{"time":1724610418878,"blocks":[{"id":"vxVsNHOcJA","data":{"text":"On June 17, 2016, the DAO (decentralised autonomous organisation) was subjected to an attack exploiting a combination of vulnerabilities, including the one concerning smart contract code calls, that resulted in the transfer of 3.6 million Ether—around a third of the 11.5 million Ether that had been committed to the DAO—valued at the time at around $50 million."},"type":"paragraph"},{"id":"1yGMK0XRCn","data":{"file":{"url":"https://publisher-ap.s3.eu-central-1.amazonaws.com/next-s3-uploads/6641efef-f0ac-4499-bf5a-b4d9449ecc73/Frame-4.png"},"caption":"","stretched":false,"withBorder":false,"withBackground":false},"type":"image"},{"id":"5Ug0kL10tc","data":{"text":"This hack exploited a flaw in Ethereum's consensus mechanism, the Proof-of-Work, leading to the loss of millions of dollars worth of ether. The incident highlighted the importance of robust security measures and the need for interoperability solutions that can address the vulnerabilities inherent in different consensus mechanisms."},"type":"paragraph"},{"id":"Zjv82lMYlV","data":{"text":"This might be seen as effect of one of pressing issues in the blockchain industry particularly blockchain interoperability- incompatibility of consensus mechanisms."},"type":"paragraph"},{"id":"6NyycOgAg7","data":{"text":"Different blockchains often employ distinct consensus algorithms (e.g., Proof-of-Work, Proof-of-Stake, Tendermint) that govern how transactions are validated and added to the blockchain. Among the effect of these disparities, we have efficiency issues, and difficulties in coordinating between different networks which I call liquidity fragmentation."},"type":"paragraph"},{"id":"kY4PbP6uD5","data":{"text":"To address the challenges of blockchain interoperability, interoperable solutions have emerged and are trying to solve them. But the con about these existing solutions for interoperability is that they require heavy engineering work from both platform developers and application builders that must understand different communication protocols to communicate across every pair of ecosystems. "},"type":"paragraph"},{"id":"1oJTyG4k4N","data":{"text":"Who then saves us?"},"type":"paragraph"},{"id":"D31Nf5QgoV","data":{"text":"Axelar has emerged as a promising solution, a decentralised platform that aims to bridge the gap between different blockchain networks, enabling seamless communication and asset transfers across them."},"type":"paragraph"},{"id":"dI1lrEFFCj","data":{"text":"But how exactly does it manage this issue? With its key features, I presume, well, here’s what I know after going through it’s whitepaper:"},"type":"paragraph"},{"id":"qZ3TIx5zJF","data":{"items":["Cross-chain security: Axelar leverages the security of the underlying blockchains by requiring validators to stake tokens from their respective networks. This creates a strong incentive for validators to act honestly and maintain the integrity of the network. There's more to this security mechanism of axelar, but we'll cover that in our next article.","Bridge modules: Axelar uses bridge modules (cross-chain gateway protocols and cross-chain transfer protocols) that are specifically designed to interact with each chain's consensus mechanism, ensuring that transactions are validated and executed correctly on the respective blockchains.","Developer-friendly tools: Axelar provides tools and APIs to simplify the process of building cross-chain applications."],"style":"unordered"},"type":"list"},{"id":"hJwDzmmfJK","data":{"text":"Unlike many other interoperability solutions, Axelar does not rely on a centralized entity or a single consensus mechanism to mediate between different blockchains. Instead, it leverages the security and efficiency of the underlying networks while providing a layer of communication and coordination between them."},"type":"paragraph"},{"id":"Zb19_WOKsi","data":{"text":"To illustrate this concept, consider the example of transferring tokens from Ethereum (a Proof-of-Work blockchain) to Cosmos (a Proof-of-Stake blockchain) using Axelar:"},"type":"paragraph"},{"id":"mr20alQo__","data":{"items":["A user initiates a transfer on Ethereum, which is validated by the Ethereum network using its Proof-of-Work consensus mechanism.","Axelar's bridge module on Ethereum relays the transaction information to the Cosmos network.","Cosmos' bridge module (The Gravity Bridge) validates the transaction using its Proof-of-Stake consensus mechanism and adds it to the Avalanche blockchain.
"],"style":"unordered"},"type":"numberedList"},{"id":"NUG6wesH8v","data":{"text":"By utilising the native consensus mechanisms of each blockchain, Axelar ensures that transactions are secure and conform to the specific rules and requirements of each network. This approach helps to mitigate the risks associated with interoperability and promotes a more decentralised and trustless ecosystem."},"type":"paragraph"},{"id":"kiCUpjIheR","data":{"text":"Benefits for dApps","level":2},"type":"header"},{"id":"CC11K2G6m_","data":{"text":"Axelar offers significant benefits for decentralised applications (dApps) that require interaction with multiple blockchains. By providing a seamless and secure way to bridge different networks, Axelar enables dApps to:"},"type":"paragraph"},{"id":"5d51-elcbA","data":{"items":["Access a wider user base: dApps can reach users on multiple blockchains, expanding their potential market."],"style":"unordered"},"type":"list"},{"id":"GNIONtAgsQ","data":{"items":["Leverage the strengths of different blockchains: dApps can combine the advantages of different networks, such as the security of one blockchain with the scalability of another."],"style":"unordered"},"type":"list"},{"id":"siq3g7gvSa","data":{"items":["Create more complex and innovative applications: Axelar enables dApps to develop more sophisticated use cases, such as cross-chain DeFi protocols, NFT marketplaces, and gaming platforms."],"style":"unordered"},"type":"list"},{"id":"J-xlTky-SZ","data":{"text":"In conclusion, Axelar represents a promising solution to the challenges of blockchain interoperability. By addressing the issues of consensus mechanism compatibility and providing a secure and efficient way to bridge different networks, I feel Axelar is paving the way for a more interconnected and vibrant Web3 ecosystem. Do you also think Axelar is the solution needed for complete interoperability? Let us know in the comment section"},"type":"paragraph"}],"version":"2.26.5"}