Communication between blockchains is more than just moving data from point A to B, but can connect applications and users to improve experiences and reduce gas rates on Web3, explained Sergey Gorbunov, co-founder and CEO of Axelar Network, in a interview with Cointelegraph business editor Sam Bourgi on Sept. 28 at Converge22 in San Francisco.
As the cryptocurrency industry has developed in recent years, blockchain interoperability has seen increased demand, attracting venture capital and welcoming players, such as Axelar, which achieved unicorn status in February. According to Gorbunov, the company, founded in 2020, started with the premise that cross-chain and multi-chain capabilities would come to define the cryptocurrency space. “The idea is not just to talk about how to connect A to B, but how to connect many to many, right? How to connect everyone to everyone. And that includes applications and that includes users,” he explained.
Interoperability is a buzzword in the cryptocurrency industry that refers to the ability of many blockchains to communicate, share digital assets and data, and work together, thereby sharing economic activity.. As an infrastructure, interoperability is crucial for further technology adoption, as Gorbunov explained:
“We need the ability for the user to execute an order on one chain, and that transaction actually takes place on other chains without them having to go and get a token native to that chain, pay gas, execute, and move it back and forth. other”.
The CEO of Axelar highlighted that, Beyond better experiences for users, interoperability also means higher economic results, as interoperable chains can have unified liquidity and thus spend less on gas fees for transactions.. “Our Web2 experience is much simpler, and we need to get to the same level in Web3 with simpler experiences, and that’s what cross-chain enables us to do, help build those simpler experiences.”
It was announced at Converge22 that Axelar is one of the networks to be integrated with Circle, the fintech company behind USD Coin (USDC) and Euro Coin (EUROC). Circle is launching a new cross-chain transfer protocol to help developers build frictionless experiences for sending and transacting USDC natively across blockchains.
Earlier this week, Axelar revealed a partnership with Mysten Labs, the infrastructure company behind the Sui blockchain, to offer cross-chain communication for developers through General Message Passing and advance the prospect of a so-called “super DApp.” .
Writer and editor Sam Bourgi contributed to this story.
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