Blockchain interoperability goes beyond moving data from point A to B — Axelar CEO Sergey Gorbunov

Cross-chain communication between blockchains is more than just moving data from point A to B, but how it can connect applications and users for improved experiences and lower gas fees in Web3, Sergey Gorbunov, co-founder and CEO of Axelar Network, outlined in conversation with Cointelegraphs business editor Sam Bourgi on September 28 at Converge22 in San Francisco.

As the crypto industry has evolved in recent years, blockchain interoperability has seen an increase in demand, attracting venture capital and welcoming players, such as Axelar, which reached unicorn status in February. According to Gorbunov, the company, founded in 2020, started with a premise that cross-chain and multi-chain features would come to define the crypto space. “The idea is not just to talk about how to connect A to B, but how to connect many to many, right? How to connect everyone to everyone else. And that includes applications and includes users,” he explained.

Interoperability is a buzzword in the crypto industry that refers to the ability of many blockchains to communicate, share digital assets and data, and work together, thereby sharing economic activity. As an infrastructure, interoperability is essential for wider use of the technology, as Gorbunov explained:

“We need an ability for the user to execute a call on one chain, and that transaction actually take place on other chains without them having to go and get a native token of that chain, pay gas, execute themselves and move it back and forth .”

Axelar’s CEO highlighted that beyond better experiences for users, interoperability also means higher financial results, as interoperable chains can have unified liquidity and thus spend less on gas fees for transactions. “Our Web2 experience is much simpler, and we need to get to the same level in Web3 with simpler experiences, and that’s what cross-chains enable us to do, to help build these simple experiences.”

Related: Circle Product VP: USDC chain expansion part of ‘multi-chain’ vision

At Converge22, Axelar was announced as one of the networks to integrate with Circle, the fintech company behind USD Coin (USDC) and Euro Coin (EUROC). Circle is launching a new cross-chain transfer protocol to help developers build frictionless experiences for sending and transacting USDC across blockchains.

Earlier this week, Axelar revealed a partnership with Mysten Labs, the infrastructure company behind the Sui blockchain, to deliver cross-chain communication for developers through General Message Passing and advance the prospect of a so-called “super DApp.”

Writer and editor Sam Bourgi contributed to this story.