Axelar Unveils Interchain Token Service to Enhance Interoperability of ERC-20 Tokens
Blockchain project Axelar has launched its Interchain Token Service (ITS), a product designed to improve the interoperability of ERC-20 tokens across all Ethereum-compatible chains. The service focuses specifically on the interoperability of ERC-20 tokens across all EVM-compatible ecosystems. Here are the key points:
– The ITS aims to enhance the interoperability of ERC-20 tokens across different Ethereum-compatible chains.
– Tokens will be generated on a 1:1 ratio and managed using Axelar’s native computing environment, the Axelar Virtual Machine.
– Sushi, a decentralized exchange (DEX), is one of the first platforms to adopt the interchain tokens through the ITS.
– Sushi plans to use the ITS to enable seamless interaction of its native SUSHI token across multiple chains.
– The initial deployment of the ITS will allow SushiSwap to manage its multichain deployments more efficiently.
According to Jared Grey, Sushi’s head chef, the ITS will provide Sushi users with a more seamless and secure interchain experience. The traditional approach of using bridged token versions for cross-chain transfers often comes with security risks and compatibility issues. Sergey Gorbunov, co-founder of Axelar, stated that Axelar’s interoperability solution addresses these challenges by utilizing specialized smart contracts and a software development kit for managing interchain tokens.
Hot Take:
Axelar’s Interchain Token Service has the potential to significantly improve the interoperability of ERC-20 tokens across various Ethereum-compatible chains. By providing a more secure and efficient solution than bridged token versions, this service can enhance the user experience and expand the possibilities for decentralized exchanges like SushiSwap. This marks a step forward in achieving true cross-chain interoperability within the blockchain ecosystem.
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