In 2022, former Algorand developers launched Axelar — a new project that has the potential to revolutionize the Web 3.0 space. It is a universal overlay network that connects all blockchain ecosystems, applications, assets, and users to achieve true interoperability. Although the project was launched in 2022 and is currently in development, Axelar already allows decentralized apps to exchange assets between supported blockchains momentarily. Let's take a closer look at the Axelar network and explore the idea of cross-communication in Web 3.0 technologies.
The Basics of the Axelar Network
Axelar network provides a uniform solution to cross-chain communication that meets the needs of both platform developers and app builders. The former benefit from the seamless integration process, while the latter make use of one simple protocol and API to access global liquidity and communicate with the entire ecosystem.
Axelar consists of three main components:
- A Decentralized Network of Validators
Similar to other cryptocurrency projects, Axelar's core component is underlying decentralized protocols. Ecosystem validators run the nodes and maintain the system's functioning by confirming transactions. The network uses a Delegated Proof-of-Stake (DPoS) model similar to Cosmos Hub, allowing participants to earn additional income on staking.
- Secure Gateway Smart Contracts
Smart contracts make the interconnected blockchain future a reality. Validators monitor gateways for incoming transactions, validate them and send a request to the destination chain's gateway to execute the cross-chain transaction.
- Software Development Kits (SDKs) and APIs
A set of developer tools makes creating a dApp much simpler and faster. There is no need to roll out your own proprietary cross-chain protocols underneath or upgrade the app each time a new bridge between blockchains is needed. The Axelar network provides a uniform code base and governance structure instead.
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Blockchains supported by the Axelar Network |
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Circle |
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Tether |
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Ethereum |
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Avalanche |
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BNB Chain |
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Cosmos |
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Crescent |
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Fantom |
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Juno |
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Cross-Chain Communication in the Axelar Network
The key benefit of the Axelar network is its cross-chain communication approach. For the Web 3.0 technologies to be mass adopted, the user and developer experiences must be smooth, fast, and easy. Axelar plans to achieve such results via four main features.
- "Plug-and-Play" Integration
As indicated in its name, integrating with other projects via Axelar doesn't require special skills or equipment. There is no need to develop the "custom language" for cross-chain support. It all comes down to several clicks, thanks to Axelar smart protocols.
- Cross-Chain Routing
In order to efficiently communicate with other blockchains, Axelar discovers the network addresses and routing paths using BGP and other routing protocols.
- Upgradability Support
There is no need for developers to track each change in the integrated blockchains — the Axelar network will automatically recognize and support updates of other ecosystems with minimal effort.
- Uniform App Language
Axelar aims for a simple protocol for communicating with other applications regardless of the chain. Thus, it must support simple calls, such as HTTP/HTTPS protocols which allow users and browsers to communicate with any web server. Moreover, the developers should not be required to make any changes in the software with the growth of users.
The Axelar Ecosystem: Key Services
Although the project was only recently launched, it has a clear-cut roadmap that indicates the company's immediate and long-term plans. Currently, Axelar is in the process of onboarding more assets and chains, supporting new cross-chain applications, and making security improvements. Moreover, the company collaborates with other cryptocurrency projects to achieve a convenient and effortless user experience.
There are currently three websites Axelar community members will be able to use to track the network activities, including transactions, validators, and addresses: Axelarscan, Atomscan, and Mintscan. In addition, although the project's native coin AXL has not yet been launched, Axelar has already entered into partnerships with Keplr and Coinlist wallets.
The Axelar team has also already introduced a Satellite app to facilitate crypto-asset transfers from one chain to another. The entire process amounts to several minutes: you indicate the source and destination chains and enter the address and the transfer amount. The app is currently in the beta-test stage.
And last but not least — Axelar Sea, a first cross-chain NFT bridge and marketplace. Buyers, sellers, and creators of non-fungible tokens benefit from one-click interactions with multiple blockchains. The public testnet of Alexar Sea has been proved successful: more than 420 thousand NFT tokens have already been minted.
Partnerships, Sponsors, Investors of the Axelar Network
Some investors might consider start-up crypto projects too risky, however revolutionary they might be. There are numerous scams in the market that deter new users and slow-down mass adoption. Thus, it is vital to do background research before investing money in any project.
One of the key criteria to consider is partnerships and sponsors. The Axelar project has already managed to attract world-famous companies as investors, including Coinbase, Binance, Lemniscap, MorningStar, and DragonFly. Furthermore, the network has entered into partnerships with top crypto projects, constantly increasing the number of supported blockchains.
The Axelar Network: Borderless Future of Crypto
There is no denying that the Axelar project shows much promise. The idea of a scalable network that seamlessly interacts with other chains is not new, but Axelar has already taken some concrete steps to turn this concept into reality. Crypto holders can already use the Satellite app for cross-chain asset transfers, while dApps developers can benefit from "plug-and-play" integration.
As for the long-awaited Axelar token, its launch is currently scheduled for 14th September 2022. Since the coin will run on the Proof-of-Stake algorithm, it will allow participants to earn passive income on staking AXL with no special skills or equipment. Thus, if you are interested in a promising and potentially rewarding crypto project—there’s some time to consider becoming an AXL validator on Everstake.
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