Sergei Gorbunov, co-founder and CEO of Axelar Network, said cross-chain communication between blockchains is about more than just transferring data from point A to point B, but how it can connect applications and users to enable and reduce Web3 gas fees. Cointelegraph Business Editor Sam Burgee on September 28 at Converge22 in San Francisco.
As the cryptocurrency industry has evolved over the past few years, the interoperability of blockchain has led to increased demand, attracting venture capital and welcoming players like Axelar, which achieved Unicorn status in February. The idea is that cross- and multi-chain features should define the coding space, said Gorbunov, which was founded in 2020. “The idea is not only to talk about how to connect A to B, but also how to connect many to many, Right? How to connect everyone to everyone else. This applies to apps and users.
Interoperability is a buzzword in the crypto industry that refers to the ability of multiple blockchains to interact, exchange digital assets and data and work together, thereby sharing economic activity. As an infrastructure, interoperability is essential for wider use of the technology, explained Gorbunov:
“We need the user to be able to make a single call on one chain and have that transaction actually happen on other chains without having to go get the token for that chain, pay for the gas, execute themselves and move it back and forth.”
The CEO of Axelar emphasized that in addition to a better user experience, interoperability also means better financial results, as interoperable chains can have a single 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 capabilities, and that’s what allows us to cross-chain, which helps create these simple interfaces.”
RELATED: Division Director of Product: USDC Network Expansion Is Part of ‘Multi-Chain’ Concept
At Converge22, Axelar was announced as one of the networks to merge 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 create a seamless experience of sending and transacting USDC across blockchains.
Earlier this week, Axelar announced a collaboration with Mysten Labs, the infrastructure company behind the Sui blockchain, to enable cross-chain communication for developers through shared messages and increase the potential of the so-called “Super DApp.”