Polkadot Launches Cross-Consensus Messaging to Streamline Communication Between Parachains

Key Insights:

• Polkadot XCM went live to support communication among its parachains.
• This will enable contact between the network’s 500 chains, apps, and services.
• Polkadot’s price hit a nine-month low this week.

In a press release today, Polkadot announced its latest milestone, the launch of XCM, a messaging system that allows for communication between its various parachains.

Serving as a cross-consensus messaging system, XCM has fulfilled Polakdot’s foundational objective to be a fully interoperable multichain ecosystem.

Now, parachains can transfer assets and data among themselves, through the use of XCM. It is expected that the development will benefit over 500 chains, apps, and services that have been developed on Polkadot and its parachains.

Currently, messages sent and received across the XCM channels are secured at the same level as the Relay Chain. But going forward, this will change with the arrival of XCMP, which will allow data to be sent across parachains, without the need to be stored on the Relay Chain.

Polkadot deployed this service to the Statemint parachain enabling users to mint non-fungible tokens (NFTs) and teleport them from one chain to another and even track them across chains.

Commenting on the launch, Hoon Kim, chief technical officer of the Polkadot native dApp and parachain auction winner Astar, said:

“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.”

Polkadot on the charts

While Polkadot is making strides in the decentralized finance (DeFi) environment, pioneering game-changing systems on the spot front, it has not been impressing its investors.

In the last month, DOT has dropped by 37.55% from $23.2, to trade at $15.23, at the time of writing.

But by falling to the lowest DOT has been at in almost eight months, DOT has set itself up for recovery in the coming weeks, making $20 as its next target.