Axelar - the first plug-and-play cross-chain platform (EN)
With the development of the DeFi space, the need for cross-chain solutions that could provide interoperability between different blockchains is becoming more and more acute. However, the existing solutions leave much to be desired.
To date, all existing cross-chains can be attributed to one of three categories:
Centralized systems that can provide high scalability and easy integration of assets and other platforms, but at the same time have serious security problems. In addition, centralized systems cannot ensure the operation of DeFi, as they do not meet the requirements for transparency, open governance and security.
Decentralized cross-chain bridges based on smart contracts, providing for minting of so-called wrapped assets in one blockchain and locking of collateral in the original blockchain. Despite all the ingenuity of such a solution, however, their economic efficiency is limited due to the need to provide 100% collateral for each transaction and ensure the work of validators and oracles. In addition, such solutions are difficult and inefficient to update when one of the blockchains is upgraded.
Interoperability hubs. Examples of such solutions are Polkadot and Cosmos. they provide interoperability between side chains in their ecosystem, subordinate to the central blockchain. At the same time, each sidechain is responsible for communication with “its own'' third-party blockchain. The main drawback of this approach is the complexity of integrating new projects, since each time you need to develop a new blockchain that can "talk" simultaneously to the central and third-party chain.
However, Axelar is a new generation cross-chain solution that lacks the disadvantages of the aforementioned approaches. Axelar provides plug-and-play integration of new blockchains through a system of decentralized protocols similar to FTP and HTTP for the “classic” Internet. In addition, Axelar Network validators will constantly receive data on the state of connected blockchains. As a result, Axela will de facto be a cross-chain decentralized oracle.
Site: https://axelar.network/team
Twitter: https://twitter.com/axelarcore
Telegram: https://t.me/axelarcommunity
Discord: https://discord.com/invite/aRZ3Ra6f7D