The Polkadot Parachain and how Composable will Define the Web 3.0 Interface
The actualization of Gavin Wood’s vision for cross-chain interoperability is upon us with the release of Polkadot parachains.
With it, I’d like to present our vision for why cross-chain communication matters beyond the simple connection of various siloed ecosystems, and pertinently, how our team at Composable Finance is working to build out solutions in line with Wood’s vision and our radical ambitions for the future of DeFi. .
Cross-chain communication is not just about one’s ability to transfer assets and propagate messages across different ecosystems. Of course, this is the primary focus of our infrastructure.
However, what this cross-chain communication infrastructure births is generalizability and blockchain-agonistic behavior.
Cross-chain technology by its nature enables the movement of assets between multiple and differing chains. By leveraging this technology to create blockchain-agnostic functionality, we can abstract away all of the complexity involved in this process to seamlessly craft all functionalities within the DeFi space together.
Currently however, we see several fragmented hubs for cross-chain communication. Yet the way our team sees it is underpinned by a very powerful yet simple thesis. If cross- chain communication can not only be adaptive to the creation of new ecosystems and upgradable to consensus state within these ecosystems (and importantly is scalable), then it has the potential to drastically evolve application user experiences for executing on the specified function.
This realization of the blockchain-agnostic user experience for DeFi users, the broader Web 2.0 ecosystem, and traditional finance is what Composable Finance will enable with its cross-chain infrastructure.
The Vision
There are many different components to Composable that we have made clear over the past few weeks. As I mentioned in our vision statement, the realization of the extensiveness of Composable is delivering the infrastructure necessary for cross-chain communication protocols to be able to tap into a single networking fabric.
We will accomplish this in the following manner:
The Picasso parachain serves as the finality layer for the facilitation of cross-chain interoperability. Our Kusama parachain will therefore act as the place for creation and deployment of any number of cross-chain functionalities and applications, with Mosaic serving as a liquidity layer across EVM-compatible ecosystems, and Centauri connecting Picasso to the IBC-enabled ecosystem. Thus, the Picasso ecosystem will become a fulcrum of cross-layer and cross-chain asset transfers and communications, all from a single unified point of access.
The Composable Parachain on Polkadot enables us to leverage this cross-chain interoperability to deliver blockchain-agnostic functionality across multiple ecosystems.
Polkadot itself serves as a critical basis to underpin our infrastructure and its blockchain-agnostic capabilities. To facilitate blockchain agnostic communication, a higher security environment is necessary to ensure such transfers such communication is not only issued from a source, but also passed on to a routing layer that allows for a decentralized pathfinding methodology. In short, the part of our infrastructure that provides an accessibility layer to access our infrastructure and is the unification of isolated pieces that comprise our holistic approach to cross-chain communication requires the high-security model that comes with Polkadot parachains.
I have already alluded in the past to the role of pallets on Picasso such as Centauri. These pallets that choose to be upgraded to our Polkadot parachain will in actuality exist on both ecosystems.
Critically, our innovations of XCVM (cross-chain virtual machine) and Routing Layer further enable cross-chain solutions to power blockchain-agnostic functionalities. These are some of the components that will thrive on our Polkadot parachain, and that will not exist on our Kusama parachain.
The Composable XCVM allows for cross-ecosystem communication with our layer/innovation availability layer (IAL), anchored to our finality layer that is the Composable parachain.
Reconciled, the pieces of this XCVM provide a single developer-friendly interface. By doing so, we orchestrate the interaction with different bridges, manage routing, initiate callbacks into smart contracts, reliability, and finality.
Think of the Composable XCVM as a compiler and conductor that orchestrates and generates codes for different operating systems seamlessly. In this case the Composable XCVM interfaces and communicates with several ecosystems through a network of bridges, mindful of specific parameters that users and developers alike can specify.
The specified parameters are then propagated to the Routing Layer, which generates an incentivized pathway selection to allow for users to perform actions, in an ecosystem agnostic manner. This layer will assess all of the possibilities for a given action across all potential layers and chains, and efficiently selects the most optimized pathway for the end user.
Combining this technology with the enhanced security through the Polkadot offering, enables our team to paramount the truest blockchain-agnostic functionality. Users and developers can thus do more than just moving their assets around between different applications on different chains that they select. By specifying their end goals, users and developers our infrastructure orchestrates the most efficient pathway irrespective of chain or application. This results in the maximization of yield, and the most efficient deployment of functions across suitable ecosystems.
This means applications themselves can run on multiple different blockchains, and have their different components communicate with one another.
Thus, we abstract away all current complexities in cross-chain movements, powering different blockchains to run in the background in a way that does not obstruct users or developers, and instead powers complete freedom of opportunity for DeFi users.
Summary
Composable Finance’s technology will push the boundaries of cross-chain communication towards its destined role — the framework with which blockchain agnostic applications can be born.
The result is a compounding of the benefits associated with the different ecosystems that comprise Web 3.0 as a whole.
Our Kusama parachain, Picasso, will serve as an hub to support cross-chain transfers and communications. Our Composable parachain, will allow us to take this infrastructure to advanced blockchain-agnostic capabilities.
By combining our cross-chain technology with the superior security of Polkadot, we are able to create generalizability in the DeFi space, where applications can be deployed and used across different chains.
In short, the Composable parachain will abstract away complexity in DeFi, providing accessibility to newcomers and unlocking an unprecedented degree of utility for users to be able to navigate the space in an ecosystem-agnostic manner.
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