MoonbeamNetwork And AcalaNetwork Launch The First Polkadot Cross-chain Connection
Moonbeam announced a cross-chain connection with the Acala network using bidirectional HRMP channels. Allows for native communication and token transfers between both the two chains, avoiding the need for bridges. This is the first connection using XCM on Polkadot since XCM that was released last week. Though many more are sure to follow connections based on XCM on Kusama. With this update, ACA and GLMR, the chains’ base utility tokens, and aUSD, Acala’s decentralized stable coin, will be freely moved and used in the De fi ecosystems of both para chains. GLMR will be available on Acala follows Moonbeam’s runtime upgrade later this month.
Fristly, XCM (cross-consensus messaging) is a novel mechanism that enables interoperability within the Polkadot and Kusama ecosystems. This technology allows for rich messaging and interaction between para chains on the network. In this initial launch phase, the majority of these interactions focus around the movement of tokens; shortly, XCM and other cross-chain technologies will power a variety of messages that will enable multi-chain DApp deployments that leverage specialization on each chain like identity management, storage, and privacy.
GLMR can be used in Acala’s Defi Apps in the coming days and will be considered as a future supported collateral type for minting aUSD stable coins. Similarly, ACA and aUSD token holders can deposit those assets for use on Moonbeam through the DApp dashboard, and, from there, they can be used across the many applications in its Defi ecosystem as xcACA and xcaUSD. These ‘xc’ assets are XC-20s, a token standard based on ERC-20 but with enhanced cross-chain capabilities.
Certainly, Acala is a decentralized finance network powering the aUSD ecosystem. The core product, Acala USD, is a decentralized, multi-collateral, crypto-backed stablecoin serving as the native stablecoin of the Polkadot ecosystem.
About Moonbeam Network
Firstly, Moonbeam the top destination for multi-chain applications on Polkadot, makes it easy to build natively interoperable applications. This Ethereum compatibility allows developers to deploy existing Solidity smart contracts and DApp frontends to Moonbeam with minimal changes.