Polkadot (DOT) Evolves to Aim for the Crypto Holy Grail of Interoperability

Polkadot has achieved its goal – Polkadot (DOT) is a project developed since 2017 and whose mainnet was launched in May 2020. Its objective is to create an interoperable multichain ecosystem. A goal that has just been achieved with the deployment of XCM.

Polkadot deploys Cross-Consensus Messaging (XCM)

Polkadot aims to create a interoperable ecosystem. To do this, the Polkadot ecosystem consists of two elements:

  • The Parachainsindependent blockchains;
  • The relay chainwhich represents the core of the ecosystem and which allows the parachains to be interconnected with each other.

One of the main objectives of Polkadot has always been to allow the different parachains to communicate directly with each other.

“Polkadot has fulfilled its goal of being a fully interoperable multi-channel ecosystem »

Shawn Tabrizi, lead developer at Polkadot.

Indeed, Polkadot has just announced the deployment of its communication system Cross-Consensus Messaging (XCM)which facilitates exchanges between parachains.

Tweet from Polkadot announcing XCM – Source: Twitter.

In practice, XCM allows to send data as well as tokens between different parachains of the Polkadot network. This allows the Polkadot ecosystem to achieve perfect interoperability.

>> Find DOT on the benchmark crypto exchange FTX (affiliate link) <<

XCM a mechanism not to be confused with bridges

At first glance, it is easy to think that XCM is just another bridge protocol. However, the reality is quite different.

Indeed, the Cross-Consensus Messaging protocol is directly integrated into Polkadot’s Relay Chain. Therefore, the data or tokens pass through the Relay Chain as is before being sent to the destination parachain.

Conversely, bridges use a method called wrapping. This consists of blocking the asset on channel A, to reissue a version wrapped assets on channel B.

A model that poses many security problems, because the bridge is positioned as a single point of failure.

As it stands, XCM relies on the Relay Chain to store and transfer messages between parachains. However, in the future, Polkadot would like to allow direct transfers between parachains, without the latter having to be processed by the Relay Chain.

In addition, other blockchains could choose to implement this protocol in order to allow atomic data and token transfers between different blockchains.

Important news that could secure a DeFi ecosystem that has become far too dependent on bridges. Indeed, these solutions, although effective, are sorely lacking in security. At the end of March, the blockchain Ronin had his main bridge hacked. In total, more than 600 million dollars were stolen.

Will Polkadot soon return to the front of the stage? In the meantime, it would probably be time to acquire some DOT. Register now on the FTX reference crypto exchange platform and benefit from a lifetime discount on your trading fees (affiliate link, see conditions on official website).

Leave a Comment