Avalanche News
Router Protocol Integrates Avalanche into its Cross-Chain Protocol
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The Avalanche blockchain has been receiving growing adoption over the past few months. Avalanche now ranks as one of the top blockchain networks for decentralized finance (DeFi). To boost adoption from DeFi protocols, Avalanche has now announced a partnership with the Router Protocol.
Router Protocol is a platform supporting the development of cross-chain infra primitives. The protocol seeks to achieve interoperability between layer one and layer two blockchains.
Router Protocol integrates Avalanche
The Router Protocol has announced its integration with Avalanche’s c-Chain. Through this integration, the platform hopes to bolster communication between Avalanche and the other blockchains supported by the protocol.
The Router Protocol already supports Polygon and Binance Smart Chain (BSC). The two are some of the largest networks, and they command a significant share of the DeFi total value locked (TVL). Therefore, this partnership will allow Avalanche users to interact with these blockchains, creating convenience.
Through this integration, users on the Avalanche network can purchase digital assets on Polygon or BSC without leaving the network. As a cross-chain protocol, the Router protocol allows users to exchange data between blockchains that do not necessarily interact with each other.
The integration will happen on Avalanche’s c-Chain. C-Chain is also known as Contract Chain, and it is among the three major chains that have been developed on Avalanche. The other three chains on the network are Exchange Chain (X-Chain) and Platform Chain (P-Chain).
Each of these chains is validated, and they involve a single primary network. The X-Chain enables users to develop and exchange assets, while P-Chain facilitates the development of smaller networks known as subnets. C-Chain supports developers by deploying smart contracts that will support the creation of products and services based on Avalanche.
Users will realize many benefits from this integration. The first benefit is lower costs in transferring native assets between blockchains. For example, a user can now transfer native assets such as Avalanche’s AVAX and Polygon’s MATIC without using third-party platforms. The protocol also removes the need to use a centralized exchange that charges a fee for every transaction.
The other benefit is boosting the speed at which users can transfer digital assets from one blockchain network to the other. The Router Protocol will allow the settlement of transactions between the supported blockchains in under a minute.
The Router Protocol will do most of the work in facilitating asset transfer between different blockchains. The protocol will match trades between decentralized exchanges (DEXs) on the supported blockchains. It will also charge the lowest fees and rates.
For instance, if a user on the Avalanche network wants to exchange AVAX tokens to MATIC, the Router protocol will analyze the two DEXs based on the Avalanche network and use the one that charges the lowest fees.
Achieving a multi-blockchain future
The co-founder of the Router Protocol, Ramani Ramachandran, noted that developing these products would allow the broader cryptocurrency sector to achieve a “multi-blockchain” future. This future will involve a series of interconnected blockchains supporting similar products and services. These blockchains can complement each other.
“As blockchain ecosystems continue to grow, they are becoming increasingly siloed and unconnected from each other, preventing the industry from reaching its full potential,” Ramachandran said.
The Router Protocol is also growing, and it has achieved several milestones. One of these is the closure of a $4.1 million funding round. The funding round was supported by some of the largest players in the space, including Coinbase Ventures and QCP Capital.
The Router Protocol is also launching a software development kit. This kit will enable developers to create dross-applications that can run across different blockchains.
