Polkadot releases cross-consensus messaging, Drops DAO launches Mainnet

abdelaziz Fathi

Proof-of-stake blockchain Polkadot has achieved a significant feat in its development, as it rolls out its own cross-chain message-passing protocol that enables a parachain to communicate with another.

Dubbed ‘XCM,’ Polkadot’s messaging system allows communication between its various parachains and enables hyped digital assets like NFTs to be transported from one chain to another.

To recap, Polkadot enables the use of parachains which are custom, project-specific blockchains that are integrated within its native ecosystem. The new subprotocol references a bunch of parachain blocks to turn the network into a fully interoperable multichain ecosystem.

The custom-made parachains have been built using Substrate, the modular blockchain software development kit underpinning the Polkadot network. Each of those blocks might indicate that the parachain wishes to send messages to another. However, XCM cannot actually send messages between systems as it is a format for how message transfer should be performed.

Unlike other bridging mechanisms, Polkadot’s XCM format secures messages across channels at the same level as the Relay Chain, Polkadot’s central hub used by all chains in the network.

XCM aims to be a language communicating ideas between consensus systems, including smart contracts and Substrate runtime modules. As such, more than 550 chains, apps, and services have already been built within Polkadot and its “canary” network Kusama.

Meanwhile, Polkadot community has approved the upgrade of Statemint, its parachain dedicated to asset functionality. Polkadot’s common good parachain now allows network users to mint NFTs for the first time, teleport them from one chain to another and even track them across chains. Statemine, in its role as the canary network for Statemint, opens up a new world of possibilities for NFTs which have previously been confined to their own chains.

Hoon Kim, chief technical officer of Astar, said: “With XCM, we have a stable and reliable inter-chain messaging channel that is far superior to the fragmented bridges. I can imagine a future where more and more projects use XCM to create something that was impossible just a couple of years ago.I see traditional smart contracts on isolated layer 1 chains like setting up shop in a kingdom surrounded by walls. Then we have bridges which are like a trading route that first connected nations from nations. Now we have XCM, which is like a free trade agreement for blockchains. This is the natural future.”

Eliott Teissonniere, chief technical officer of Nodle, added: “XCM allows us to leverage the unique features from our parachain partners without having to reinvent the wheel in the most secure manner possible. For instance, we will be able to run a DAO on Astar that manages funds on Acala and controls real-world devices via Nodle.”

Drops powers NFT and DeFi economy with Mainnet release

Drops DAO, which provides loans for NFT and DeFi assets to supply them with much-needed utility, is releasing its long-anticipated solution on mainnet.

Drops protocol uses lending pools that enable any type of NFT asset to be used as collateral — from collectibles and metaverse items, to financial NFTs.

The mainnet launch offers immediate utility and liquidity in the form of a simple to use and resilient solution that enables users to leverage their idle NFTs and DeFi tokens to obtain loans and earn extra yield.

Concretely, the mainnet release of Drops DAO responds to the rise of Defi as a valid alternative to the conventional financial systems. In this respect, it specifically embraces whitelisted NFT collections as a way to offer higher collateral ratio (up to 60%), with multiple tokens available to borrow or supplied as collateral.

Moreover, it enables any NFT collection to gain broader utility and liquidity through these lending pools, alleviating sell pressure on secondary markets.

  • Read this next

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    Market News

    Bitcoin stalls at $53,000 level, Ethereum reaches $3,000

    Bitcoin (BTC) faced renewed resistance at the crucial $53,000 level on Tuesday, indicating that the primary cryptocurrency is likely to continue consolidating before making its next decisive move.

    Digital Assets

    UK targets new laws for stablecoins and crypto staking within six months

    The United Kingdom is gearing up to enact fresh legislation regulating stablecoins and crypto staking within the next six months.

    Web3

    Masa’s Milestones Before Mainnet Launch

    Since its launch in August 2022, Masa, the premier decentralized network for personal data, has experienced rapid growth, securing over 1.2 million unique wallets and accumulating more than 23 million data points. Despite a bear market, the network has attracted over 40,000 node operators to its testnet within just 18 months.

    Digital Assets

    Web3 Greatest Startup Competition Hits $10M in Prizes

    We’re thrilled to announce the return of the highly anticipated Startup Competition at Paris Blockchain Week. With a staggering array of prizes totaling over $10 million, encompassing funding, grants, credits, accelerations, listing, and more, this competition has become a cornerstone event within the blockchain startup ecosystem.  

    Digital Assets

    Hedge fund Tyr Capital faces dispute over exposure to FTX

    Crypto hedge fund Tyr Capital found itself embroiled in a dispute with one of its clients concerning its investment exposure to the bankrupt digital assets exchange FTX, as reported by the Financial Times on Tuesday.

    Retail FX

    Plus500 revenue down to $725 million, unveils $100M share buyback

    Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today reported its 2023 results, which came “significantly ahead” of analysts’ estimates.

    Education

    Strategies for Profiting from Interest Rate Fluctuations

    The world of Forex trading is a complex and dynamic domain where interest rates play a pivotal role in shaping currency values. Octa’s team of financial experts delves into this intricate relationship, providing traders with a comprehensive understanding and strategies to harness economic indicators for enhanced trading performance.

    <