Axelar Raises $35M to Bring Cross-Chain Interoperability to the Cosmos Ecosystem

Interoperability is a major barrier to blockchain's adoption as a mainstream technology, so being able to easily build and interact across multiple chains is significant

Blockchain technology has gained immense popularity in recent years, offering a decentralised and secure foundation for various applications. However, achieving interoperability among multiple blockchains has remained a significant challenge. To address this issue, several projects have emerged, aiming to enable seamless communication and asset transferability across different chains.

One notable platform in this domain is Axelar, which provides a decentralised network and tools for developers to easily integrate their applications with multiple blockchains. The platform's mainnet went live in 2022, following two years of development and over $US64 million raised in venture capital funding.

At the core of Axelar's functionality is a network of validators, responsible for processing transactions and maintaining the network's security. These validators are incentivised to run nodes for as many supported chains as possible, earning staking rewards based on the number of chains they support.

As the network grows and connects more chains, it becomes increasingly restrictive to require every Axelar validator to run a node for each supported chain. Instead, the project employs a sliding scale of validator requirements, where validators are encouraged to support a diverse range of chains to ensure optimal network coverage.

To facilitate interactions between applications and multiple blockchains, Axelar utilises a gateway smart contract on each supported chain. These contracts provide an entry and exit point for assets moving on and off the Axelar network, enabling applications to integrate with any supported blockchain via a single integration with Axelar.

Furthermore, Axelar's software development kit (SDK) simplifies the process of building applications that can interact with multiple blockchains. The SDK provides a unified interface for developers to access various blockchain functions, such as sending transactions, querying balances, and interacting with smart contracts.

By combining the decentralised network, gateway smart contracts, and SDK, Axelar aims to empower application developers with the ability to easily build and interact across multiple chains, ultimately enhancing the accessibility and usability of blockchain technology for both developers and decentralised app (dApp) end-users.