FVM Virtual Machine Infinite Imagination: Cross-Chain Interoperability
Interoperable networks enable Filecoin to provide its competitive services (such as data computation and storage) to applications on other blockchains.Author: Filecoin Network
The release of the FVM virtual machine on March 14, 2023, has transformed the existing Filecoin ecosystem and is expected to unlock the full potential of the open data economy. Below are some projects building cross-chain interoperability on the Filecoin virtual machine and their highlights.
The launch of Axelar and Celer Network information and token bridging solutions on the Filecoin mainnet marks an important step towards cross-chain interoperability. These integration solutions enable seamless communication and asset transfer between Filecoin and over 30 leading Web3 projects (such as Polygon, Ethereum, Binance Smart Chain, Avalanche, etc.).
Interoperable networks allow Filecoin to offer its competitive services (such as data computation and storage) to applications on other blockchains. This pathway enables Dapps across various blockchains to leverage thousands of storage providers, resources, and future sub-networks on the Filecoin network to meet their data needs.
Axelar and Celer bring some of the highest standards in security, user experience, modularity, and features, and the Filecoin project is excited that these protocols are now live on the mainnet. By using tools like Celer Network and Axelar, developers can now start building a multi-chain future, using Filecoin as a scalable, trustless, verifiable, and secure data layer.
Bridging Assets to Filecoin
Various bridging mechanisms can facilitate the transfer of mappable assets (such as ETH, BTC, USDC, and USDT) between Filecoin and other blockchains. With the liquidity provided by other major tokens, off-chain protocols can easily pay for Filecoin services and the fees of other FVM-native dapps, as well as easily onboard users with other assets. You can read Celer's announcement on their blog (https://blog.celer.network/2023/03/20/celer-cbridge-and-im-support-launched-on-the-filecoin-virtual-machine-fvm/#:\~:text=USDC%20%E2%80%93%200x2421db204968A367CC2C866CD057fA754Cb84EdF,WBTC%20%E2%80%93%200x592786e04c47844aa3b343b19ef2f50a255a477f) to learn how to bridge wrapped assets to Filecoin using Celer.
Cross-Chain Token Swaps
Now, developers can leverage cross-chain liquidity and market mechanisms to simplify the onboarding of new users and access to other protocols. This means that if Filecoin users want to hold assets on-chain, they can access the pools with the highest liquidity through bridging, swapping, and bridging back to Filecoin. Protocols like Squid Protocol (https://www.squidrouter.com/) will soon enable dapps on FVM to integrate and onboard users with a single click. This means dapps can offer users greater flexibility and lower fees. Ready to bridge your assets? You can start now through cBridge (powered by Celer Network) (https://cbridge.celer.network/1/56/USDC) or Satellite token transfers (powered by Axelar) (https://satellite.money/?source=ethereum\&destination=osmosis\&assetdenom=uusdc\&destinationaddress=), the latter of which will be available next week.
Cross-Chain Smart Contract Calls
Smart contracts on other leading blockchain projects can now pay for, verify, and execute data storage on Filecoin. For example, a DAO on Ethereum can now use EVM smart contracts to verify data storage and pay in ETH—this can be done directly or through upcoming service aids like Lighthouse Files (https://files.lighthouse.storage/).
This brings new opportunities for users and developers to interact seamlessly with existing and future data auction and storage protocols on Filecoin. You can first check out the FVM storage deal proposal starter kit (https://github.com/filecoin-project/fvm-starter-kit-deal-making) or refer to the documentation on Axelar's general message passing (https://docs.axelar.dev/dev/general-message-passing/overview) and Celer's inter-chain communication (https://im-docs.celer.network/developer/celer-im-overview).
Powerful Data Capabilities Between Blockchains
By enabling the transfer of tokens and messages, Axelar and Celer allow dApps on over 40 blockchains (including Ethereum, Polygon, and Cosmos) to access and purchase services on Filecoin (such as data storage and data computation). This interoperability enables developers to add powerful data capabilities to various blockchains, enhancing the functionality and user experience of their applications. For example, the OCEAN Protocol has launched the first data marketplace solution on the FVM virtual machine, connecting buyers and sellers on Filecoin and Binance for more efficient discovery and consumption of datasets. You can learn more here.
Conclusion
The launch of the messaging and token bridging solutions by Axelar and Celer Network on the mainnet marks a transformative moment for the Filecoin ecosystem. The seamless communication and asset transfer features brought by Axelar and Celer create numerous opportunities for powerful data capabilities, cross-chain smart contract calls, asset bridging, and token swaps. This will ultimately drive growth and innovation for the entire decentralized internet.
