Axelar, the decentralized network that is looking into bringing interoperability among the various blockchain ecosystems, has announced that it has raised $25 million in Series A funding from a group of investors led by Polychain Capital and others like DragonFly Capital, Galaxy Capital, and others.
One of the major problems being faced by the developers and users as the crypto ecosystem grows and scales is the fact that different applications reside on different blockchains making it very difficult for the users to switch between applications and blockchains. Tokens and cryptos held in one blockchain cannot be ported over the other blockchains which basically locks the users and their potential into a single blockchain.
Sergey Gorbunov, Co-founder & CEO of Axelar, concluded: “We are delighted to have reached such an important funding milestone, which will allow us to work towards our goal in delivering complete industry-wide blockchain interoperability solutions, including further integrations with other networks. We are thankful for such a vote of confidence in Axelar by our investors and stakeholders, who have recognized the need for scalable cross-chain communication, and believe that Axelar is the one to deliver it.”
The company has been building a network and tools that will help the developers and the users to cross-build and move across different blockchain ecosystems. The company has said that the Axelar Network is currently live in testnet and is being used and tested by Polkadot, Terra, and Avalanche ecosystems. The idea is to see how the users and developers would be able to use the different blockchains and the assets over there in a clean and frictionless manner.
Olaf Carlson-Wee Founder & CEO of Polychain Capital, said: “Axelar’s cross-chain solution is truly groundbreaking for the decentralized economy. We are very excited to help support Axelar’s pioneering blockchain interoperability solutions in leading its investment round. Together, with our shared resources we are looking forward to working with Sergey and Georgios, and the wider Axelar team, in shaping the decentralized economy and blockchain industry for years to come.”
The company aims to build a network that will form a uniform base across various blockchains like Bitcoin, Ethereum, and others which will help the developers to develop their dApps and integrate them with the various blockchains in a smooth manner. This interoperability is going to be key for further growth of the crypto ecosystem which currently has various blockchains that speak different languages. Unless they begin talking to each other that everyone understands, the space for growth would be limited.