This good news for crypto Polkadot: Here’s why XCM is a huge step forward for blockchain interoperability! – Mag Mirror

Finally, the highly anticipated launch of Polkadot’s breakthrough technology called Cross-Consensus Messaging (XCM) is just around the corner. With the launch of XCM, Polkadot’s native currency called DOT will finally be ready to be exchanged, sent and compounded on all parachains in the Polkadot network.

To view an improved version of this graph, please visit the following site:

This means that users will finally be able to trade and stake their DOT on StellaSwap, which is the main DEX of the Moonbeam network.

The DOT that will be launched on Moonbeam is called xcDOT.

XC-20s are a unique asset class on Moonbeam. It combines the power of Substrate assets (native interoperability) but allows users and developers to interact with them through a familiar ERC-20 interface via pre-compiled contract (Ethereum API) XC-20s & Cross-Chain Asset Overview of Moonbeam

Details of the launch of the DOT farm on StellaSwap are as follows:

Farms to be launched: xcDOT-GLMRFarms open for deposit: May 4, 4:00 PM UTCLive rewarded farms: May 5, 4:00 PM UTCReward tokens: STELLA & GLMRBridge: None! Feel the power of gatewayless transfers on Polkadot.

The DOT finally arrives at Polkadot. Why are you late ?

Prior to the launch of XCM, the usefulness of native DOT usage is limited to crowdloan contributions for aspiring parachain auctions. In order for parachains to go live on Polkadot, they must gain community support by participating in an auction to rent a spot on the network. The more crowdloans a parachain gets, the greater the likelihood that it will get a parachain slot. The underlying DOT provided by investors to a crowdloan is locked in for the duration of the facility, which is approximately 2 years. In return, investors get an allocation of the parachain’s underlying tokens.

Beyond crowdloans, it didn’t make sense for DOT to be available on the network before XCM launched. Indeed, XCM unlocks an essential premise of Polkadot’s enormous potential: interoperability.

Why XCM is a giant leap for blockchain interoperability?

To understand the potential of XCM, one must know that one of the main limitations of blockchain networks is interoperability; this means that it is difficult for one blockchain to interact with another blockchain because they are made differently. For example, it is difficult for the Ethereum blockchain to interact with the Ripple network. So imagine that every blockchain network is a silo unto itself, and the lack of interoperability between networks inhibits the potential of blockchain networks and shifts dependencies to centralized bridging solutions for value transfers. Here are the benefits of interoperability.

Having many application-specific blockchains that communicate with each other through a decentralized master hub leads to greater efficiency, as specialized blockchain networks can instead focus on their business logic rather than the underlying security infrastructure. This is how Polkadot was designed. In addition, having a universal framework for interaction between different networks reduces reliance on current gateway solutions, which are often centralized. Numerous gateway hacks have taken place, resulting in the loss of funds in the hundreds of millions of dollars.

#1: Create more powerful products that streamline the complex user experience

Composability; this powerful concept of DeFi that enables the creation of products and services by simply combining various interoperable components to create greater value, just like Lego blocks. For now, composability is limited to blockchain-specific networks, like Yearn Finance on Ethereum.

#2: Improved Cross-Channel Collaboration

Interoperability between organizations, dApps, and communities that wouldn’t ordinarily interact with each other could make it easier and more efficient to exchange information, leverage each other’s strengths, and cultivate innovation.

Polkadot represents a network of heterogeneous parachains connected to a single, decentralized main chain called the relay chain, where security, finality and communication are shared, while the parachains are free to focus on what matters to them, namely their specialized business logic.

XCM is the technological framework that enables the interoperability of blockchain networks, where messages between different parachas can be transmitted in a transparent and decentralized way.

StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the world of DeFi. Users can trade, earn, produce returns, reconcile assets, explore new projects, and engage in NFT transactions, all from one unified platform. StellaSwap products are structured to facilitate decentralized governance for STELLA holders, while continuing to innovate on the collective basis by design.

💎 Open an account for free to Invest in crypto!

CoinHouse allows you to easily invest in crypto-assets. Creating an account is free and takes just a few simple steps.

📈 Trade cryptos online in just a few clicks!

eToro allows you to trade cryptocurrency easily online. Creating an account is free and very simple.

68% of retail investor accounts lose money when trading CFDs with this provider. You should ask yourself if you can afford to take the high risk of losing your money. eToro users in France cannot open positions to buy real crypto assets, all orders are opened as CFDs.

Thomas Estimbre
Latest articles by Thomas Estimbre (see everything)

We would like to say thanks to the author of this article for this remarkable web content

This good news for crypto Polkadot: Here’s why XCM is a huge step forward for blockchain interoperability! – Mag Mirror

Discover our social media profiles and other pages that are related to them.