Cross-chain communication between blockchains is not just about moving data from point A to point B, but how it can connect applications and users for improved experiences and lower gas costs in Web3, pointed out Sergey Gorbunov, co-founder and CEO of Axelar Network, speaking to Cointelegraph editor Sam Bourgi on September 28 at Converge22 in San Francisco.
As the crypto industry has grown in recent years, blockchain interoperability has seen a surge in demand, attracting venture capital and welcoming players, such as Axelar, which has reached 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 crypto 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 with everyone. And that includes applications and users “, he explained.
Interoperability is a buzzword in the crypto 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 wider adoption of the technology, as Gorbunov explained:
“We need a capability for the user to execute a call on one chain, and that transaction actually happens on other chains without them having to go get a native token from that chain, pay gasoline, to run and move it back and forth.”
Axelar CEO highlighted that beyond better experiences for users, interoperability also means higher economic outcomes, as interoperable chains can have unified liquidity and therefore 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 the cross-chain allows us to do, to help create those simpler experiences.”
Related: Circle Product VP: USDC Chain Expansion Part of ‘Multi-Channel’ Vision
At Converge22, Axelar was announced as one of the networks set to integrate 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 on blockchains.
Earlier this week, Axelar unveiled a partnership with Mysten Labs, the infrastructure company behind the Sui blockchain, to provide cross-chain communication to developers via General Message Passing and advance the prospect of a self – saying “great DApp”.
Writer and editor Sam Bourgi contributed to this story.