Axelar

1. Problems/Challenges it aims to solve


  • Interoperability between blockchains: Axelar enables communication between different blockchain networks by routing messages across chains. This solves the problem of siloed blockchains unable to interoperate.

  • Complexity of cross-chain development: By providing APIs, SDKs, gas/transaction management, Axelar simplifies building cross-chain dApps vs handling low-level details.

  • Security of cross-chain communication: Axelar uses validator consensus, cryptographic proofs etc to secure message relay between chains.

  • Slow/unreliable message passing: Axelar optimizes cross-chain communication by parallelizing transfers, using Subway for fast message routing.

  • Centralization risks: Axelar aims to be decentralized and permissionless based on its validator network and decentralized governance.

2. Solutions


Permissioned instance of the Axelar blockchain (and related off-chain infrastructure) used for cross-chain message passing and secure interoperability.

Application-layer APIs & SDK: Make it easy for dApp developers to add cross-chain capabilities without needing to know the low-level details of Axelar network. The APIs initiate messages which are then processed securely by Axelar's underlying infrastructure.

Axelar network: Axelar has its own network of validators that secure the network through staking and voting. Axelar targets validators as customers to stake on the network and run validator nodes. Axelar incentivizes providers to run nodes and infrastructure for the various connected blockchain networks. This allows validators to verify cross-chain messages.

3. Target Customers


  • dApp developers: Axelar provides APIs, SDKs and other developer tools to easily integrate cross-chain capabilities into decentralized applications. This allows dApp developers to build apps that can communicate across multiple blockchains.

  • Blockchain networks: Axelar aims to connect various Layer 1 and Layer 2 blockchain networks together, enabling interoperability between chains. Axelar targets the developers/teams building these blockchain networks as customers to integrate their chains with Axelar.

  • Validators: Axelar has its own network of validators that secure the network through staking and voting. Axelar targets validators as customers to stake on the network and run validator nodes.

  • Node/infrastructure providers: Axelar incentivizes providers to run nodes and infrastructure for the various connected blockchain networks. This allows validators to verify cross-chain messages.

  • End users: The end users of the dApps built on top of Axelar that need to execute cross-chain transactions are also indirect customers. Axelar empowers advanced cross-chain apps catering to these users.

4. Key Points


The key points about Application-layer APIs and SDK:

  • The APIs allow dApps to call functions to initiate cross-chain message requests.

  • For example, a dApp can call an API to send a message to call a smart contract on another chain, passing arbitrary data.

  • The APIs and SDKs abstract away the complexity of interacting directly with the Axelar network.

  • They provide a smooth developer experience for building cross-chain dApps.

  • Under the hood, the APIs and SDKs interact with the Axelar Gateway on each chain.

  • The Gateway contracts contain the necessary logic to process and route cross-chain messages.

  • So the APIs handle initiating messages and the Gateways handle sending them into Axelar network.

The key points about Axelar Gateways:

  • It is deployed on every external blockchain integrated with Axelar. On EVM chains it is a smart contract, on non-EVM chains it is an application.

  • It enables communication between the external chain and Axelar network.

  • On source chains, it allows initiating cross-chain messages. On destination chains, it enables receiving and executing cross-chain messages.

  • It is controlled jointly by Axelar validators through multiparty cryptography.

  • It receives cross-chain requests from dApps and submits them to Axelar network via relayer services.

  • It authorizes and executes approved cross-chain payloads delivered from Axelar.

5. Key People


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