Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be writing my entry for the #Bridge Across With ACX writing contest hosted on Publish0x.
Across Protocol
The Across Protocol is the latest cross-chain token bridge in the blockchain space, and one all users should be aware of. It allows for fast and secure interoperability between different blockchain networks meaning any crypto users looking for a swift and simple bridge for their tokens need look no further. Of course many users will be utilizing the Ethereum blockchain and Across Protocol means they can bridge to other blockchains with ease thanks to the use of UMA's optimistic oracle for security. The Across Protocol focuses on capital efficiency through a single liquidity pool, makes use of competitive relayers, and has a no-slippage structure for fees. Across was designed to provide seamless and cost-effective cross-chain transactions but it also makes sure that users have a safe and efficient experience with a single point of access for cross-chain transactions.
The previously mentioned UMA optimistic oracle is used to verify transfers optimistically which means the entire process happens quicker but also maintains a high level of security. UMA was launched back in November 2021 during the crypto bear market and it has processed more than 10,000 data assertions for some of Web3’s leading projects. It is known as Web3’s decentralized truth machine because, UMA takes any kind of verifiable data about the world and trustlessly records it on the blockchain.
When first considering Across Protocol it may seem the same as any other Ethereum Bridge to Layer 2 blockchains. However, the use of UMA's optimistic oracle means the transfers are secured and verified, while also settling rare dispute cases. When a user makes use of the Across Protocol Bridge to transfer their assets the relayers send the requested funds to the destination chain and then wait for UMA's optimistic oracle to verify that the order was filled. In basic terms it works in a similar way to Compound, as the users is effectively taking a loan from the relayer while paying a small fee to do so. When the relayers “optimistically” fill orders it happens in rapid time. The user then receives their assets quickly and the entire process is complete.
Across Protocol makes use of a single liquidity pool and a competitive relayer landscape to optimize capital efficiency. This means it can maintain its standard interest rate model while being gas-efficient thanks to robust code checks and UMA's optimistic oracle removing any requirement for onchain validation. This means Across stays secure while UMA is also verified by humans. This means no matter how many people make use of the Bridge there is always a least one honest actor present to dispute any illegitimate transaction. Anyone can raise a dispute through UMA, with $UMA tokenholders responsible for settling bonds.
Across and UMA are linked in more was then just the use of the optimistic oracle. Across was built by a group of engineers, financial experts, and other domain specialists at Risk Labs. This is the same entity which oversaw the creation of UMA. Across’ team members work alongside UMA’s at Risk Labs, but it is important to note that UMA's optimistic oracle is not limited to just the Across Protocol.
The governance model of Across Protocol means the community holds the power to make decisions and the native token, ACX, is a key player in this model. It plays a central role in managing the protocol while also offering an incentive for users to participate. The ACX token is an ERC-20 token and it manages the DAO's treasury along with governing the decisions impacting the protocol. A total of 1 billion ACX tokens exist and they were allocated among the protocol's treasury, team, private investors, early adopters, and liquidity providers. Holders of the ACX token can participate in the governance process, including ideation, discussion, proposal, feedback, voting, and execution phases.
There are a number of ways to store ones ACX tokens. They can be securely kept in a MEXC Account Wallet if purchased on MEXC. Another popular wallet for storing ones ACX tokens is Metamask. Finally, the multi-asset Atomic Wallet is also capable of storing ACX tokens. These are just some of the more popular and common wallets for storing ACX tokens.
A number of exchanges, such as Uniswap and Velodrome for DeFi or Gate.io and Coinbase for CeFi, sell the ACX tokens. The price has shown steady growth since being deployed and it has recently spiked since Bitcoin managed to reach the $100,000 mark. Its all-time high came on the 6th of December at $1.69, and is currently trading for around $1.17 at the time of writing. To give some perspective, the token saw a 99.9% increase in value in 24 hours between the 5th and 6th of December 2024.
As previously mentioned security is a major concern when it comes to crosschain interoperability. This is because when connecting multiple chains together there are a multitude of new vulnerabilities introduced. A security-first approach is taken by Across Protocol by making use of layered security models, decentralized validators, and monitoring mechanisms to protect assets during transfers. Across also leverage third-party filler networks to execute crosschain Intents and reduce user exposure to potential threats.
There is plenty of scope for development and expansion in the future of crosschain interoperability. Advancements in DeFi security models, emerging standards, and growing adoption are just some of the exciting things to watch out for. So much can be achieved with crosschain interoperability and having a standard crosschain token will help moves things to the next level. Say hello to ERC-7683.
This is a co-developed standard token by Across Protocol and Uniswap Labs. The ERC-7683 token will introduce a universal and standardized framework for crosschain Intents across the EVM ecosystem. It can be used by anyone, and will support seamless interoperability between Ethereum mainnet, L2 chains, rollups, appchains, and sidechains. The ERC-7683 token tackles the problems of needing a consistent and functional cross chain token. This will make it easier for developers to build and for users to access their networks. Users will have an easier time making crosschain Intnets, such as token swaps, NFT transfers, and crosschain deposits. So far over 40 projects have pledged their support for ERC-7683 and it will help to build and create a unified, scalable Ethereum ecosystem
Some of the intended benefits it will deliver to the Ethereum ecosystem are:
- Unifies Ethereum: Establishes a universal standard for crosschain actions across L2s and sidechains, supporting Ethereum’s goal as the leading decentralized application platform.
- Enables Interoperability: Standardizes order and settlement interfaces for seamless crosschain execution.
- Eliminates Fragmentation: Provides a common framework that harmonizes diverse systems, enabling smoother crosschain operations.
- Enhances User Experience: Delivers simplified, intuitive, and frictionless crosschain interactions for users.
- Boosts Liquidity: Allows dApps to access shared filler networks across chains, offering deeper liquidity.
- Speeds Up Transactions: Reduces failure rates and speeds up transaction times by fostering competition among fillers.
- Drives Innovation: Transforms the crosschain landscape by promoting collaboration and encouraging innovative solutions across Ethereum.
The future looks bright with Across Protocol. User are certain of a seamless and simple process for bridging assets, a token rapidly growing in value, and a bright future of crosschain interoperability thanks to ERC-7683. There is plenty of reason to get familiar with Across Protocol now as it can be the simple solution for unforeseen problems in transferring blockchain assets down the line.
Have a great day and good luck to everybody in the writing contest.
Peace. CryptoGod-1.
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