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- To demonstrate the demand and uses, over half a million XCM messages have been sent on Polkadot and Kusama combined.
- Communication between blockchains has previously been tapped and contributed to losses amounting to tens of billions of dollars.
The development of blockchain technology has significantly benefited from the Polkadot (DOT) ecosystem. The layer 0 meta-protocol is popularly known for connecting and securing blockchains through facilitating cross-chain data and asset transfers. As a result, the Polkadot ecosystem has grown to a $7 billion valued blockchain with the $DOT coin enjoying a daily traded volume of around $225 million.
Nevertheless, blockchain technology is vastly siloed and many Web3 developers are experiencing headwinds in scaling and tapping on several chains severely. Already, Polkadot has four components that give Web3 developers tooling for scalability including its relay chains, para chains, para threads, and bridges.
Polkadot and XCM for Web3 developments
In a bid to advance blockchain interoperability, the Polkadot network has announced a strategic partnership with XCM, a cross-consensus messaging protocol. Notably, the XCM is a format that defines what kind of data is transferred during communications between different blockchains, and how they should be interpreted. As a result, decentralized applications tapping on the Polkadot network can seamlessly scale with the XCM technology.
2/ With XCM, Polkadot has created an ecosystem of dynamic, interconnected projects that can collaborate with each other, build apps spanning multiple chains, and create multichain DAOs. Learn about how XCM is a game-changer for Web3 projects.https://t.co/taioTtBTaj
— Polkadot (@Polkadot) April 20, 2023
Reportedly, over half a million XCM messages have been sent on Polkadot and Kusama combined. With the launch of XCM’s latest version dubbed XCM v3, several crucial new features are expected to be unlocked – including bridging to external networks, NFT exchanges, and improved programmability.
“Polkadot has one of the most active developer communities in blockchain, connecting a growing ecosystem of 600+ projects building the next generation of blockchain apps and services. More than 20,000 XCM messages are sent per month on the network,” Polkadot noted.
Communication between blockchains has previously been tapped and contributed to losses amounting to tens of billions of dollars. However, the trend will no longer be the case with Polkadot and XCM working on a common goal of securing communications between different blockchains.
3/ XCM messages are computer programs sent from one location to another. They can store any data, making them ideal for cross-chain applications. Chains can not only leverage each other's chains but program each other in ways that are impossible on legacy networks.
— Polkadot (@Polkadot) April 20, 2023
Interestingly, XCM v3 connects blockchains to smart contracts that run on different virtual machines, substrate pallets, and over bridges. Additionally, the latest version of XCM can be used to connect networks with different consensus mechanisms and connect a PoW network like Bitcoin with a PoS network like Polkadot.
As a result, DeFi developers have the freedom to use any blockchain and tap on Polkadot to scale to different chains without compromising security.
Eliott Teissonniere CTO at Nodle Protocol noted:
XCM will allow us to leverage the unique features from our parachain partners in the most secure manner possible, without having to reinvent the wheel. For instance, we will be able to run a DAO on Astar that manages funds on Acala and controls real-world devices via Nodle.
