This good news for crypto Polkadot: Here’s why XCM is a big step forward for blockchain interoperability!





Finally, the long-awaited launch of Polkadot’s groundbreaking technology called Cross-Consensus Messaging (XCM) is just around the corner. With the launch of XCM, Polkadot’s original currency called DOT will finally be ready to be exchanged, sent and assembled on all parachains in the Polkadot network.

To see an enhanced version of this graphic, please visit: https://orders.newsfilecorp.com/files/8203/122745_4c67deb7d477d9d2_001full.jpg.

This means that users will finally be able to trade and bet their DOT on StellaSwap, which is the Moonbeam network’s most important DEX.

DOT, which will be launched on Moonbeam, is called xcDOT.

The 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 precompiled contract (Ethereum API) XC-20s & Cross-Chain Asset Overview of Moonbeam

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

Farms to be launched: xcDOT-GLMRFarme open for deposit: 4 May at 16.00 UTCLive Rewarded Farms: May 5 at. 16.00 UTCReward Tokens: STELLA & GLMRBridge: None! Feel the power of gateway-free downloads on Polkadot.

DOT finally arrives at Polkadot. Why are you late ?

Prior to the launch of XCM, the benefits of native DOT use were limited to crowdloan contributions to aspiring parachain auctions. In order for parachains to go live on Polkadot, they must obtain community support by attending an auction to rent a seat on the network. The more crowdloans a parachain gets, the more likely it is to get a parachain slot. The underlying DOT provided by investors for a crowdloan is locked in during the facility, which is approximately 2 years. In return, investors receive an allotment of the parachain’s underlying tokens.

In addition to crowdloans, it did not make sense for DOT to be available on the network before XCM was launched. In fact, XCM unlocks an essential prerequisite for Polkadot’s enormous potential: interoperability.

Why is XCM a giant leap for blockchain interoperability?

To understand the potential of XCM, one must know that one of the most important 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 each blockchain network is a silo in itself, and the lack of interoperability between networks hampers the potential of blockchain networks and shifts dependencies to centralized bridge solutions for value transfer. 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 the reliance on current gateway solutions, which are often centralized. Several 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 makes it possible to create products and services by simply combining different interoperable components to create greater value, just like Lego bricks. So far, composition is limited to blockchain-specific networks, such as Yearn Finance on Ethereum.

# 2: Improved cross-channel collaboration

Interoperability between organizations, dApps, and communities that would not normally interact with each other could make it easier and more efficient to exchange information, leverage each other’s strengths, and innovate.

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

XCM is the technological framework that enables 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 to offer an integrated gateway to the DeFi world. Users can trade, earn, generate returns, reconcile assets, explore new projects and participate in NFT transactions, all from a single platform. StellaSwap products are structured to facilitate decentralized management for STELLA holders while continuing to innovate on a collective basis.

💎 Open an account for free to invest in crypto!

CoinHouse allows you to easily invest in cryptocurrencies. Creating an account is free and takes only a few simple steps.

📈 Trade cryptocurrencies online with just a few clicks!

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

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 cryptocurrencies, all orders are opened as CFDs.

Thomas Estimbre
Latest articles by Thomas Estimbre (see everything)





Leave a Comment