Binance Research recently published a report on Web3 interoperabilityReport. The report covers multiple key points and demonstrates Axelar’s ​​leadership in the cross-chain space.

Basic introduction to Axelar

Axelar is a proof-of-stake (PoS) network developed based on the Cosmos SDK. Axelar serves as the communication layer, allowing DApps to interact between the EVM and the Cosmos ecosystem. Axelar supports token transfers, smart contract calls, and general messaging, all overseen by a network of validators. These validators operate nodes to monitor network status, verify transactions, and manage cross-chain communications.

Since 2023, Axelar has achieved rapid and stable growth, thanks to the launch of the General Messaging (GMP) function, which supports complex cross-chain function calls and state synchronization. The introduction of GMP improves Axelars interoperability and promotes its increased usage.

Axelar also has many enterprise partners and recently partnered with Microsoft, marking its successful entry into the Azure (Microsoft cloud computing) market. This partnership will allow developers to deliver advanced hybrid blockchain solutions using tools such as the AxelarJS SDK and GMP. Given the widespread use of Azure around the world, this partnership could provide a significant boost to Axelar’s ​​growth and expansion.

Practical use cases

Squid

Squid serves as the cross-chain liquidity router in the Axelar network, connecting decentralized trading platforms and enabling token transactions between interconnected blockchains. Squid works by deploying contracts on each chain in the Axelar network. When users transact on the source chain via Squid, the Axelar infrastructure is responsible for managing cross-chain communication with the target chain. In addition, Squid has integrated with major wallet providers such as Metamask, Trust Wallet and Blockchain.com, making Axelar the only communication protocol used by these platforms.

Junkyard

Junkyard is a cross-chain NFT lottery platform that leverages Axelar for its core functionality, providing users with the opportunity to clear out unwanted NFTs and fish to win valuable NFTs through a lottery-style game. Junkyard’s operating framework consists of three key components:

1. Junkyard Contract (Ethereum): Ethereum contract used to lock NFTs. When a user discards an NFT, the contract securely stores the NFT and copies the data to the Polygon contract via Axelar.

2. Junkyard Contract (Polygon): used to maintain the Polygon contract that locks NFT data. During fishing, where a user chooses to claim a specific NFT, Axelar enables communication between Ethereum and Polygon contracts by synchronizing network state. The Ethereum contract is responsible for delivering the NFT, while the Polygon contract is responsible for updating the data records accordingly.

3. Chainlink is used to “fish” participants into randomly selecting NFTs. This step is achieved through Axelar’s ​​cross-chain communication, allowing users to interact between Ethereum and Polygon.

By integrating Axelar, Junkyard is able to operate in an efficient manner within Polygons low-cost environment. This setup enables users to enjoy a simplified cross-chain experience without the hassle of encapsulating NFTs or browsing across multiple networks. Axela’s functionality and communication protocols provide Junkyard with a solution for cross-chain interoperability.

Summary of the highlights of Binance Research Web3 Interoperability Report

A recent report on Web3 interoperability published by Binance Research details Axelar’s ​​leadership in the cross-chain space. Here are the key takeaways from the report:

Axelar is one of the fastest growing cross-chain networks

Other networks have seen temporary surges, fueled by airdrop anticipation and other activity. Axelar, on the other hand, has achieved rapid and steady growth. According to Binance data, Axelar’s ​​30-day trading volume is now twice that of Wormhole and nearly 8 times that of Chainlink CCIP.

Axelar connects the most chains

Binance counts a total of 60 chains supported by the cross-chain network. Axelar supports 53 of these chains, more than any network Binance has reviewed.

Axelar partners with top projects in vertical fields

Ondo Finance: An on-chain U.S. Treasury bond issuer. Ondo Finance uses GMP for Ondo bridging to promote the unification of USDY liquidity on the chain.

Microsoft supports Axelars entry into Azure, Microsofts public cloud service: Given the widespread use of Azure around the world, this partnership will facilitate Axelars growth and expansion.

Major wallet providers such as MetaMask, Trust Wallet and Blockchain.com have integrated Squid, positioning Axelar as the only messaging protocol adopted by these platforms.

JPMorgan Chase’s crypto asset service platform (Onyx), Mastercard, dYdX and other companies are also partners of Axelar.

Comparative analysis

Axelar works with more top projects than other networks reviewed by Binance.

According to Binance data, Axelar’s ​​FDV ($800,000) is a better metric than market capitalization ($300,000) compared to Wormhole and LayerZero’s book valuation. By any measure, Axelar is undervalued.

Axelar’s ​​security and cross-chain metrics

With 75 validators, Axelar is highly decentralized. Axelar’s ​​PoS system includes features such as quadratic voting and key transposition, giving it significant advantages in terms of security. In addition, Axelar is leading the development of cross-chain indicators, developing a set of cross-chain indicators and analysis methods as early as the second quarter of 2023.

Summarize

Axelar has a proven track record and leadership in Web3 interoperability. Its rapid growth, support for many chains, cooperation with top projects, and high security make it a cross-chain network that has attracted much attention.

Axelar connects more than 50 blockchains through a secure, programmable network, working to become the Internet infrastructure for the next super application. Both regular users and developers can easily interact with any asset, and developers can engage in cross-chain blockchain development powered by a simple API and a permissionless ecosystem of tools and service providers. provide support. Axelar provides scalable cross-chain solutions with partners including Binance, Coinbase, Dragonfly, Galaxy, and Polychain.

To learn more about Axelar, visitOfficial websiteandDeveloper documentation,also mayRead the full reportfor more detailed information.