ComposableFinance Introduces The Composable XCVM
ComposableFinance Introduces Composable XCVM: building interoperable applications on Composable Parachain with CosmWasm.
XCVM makes smart contracts natively interoperable. The XCVM acts as a singular place developers can write their smart contracts on, to orchestrate functionality across multiple ecosystems. As such, developers can leverage the benefits of several different chains, and not need to create multiple instances or manage bridging.
The XCVM uses the Inter-Blockchain communication standard and the CosmWasm smart contract framework to enable an environment where smart contracts interoperate between several different chains in a trustless and secure manner.
How the XCVM Works
The XCVM facilitates proactive interoperability but how? It is designed as a top-level orchestration layer for deploying protocols that can communicate natively across multiple chains at once.
Composable developed the XCVM using CosmWasm, a framework that allows developers to build dApps that permits multi-chain contracts i.e., one dApp, one contract, but multi-chain orchestration.
Hence no need to always bother about deploying a full application on another chain and then looking for the best bridging technology for these specific applications on different chains to communicate.
Rather, XCVM developed with CosmWasm allows developers to build once, deploy once and reap cross-ecosystem communication for their dApps. The XCVM can achieve this as it heavily leverages IBC to communicate with other smart contracts external to the dApp environment. Composable’s Routing Layer, also a component of the XCVM acts as an incentivized pathway as it selects the optimal route for desired cross-ecosystem communication and to our transfer availability layer, Mosaic, which then facilitates asset transfers, with settlement being recognized on our parachain.
Through this architecture, interoperability is not an afterthought, but is a native aspect of the environment. As a user deposits funds on to one chain, for example, this information is binded to the IBC at the moment of contract instantiation. As a result, that same user can then withdraw their deposit from a different chain, included in the XCVM smart contract.
Summary
The XCVM is the natural next step in the evolution of DeFi. It will create a new frontier for developers and users to achieve a seamlessly integrated environment that is deeply customizable, and absolutely ecosystem agnostic. The XCVM will build a future for DeFi that aligns with users incentives, and mitigates or removes barriers to its use and possibilities.
About Composable Finance
Composable Finance is a cross-layer and cross-chain interoperability platform for Layer 2 Ethereum and Polkadot/Kusama. Composable Finance is a cross-chain and cross-layer interoperability platform. The solution is Composable’s dual-pronged approach to interoperability, which includes a hyper-liquidity infrastructure layer for DeFi assets that will be powered by both layer 2 on Ethereum and Polkadot.
