What is Axelar (AXL)?

Deep Dive

1. Purpose & Value Proposition

Axelar solves blockchain fragmentation by enabling secure cross-chain communication. It allows developers to build applications that interact with multiple chains without relying on centralized bridges. For example, Axelar powers the XRP Ledger’s EVM sidechain, letting XRP holders access Ethereum-based DeFi (Cryptobriefing).

2. Technology & Architecture

Built using the Cosmos SDK, Axelar employs a DPoS consensus mechanism where validators stake AXL tokens to verify cross-chain transactions. Its General Message Passing (GMP) protocol lets chains share data and trigger actions (e.g., moving assets or executing smart contracts). Axelar’s bridges use multi-signature thresholds to prevent exploits, a critical upgrade over earlier bridge designs.

3. Ecosystem & Key Differentiators

Axelar focuses on enterprise adoption, partnering with institutions like Crypto.com for custody solutions and Midas for tokenized XRP products. Unlike competitors like LayerZero, Axelar emphasizes compliance and scalability, supporting cross-chain USDC transfers and AI-driven automation via frameworks like AgentFlux (Coindesk).

Conclusion

Axelar is the connective tissue for a multichain future, balancing security and flexibility for both DeFi and institutional use cases. As cross-chain activity grows, can Axelar maintain its lead against modular interoperability rivals?