Key points to remember:
- Axelar is leading the way in cross-chain interoperability, transforming the way blockchain networks communicate.
- The collaboration between Ripple and Axelar paves the way for XRP to access decentralized finance (DeFi) via the XRPL EVM Sidechain.
- Axelar’s decentralized validator network improves cross-chain security, minimizing the risks associated with centralized bridging.
In a recent episode of Block Stars, Ripple CTO David Schwartz and Axelar co-founder Georgios Vlachos dove into interoperability, a key goal for advancing blockchain technology. Vlachos, known for his work founding Algorand, shared how he and his co-founders launched Axelar to tackle blockchain “islands,” isolated projects.
This is what motivated Axelar’s commitment to network bridging for transparent transactions across blockchains. According to Vlachos, with this critical connectivity solution, Axelar helps create an inclusive blockchain ecosystem.
The essential role of interoperability
During his speech, Vlachos emphasized how interoperability is crucial to the maturity of blockchain and hoped it would be more accessible to users of all stripes.
He compared the silos of blockchains to old, isolated banking systems, drawing attention to the fact that interoperability increases usability – not all new applications. “It’s about making existing use cases easy to use,” Vlachos explained, highlighting Axelar’s role in breaking down barriers between blockchains.
Unlike traditional solutions based on centralized control, Axelar has a decentralized network of 75 validators in the form of a circle. This approach very effectively reduces the risk of intrusion or hacking, which has become quite common for transition solutions based on a decentralized approach.
Axelar does this by using decentralized validators to ensure that cross-chain activities cannot be tampered with and remain secure; interoperability is therefore a viable solution for broader blockchain applications.
Unlocking DeFi for Ripple’s XRP with the XRPL EVM sidechain
Axelar’s partnership with Ripple has opened up new opportunities for XRP in the decentralized finance space, opening access to one of the largest communities in the crypto space. Axelar provides a bridge for the XRPL EVM Sidechain, enabling the transfer of asset modifications like Wrapped XRP between the XRP Ledger and other Ethereum compatible chains.
This in turn would open up more DeFi possibilities to more XRP holders, thereby allowing asset holders to make the most productive use of the assets. “Opening up DeFi for XRP is a game changer,” says Vlachos, noting that this could be a complete shift in how XRP was previously used in the industry.
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