider the benefits of developing cross-chain applications using Axelar, which could lead to more efficient development processes and improved user experiences.
- Assess the Impact of Axelar’s GMP: Stakeholders should assess the potential impact of Axelar’s General Message Passing (GMP) capability on cost-efficiency, fragmentation minimization, and user experience enhancement in blockchain transactions.
