Disclaimer: The content of this report reflects the author's opinion and is for informational purposes only, and is not intended to recommend buying or selling tokens or using the protocol. Nothing contained in this report constitutes investment advice and should not be construed as investment advice.
1. Entering
1.1. Rise of the multichain environment
In the early days of blockchain technology, Ethereum led the revival of on-chain activities based on Dapps built through smart contracts. However, Ethereum was unable to reliably handle the increasing number of transaction requests due to its limited scalability. As a result, we faced problems of rapidly increasing network congestion and gas fees, and as more users and funds flowed into the blockchain network, the importance of 'scalability', which is the ability of the network to handle many transactions stably, was highlighted.
To solve Ethereum's scalability problems, new monolithic L1 blockchains designed for high throughput and low fees have emerged, such as Solana, Aptos, and Sui. . Additionally, the Ethereum camp attempted to solve the scalability problem through an L2 solution that executes transactions on its own network and records the results in Ethereum.
In addition, in order to build a more flexible and highly scalable network, each function such as consensus, execution, and data availability is separated into independent layers and organically combined. Blockchain architecture has emerged.
For example, through the Cosmos SDK framework provided by Cosmos, you can select and combine the necessary modules to build an app chain specialized for specific purposes such as finance and games. Recently, modular blockchain development frameworks such as Arbitrum Orbit and Optimism OP Stack have emerged in the Ethereum camp, and blockchains with various types of modular architecture are emerging.
In this way, the horizontal expansion of the L1 blockchain and the vertical expansion of the L2, L3, and App Chain occur simultaneously, and today's blockchain ecosystem has entered the multi-chain era where various blockchain networks coexist. This gives developers the freedom to choose the blockchain that best suits their projects, and gives users access to a wider range of services and opportunities than ever before.
1.2. Emergence and development process of blockchain interoperability solutions
The rise of multi-chains has led to the problem of liquidity fragmentation caused by the isolation of liquidity distributed across each blockchain, and users have experienced the inconvenience of having to manage individual accounts and wallets for each chain. Accordingly, the need for blockchain interoperability solutions that help seamlessly exchange assets and data between blockchains has begun to emerge.
One of the earliest cross-chain interoperability solutions was the Bridge protocol, which provides cross-chain asset transfer capabilities. The bridge protocol uses 1) a Lock & Mint method that stores tokens of the sending chain in a contract and issues wrapped tokens on the receiving chain, and 2) burns the asset instead of storing it in the contract. The problem of liquidity fragmentation has been partially resolved by enabling asset transfer between different chains through the Burn & Mint method, which issues new tokens on the receiving and receiving chains.
However, even if the bridge protocol is utilized, users still need to manage individual accounts and wallets for each chain to perform the desired functions, and submit transactions directly to each chain, creating a seamless user experience similar to working in one integrated environment. I am in a situation where I am not enjoying it.
The process that a specific user goes through when purchasing B tokens on the Solana network using A tokens on the Ethereum network is as follows.
1. Access the wallet that manages assets on the Ethereum network
2. Connect wallet of Ethereum network to bridge protocol and initiate A token bridge transaction
3. Access the wallet that manages Solana network assets.
4. Connect your wallet to a DEX that supports trading of A and B tokens
5. Swap bridged A tokens with B tokens
To improve this user experience, Cosmos sends arbitrary messages other than inter-chain asset transfer through IBC (Inter-Blockchain Communication), a Cosmos-based inter-app chain communication standard, and executes a smart contract based on the message on the receiving chain. It also provides a cross-chain messaging function to exchange data. This simplified the process of bridging and swapping assets between multiple app chains, and enabled the emergence of dApps that provide yield farming functions using assets from multiple chains, such as Quasar .
In this way, IBC contributed to improving interoperability in terms of user experience, which existing bridge protocols could not provide. However, IBC mainly focuses on transferring assets and executing simple smart contracts using those assets, and has limitations on arbitrarily complex interactions between chains or handling multiple chain operations within a single transaction. Additionally, because IBC operates only within the Cosmos ecosystem, direct interoperability with blockchains using other development environments such as Ethereum and Solana is still difficult.
Therefore, in order to achieve a true blockchain Internet, that is, cross-chain interoperability that encompasses all blockchains regardless of chain type or structure, a protocol that supports more general and open cross-chain messaging was needed. It started with Axelar .
2. Axelar , a protocol for full interoperability
Excella is a next-generation cross-chain messaging protocol designed to overcome the limitations of existing cross-chain messaging solutions, that is, dependence on a specific ecosystem, and provide a highly flexible cross-chain messaging function.
Just as TCP/IP, the standard communication protocol for computer networking, enabled isolated networks to communicate in a common language, Excella functions as TCP/IP in the secure and programmable blockchain world, allowing different blockchains to communicate. Our goal is to enable the free exchange of verified information and value while maintaining each company's unique characteristics.
As of May 2024, it supports cross-chain messaging with a total of 64 blockchain networks, including Cosmos IBC and EVM (Ethereum Virtual Machine)-based networks such as Ethereum, Polygon, and Avalanche. In the near future, we plan to expand the ecosystem by enabling interoperability with non-EVM-based networks such as Solana, Aptos, Sui, and Stacks. there is.
Excella provides an environment that helps developers conveniently develop and launch interchain dApps that interact with multiple blockchains through a cross-chain development infrastructure. The Excella-based interchain dApp built through this actually performs complex cross-chain interactions, but users can experience cross-chain functionality simply by submitting a single transaction to the dApp on the starting chain. In other words, by abstracting the actions that users had to perform across multiple networks, it provides a high-level user experience as if they were active on a single network.
Excella's technological prowess and potential are proven through collaboration with various projects and companies, and representative examples include:
- RWA-based stablecoin USDY issuer Ondo Finance implemented USDY's cross-chain bridge through Excella, and top RWA projects Centrifuge and Provenance also used Excella for interoperability.
- Major cryptocurrency wallets such as Metamask and Trust Wallet use the Excella-based application Squid for cross-chain swap functions.
- Major DeFi projects such as dYdX and Uniswap strengthen cross-chain functions through partnerships with Excella.
- Gaming project Immutable collaborates with Excella to build cross-chain infrastructure
- Lido Finance, a staking securitization project, expands ETH (stETH) staked through Excella to Cosmos and BNB chains.
- Cross-chain infrastructure cooperation in the Web 3 business conducted by global companies such as JP Morgan , Microsoft , Deutsche Bank , and Mastercard
Next, we will look at the architecture and features of the Excella protocol to better understand how Excella aims to become the standard communication protocol in the blockchain ecosystem.
2.1. protocol architecture
The Excella Protocol has major components such as the Excella Network, Gateway Contract, and API/SDK, and when expressed in a diagram, it has the following structure.
2.1.1. Excella Network, a hub between decentralized networks
Excella builds and operates its own network to decentralize the function of brokering messages and asset bridges between connected blockchains.
The Excella Network was built using the Cosmos SDK, a blockchain construction framework provided by Cosmos, and adopts Delegated Proof of Stake (DPoS) as the consensus algorithm. Users can operate a validator node by depositing $AXL, Excella's native token, and users who do not directly run a validator node can also indirectly participate in network verification by delegating their $AXL to a validator.
- As of May 17th, the date of writing, approximately 130 entities are staking $AXL and running nodes.
- Among these, the top 75 node operators with high staking stakes are selected as validators and participate in the verification of the Excella network.
- The remaining node operators who were not selected as validators participate in propagating the created blocks and receive a small amount of incentives.
Validators monitor the status of blockchain networks connected to the Excela Network and verify cross-chain transactions submitted to the Excella Network. To this end, each validator directly operates the nodes of blockchains connected to the Excela network and verifies the validity of cross-chain transactions by viewing data from each network.
For example, when a specific user requests a cross-chain transaction to transfer an asset from Ethereum to Polygon, Excella's validators go through the following process:
- Verify that the transaction actually occurred through an Ethereum node
- Check if the recipient's address is valid through a polygon node
- Once the transaction is validated, the transaction is recorded and executed on the Excela blockchain.
Additionally, Excella is introducing a Quadratic Voting system in which validation authority increases in proportion to the square root of the deposit amount, rather than linearly increasing in proportion to the token shares deposited by validators for block verification. For example, if a certain validator wants to double his voting power, $AXL The staking size needs to be increased by 4x. This serves to further strengthen the decentralization and fairness of the network by preventing a small number of validators from exercising excessive influence and allowing more participants to have equal authority in decision-making.
2.1.2. Gateway Contract
A gateway contract implemented in the form of a smart contract for each network is distributed to each blockchain connected to the Excela network. This gateway contract performs two functions: 1) delivering events or transactions that occur in each network to the Excella network, and 2) delivering messages or assets delivered from the Excella network to the network to which they are intended to arrive.
In this process, gateway contracts in different blockchain networks follow the following communication rules.
- CGP (Cross-Chain Gateway Protocol): Rules for gateway contracts between networks to recognize each other and exchange information
- CTP (Cross-Chain Transfer Protocol): Rules for transferring assets and data by gateway contracts between networks
Through this, each network can maintain its own unique structure and consensus method while performing interoperability with a high degree of freedom.
The gateway contract is managed by Excella's validators, and in the case of networks where smart contracts exist, it is Multisig, a multi-signature system that requires signatures from multiple parties. Networks such as Bitcoin that do not support smart contracts. has an architecture that controls the malicious behavior of validators through TSS (Threshold Signature Scheme), which divides the secret key into several pieces and distributes them to each validator.
2.1.3. APIs and SDKs
Excella provides API and SDK development tools so that developers who want to develop cross-chain dApps can build interchain applications easily and quickly.
The Excella API is a window for developers to interact with the Excella network, helping them use functions such as asset transfer, message delivery, and transaction status confirmation through simple calls. Developers using the API can use complex cross-chain logic. You can build interchain dApps by utilizing the various functions provided, without having to implement them yourself.
Excella's SDK includes several functions that make the API easier to use, such as a code library that pre-writes the codes needed to call the API, sample code and documentation to help developers understand the use of the library, and JavaScript, Python, Supports various programming languages such as Go.
In this way, by utilizing the API and SDK provided by Excella, developers can easily integrate the functions provided by Excella into their applications without having to directly implement complex cross-chain logic.
2.2. General Message Passing (GMP)
Based on the above architecture, Excela Network supports two types of cross-chain transactions: Cross-Chain Token Transfer transactions and General Message Passing (GMP) transactions.
- Cross-Chain Token Transfer: Similar to the functionality of a traditional bridge, it operates in a lock-and-mint manner by locking up tokens on the origin chain and issuing corresponding tokens in wrapped form on the destination chain.
- GMP (General Message Passing): This is a cross-chain messaging function provided by Excella that goes beyond providing simple asset transfer functions through Excella's gateway protocol and CGP and CTP protocols, and allows unrestricted inter-chain transactions without performing asset bridging. Enables smart contract function calls and state synchronization
For example, if you build an interchain lending protocol using GMP, you can implement loans on other networks by simply tying assets to contracts on each chain that are synchronized, without the need to bridge assets on each chain. In addition, in the process of executing cross-chain transactions, additional convenience functions are provided to users, such as allowing users to pay gas fees with tokens of the starting chain without having to prepare gas fees for each network (including the Excela network). From the user's perspective, the transactions that must occur in each chain can be abstracted and implemented as a single transaction submitted by the user on the chain from which the transaction originates.
2.2.1. Mechanisms and Benefits
The details of how GMP transactions work are best explained through the most common use case: cross-chain swaps. Squid is a representative dapp that supports cross-chain swaps, allowing users to exchange tokens between chains in a single interaction, beyond bridging.
The cross-chain swap process using Excella’s GMP is as follows.
- A user initiates a cross-chain swap on chain A to exchange the a token held on chain A for the b token of another chain, chain B.
- A portion of the assets the user used for the swap is converted into native tokens on each chain as needed to pay gas fees on Chain A and Chain B.
- a Token is swapped from chain A to a stablecoin with full liquidity on each chain.
- Bridge to chain B with the swapped stake coins and a message to swap to b tokens through chain B’s DEX
- After the swap is executed on Chain B’s DEX, users receive B tokens.
As of May 17th, the date of writing, approximately two out of every third of the 1.8 million transactions that occurred in Excella are transactions utilizing the GMP function, and the usage of GMP is gradually increasing through interchain dapps utilizing GMP. is showing.
Based on the above mechanism, GMP can provide users with the following advantages compared to interoperability solutions that adopt a method that includes token bridges in cross-chain transactions.
- Reduce gas costs by allowing direct interaction without sending or burning the contract to utilize the asset of the chain you wish to send.
- Since assets used in contracts on other chains remain in the original chain, it is easy to trace the origin and status of the assets.
As a result, through GMP, users can enjoy 1) a transparent asset utilization environment and 2) a cheap and easy interchain dapp usage experience .
2.3. Hub & Spoke Structure
Methods for connecting multiple networks and providing interoperability include the Point-to-Point method, in which each network is directly connected, and the Hub method, in which each network indirectly communicates with each other through the hub through connection to the hub. There is a & spoke method.
Excella adopts the Hub & Spoke method in which other networks surround the Excella network. This is because it has higher scalability and flexibility compared to the Point-to-Point method.
To add a new network in the Point-to-Point method, you must build a connection infrastructure for all existing connected networks one by one, so as the number of supported networks increases, the infrastructure that must be built when a new network is added increases exponentially. On the other hand, the Hub & Spoke method enables connection to all networks by connecting a new network and a central hub, so it has higher scalability than the Point-to-Point method and makes it easy to modify and update the connection method in detail. .
On the other hand, in terms of security, the Hub & Spoke structure is highly dependent on the central hub, so if a problem occurs in the central hub, there is a risk that the entire network may be paralyzed. However, if a problem occurs in a specific blockchain other than the hub, in the Point-to-Point structure, connections to all chains connected to the network must be blocked, whereas in the Hub & Spoke model, the connection between the problematic blockchain and the hub is blocked. Since the entire network can be protected by blocking, the Hub & Spoke structure cannot necessarily be considered less vulnerable to security than the Point-to-Point structure.
In order to solve the single point of failure problem of the central hub of the Hub & Spoke structure, Excella designed the Excella network, which acts as a hub, as a decentralized network, ensuring high scalability of the Hub & Spoke structure while maintaining decentralization and We are taking a strategy to increase security.
2.4. $AXL Tokenomics
At the center of the Excella network $AXL The token organically connects various entities and elements participating in the network, and has the following functions.
- Governance Voting : $AXL Holders participate in major decisions such as network upgrades and fee policy changes in proportion to their holdings.
- Validator participation : Users participate in the validation of the Excella network by staking $AXL
- Transaction Fee : All cross-chain transactions through Excella are subject to a fee paid in $AXL.
- Validator Incentive : Compensation paid for block creation and verification
For networks connected to Excela that are compatible with IBC, Excela validators can verify transactions simply by running IBC's Light Client. However, if a new network that is not compatible with IBC is added, validators must run a full node of the network to verify transactions, increasing operating costs and burden.
Accordingly, Excella provides a certain amount of $AXL as compensation for validators running additional full nodes whenever the number of compatible Non-IBC networks increases. We introduced a tokenomics model that generates token inflation, and $AXL was created through this. Tokens have a structure where they are paid as additional compensation to validators. Initially, it was designed to cause inflation of 0.75% per network when connecting a new network, and through this, the $AXL token supply, which started with an initial 1 billion, is currently approximately 1.15 billion.
In the long run, this inflation rate $AXL Concerns have been raised that it may have a negative impact on value, and the Excela community is in the process of revising tokenomics by preparing and passing a tokenomics improvement plan . The proposed tokenomics improvements include the following:
- Inflation reduction plan : Inflation due to new network connection is reduced from 0.75% to 0.2%.
- Fee Burning Mechanism : Validator and $AXL A portion of the Excella network transaction fees distributed to delegators are burned, and the burn rate is determined through community governance.
Among these two measures, the inflation reduction plan has been reflected, and Excella's total annual inflation rate has now been reduced to 4.8% (1% base inflation + 0.2% additional inflation for 19 Non-IBC chains), and the fee burning mechanism is not yet implemented. It has not been introduced. If a fee burning mechanism is introduced in the future, it is expected to contribute to reducing the supply of $AXL and stabilizing its value, along with reducing inflation.
3. Excella’s representative application
3.1. Squid
Squid is a cross-chain liquidity router utilizing Excella GMP, which discovers and executes the optimal bridge and swap path for cross-chain swap orders submitted by users. Users pay the entire transaction cost with the starting chain's gas fee tokens, and can easily perform cross-chain swaps with one click. In addition, Squid provides not only swaps for fungible tokens, but also an NFT checkout function that allows users to purchase NFTs from other chains using assets held in a specific network, and provides an API so that other applications can use Squid as above. We provide support so that you can utilize the functions freely.
A typical cross-chain transaction executed on Excella is dependent on the type and state of the interacting network due to structural limitations in that the transaction is executed on the destination chain through the Excella network only after block creation on the origin chain and block completeness have been proven. Accordingly, there is a problem that the entire transaction time can take from as little as 1 minute to as long as close to an hour. To solve this problem, Squid introduced the Boost function, which executes transactions on the arrival chain first through short-term loans provided by Squid, in exchange for the user paying a certain amount of additional fees.
The boost function works by performing a swap transaction on the destination chain before the bridge transaction on the departure chain is finalized, providing the token the user wants to purchase first. Afterwards, when the token transfer transaction sent by the user on the starting chain is finalized, Squid collects the token afterwards and completes the cross-chain transaction. Through this, users can significantly shorten the waiting time during cross-chain transactions and achieve a more comfortable transaction experience.
To date, the number of GMP transactions occurring on Squid is approximately 1 million, accounting for 80% of all GMP transactions occurring on Excella.
3.2. Prime Protocol
Prime Protocol is a DApp that provides cross-chain lending services by utilizing Excella’s GMP function.
The Prime Protocol operates around the Moonbeam network, and each connected network has a smart contract called a Prime Contract deployed. When a user deposits assets into a Prime contract on a specific chain, the contract transmits the deposit information to the Moonbeam Network's Prime Protocol Hub through Excella's GMP. Afterwards, when the user requests a loan, the loan request message is sent to the hub of the Moonbeam network through GMP, processed, and then delivered to the prime contract of the chain where the loan will be executed, using the assets of that chain to issue a loan to the user. It's possible.
Unlike existing DeFi lending protocols that operate only on a specific chain and only recognize the assets of that chain as collateral, Prime Protocol uses the assets of 9 chains as collateral in the same way as above and provides the ability to freely borrow from each chain. We are providing it. Additionally, this process allows users to pay gas fees for all transactions with origin chain tokens, giving the user experience the same as performing lending and borrowing on a single chain.
4. AVM (Axelar Virtual Machine) and Accelar’s technology roadmap
As explained above, GMP has greatly contributed to improving the user experience by providing users with abstracted cross-chain messaging capabilities. However, even if developers utilized the API and SDK provided by the Excela Network, they still had to create and manage smart contracts for each chain, making it difficult to freely program interactions between chains and implement complex cross-chain applications. To overcome these limitations and provide a developer-friendly cross-chain development environment, Excelar introduced the Axelar Virtual Machine (AVM) last March.
AVM is a virtual machine that combines a smart contract execution environment based on CosmWasm and Excella's cross-chain function. By combining a safe and efficient smart contract execution environment with cross-chain interoperability, developers can create a single cross-chain We provide an environment and various tools to build applications more easily.
Below are some of the major services that have recently been launched or will be offered based on AVM:
4.1. Interchain Maestro
Interchain Maestro is a service that uses AVM to help developers more easily develop, deploy, and manage dApps in a cross-chain environment. When developers submit the code for the application they want to distribute to Maestro, Maestro provides a function to automatically modify and distribute it to be compatible with the chain the developer wants to deploy. Afterwards, the operational status of the dApp can be monitored in one place through Maestro, and even if the dapp needs to be upgraded, contracts on all chains supported by the dapp can be automatically updated by modifying the code uploaded to Maestro. .
4.1.1. Interchain Token Service (ITS)
As one of the major components of Maestro, the core functionality currently provided by the Excela Network is the Interchain Token Service (ITS) . ITS is a service that helps developers easily issue and manage tokens across multiple blockchains, allowing them to deploy tokens to all EVM-compatible chains connected to Excella simultaneously with just a few clicks and no code. Additionally, all interchain tokens issued through ITS support cross-chain swaps on the Squid Router, providing high interoperability.
Tokens issued through ITS follow the ERC-20 standard, and when tokens move between chains, Excella uses a burn-and-mint method in which tokens are burned on the origin chain and new tokens of the same amount are minted on the destination chain. It moves freely across the network while maintaining the total amount of tokens constant. In addition, ITS provides developers with a Token Manager function that allows integrated management of tokens existing in multiple chains through one interface.
A representative project utilizing ITS is Frax Finance . Frax Finance integrates ITS with Fraxtal, a layer 2 solution built in-house, enabling developers participating in the Fraxtal ecosystem to issue cross-chain tokens easily and quickly. there is.
In this way, Interchain Maestro supports developers to easily develop and operate cross-chain DApps without having to worry about the details of each chain, reducing the time and cost of development and operation, allowing developers to participate more in the interchain ecosystem. We provide an environment for active participation.
4.2. Interchain Amplifier
Interchain Amplifier is a service that makes it easier to connect new blockchains to the Excella network using AVM.
Amplifier automates the process of deploying the gateway contract, activating the deployed gateway contract, selecting a validator group to participate in verifying the network to be connected, governance proposals, and voting processes, which had to be executed in cooperation with the Excella development team in order for the existing network to be connected to Excella. , It helps network developers easily connect each network to the Excella network without the help of the Excella development team.
Currently, testing is being conducted through a pilot program before the official launch of the feature, and networks such as Stacks, Moonriver, Hedera, and Iron Fish are participating in the pilot program. I'm doing it.
In this way, AVM goes beyond simply providing a smart contract execution environment and functions as a core infrastructure that enables the expansion of the overall Excella ecosystem. Through this, Excella becomes an interchain ecosystem in the true sense of the word, that is, a single blockchain where the boundaries between blockchains disappear. We have plans to evolve into a massive decentralized application platform.
5. Comparison with competing protocols
In the field of interoperability between blockchains based on cross-chain messaging, in addition to Excella, there are other protocols such as LayerZero and Wormhole , and each project implements interoperability between blockchains in its own unique way. and is competing.
Looking at each protocol based on the message verification method, in Layer Zero, cross-chain messages were delivered through two centralized entities, an oracle that delivers data in v1 and a relayer that verifies data, but in v2, a decentralized verification network (DVN) ) has developed into a structure where the application developer selects a validator within the verification network, sets the verification method, and requests verification. The validator who is requested to verify is responsible for verifying the integrity of the message, and does not verify the validity of the content of the message itself, such as the legitimacy of the transaction.
In this way, Layer Zero attempted to improve the centralization problem of the existing version by introducing a decentralized verification network (DVN), but some have recently raised the possibility that some verification nodes within the DVN are controlled by a centralized Ethereum externally owned account (EOA). As concerns are raised about the level of decentralization of the protocol.
Wormhole is building a trust network based on the reputation of 19 verified validators called Guardians. Guardians are responsible for verifying the integrity and validity of messages according to the PoA (Proof-of-Authority) consensus algorithm. Wormhole message verification is characterized by relying on the reputation of a small number of authoritative validators.
Excella employs a method in which approximately 75 validators participate in verifying the integrity and validity of messages under an economic incentive structure. Validators ensure network security through the $AXL they stake and delegate, and their malicious actions lead to the loss of staked assets. Additionally, in Excella, anyone can become a validator by becoming a top staker, ensuring a higher level of decentralization compared to Layer Zero or Wormhole.
Looking at the three projects in terms of scalability, Layer Zero uses the Point-to-Point method, and Excella and Wormhole use the Hub & Spoke method to build a connection structure between networks. In particular, Excella uses AVM to implement complex cross-chain logic. It also has strengths over the two protocols in terms of scalability by simplifying the implementation and providing an environment where each network developer can directly connect the network to Excella.
As such, Excella claims to have an advantage over Layer Zero and Wormhole in key competitive elements of cross-chain messaging protocols, such as message verification method and scalability. However, looking at the number of cross-chain transactions that occurred through each protocol, wormholes had about 1 billion and layer zero had 130 million, while Excella had 1.8 million, which means that the number of transactions that occurred in Excella is significantly lower compared to the other two protocols. This is the situation. However, this can be seen to be largely due to the transaction work of airdrop farmers targeting Wormhole and Layer Zero token airdrops. In fact, Wormhole's token airdrop snapshot is about 1 per 15 minutes, and Layer Zero is about 1 per 10 minutes. As a result, the number of transactions is showing a significant decrease.
At the moment when the token launch of each project has been announced, it can be expected that Excella, which has been showing a steady increase in transactions since early last year, will be able to expand its share in the cross-chain market in the future, but competition in the cross-chain interoperability field is still in its early stages. As such, there is a need to continuously pay attention to the development of layer zero and wormholes. In particular, Wormhole, which provides cross-chain messaging functions based on the blockchain of Move development languages such as Solana, Sui, and Aptos, is recently preparing to expand into the Cosmos ecosystem, and we are continuously observing the competitive landscape between Wormhole and Excela. You need to do it.
6. Conclusion
At a time when issues of liquidity fragmentation and poor user experience are emerging in a multi-chain environment, the development of a general-purpose cross-chain infrastructure that enables free interaction between blockchains is emerging as an essential task for the popularization of blockchain.
Accordingly, Excella provides cross-chain interoperability with a high degree of freedom, supporting not only asset transfer but also arbitrary information transfer and smart contract function calls from other chains through GMP, and connects other blockchains using its own decentralized network as a hub. We ensure scalability and efficiency through the Hub & Spoke model.
In addition, Excella introduced AVM to provide an environment where network developers can easily connect their networks to the Excella network without intervention from the Excella network team, and to provide an interconnection system that allows cross-chain logic to be freely implemented in an environment where multiple networks are integrated. We want to provide a chain dapp development environment.
If interchain DApps using Excella actively emerge and begin to become mainstream services, users will be able to naturally move assets between multiple blockchains and experience various services as if they were using a single blockchain. This is expected to not only greatly improve the convenience of on-chain activities for existing users, but also significantly lower the entry barrier for new users unfamiliar with blockchain technology.
<Reference materials>
- Axelar
- Axelar blog
- Axelar docs
- Axel Scan
- Axelar ushers in the crypto super app
- Honk if you like Hub & Spoke
- Adjusting Axelar Network Incentives
- Q4 2023 Axelar Report
- Q1 2024 Axelar Report
- Uniswap's Bridge Assessment Report
- Squid
- Squid Checkout
- Squid Docs
- Prime Protocol
- Axelar - The dark horse of the interchain race
- Axelar vs Wormhole
- Wormhole Scan
- LayerZero Scan
