What is Axelar Coin? How does Axelar coin work?

Axelar: Cross-chain Interoperability Protocol

Axelar is a decentralized network designed to build bridges between different blockchains to achieve cross-chain interoperability . Its design enables users to easily transfer assets and data between different blockchains, eliminating the closure between blockchains.

How Axelar works

The working principle of Axelar is based on the following key components:

• Universal Router: This is a decentralized network responsible for coordinating cross-chain Communications and Transactions.
• Cross-chain bridges: These bridges connect different blockchains, allowing assets and data to flow between them.
• Validators: These nodes are responsible for validating transactions and ensuring network security.

Cross-chain communication process

When users want to transfer assets or data between different blockchains, Axelar works as follows:

1. Users submit transaction requests to the universal router.
2. The router forwards the transaction to the relevant cross-chain bridge.
3. Cross-chain bridge locks assets or data on the sending chain.
4. The router forwards the transaction to the receiving chain through the validator network.
5. The cross-chain bridge on the receiving chain unlocks the assets or data and sends them to the recipient.

Advantages of Axelar

Axelar offers the following advantages:

• Cross-chain interoperability: It allows users to easily move between different blockchains Transfer assets and data.
• Security: Its decentralized network and validator system ensure the security and reliability of transactions.
• Scalability: It can be easily expanded as new blockchains are added.
• Versatility: It is compatible with various blockchains, including Ethereum, Bitcoin, and Cosmos.

Use cases for Axelar

Use cases for Axelar include:

• Transfer assets between different blockchains, such as from Ethereum to Bitcoin currency.
• Access cross-chain DeFi applications such as lending assets on Ethereum and earning returns on Polygon.
• Develop cross-chain dApps and take advantage of multiple blockchains.

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