Across Protocol (ACX) is a fourth-generation bridge ecosystem. The network is a pioneer in the use of intents that enable seamless and efficient smart contract execution over multiple blockchains. Here’s everything you need to know about Across Protocol, what makes it unique, and how it could help to solve some of crypto’s biggest issues.
What Problems Does Across Protocol (ACX) Solve?
Across Protocol seeks to reduce or eliminate several issues that have long plagued blockchain users. The network was built from day one to provide full interoperability within the crypto space. As one of the first intent-powered blockchains, Across Protocol supports seamless and efficient data and value exchange across blockchains.
Connect L1 and L2 Networks
Another major advantage of Across Protocol is its ability to connect L1 and L2 networks. Many L2s were purpose-built to serve only one network. Across protocol allows multiple networks to leverage the benefits of each system and enjoy instant asset transfers between L2s and Ethereum.
Benefits of Across Protocol (ACX)
Many benefits make Across Protocol a popular option in the market today. For example, the platform provides excellent scalability by connecting the fastest and most capable blockchains via intents.
Cost-efficient
Developers and end users save when they use Across protocol versus traditional L1 and L2 options. Many users agree that Across Protocol provides low-cost transactions and secure bridge options that make it stand out against the competition.
Liquidity
Bridging together networks also has the benefit of combining liquidity. Across Protocol users can always access deep liquidity across the entire DeFi ecosystem due to the network’s multi-chain capabilities. As such, traders and developers have found Across Protocol to provide a reliable solution to liquidity islands.
Innovation
The ability to create intents that operate across blockchains opens the door for developers and users to create more powerful and effective Dapps. Already, Across Protocol is pioneering the crypto space by integrating intents into its core coding. In the future, the network will continue to expand its interoperability to include other major blockchain networks.
Instant withdrawal
Instant withdrawals are another reason why many people prefer Across Protocol. The network provides top-notch capital efficiency without delay and can scale to meet the needs of the growing blockchain sector. As such, it’s becoming a popular DeFi option.
No-slippage Fee Model
Slippage occurs in the Defi sector when an order is placed and filled with a slight price difference. Slippage is common when you eliminate the use of a centralized order book. It’s a major concern for DEX users and can cost traders thousands in fees over time. Across Protocol introduces a zero slippage alternative to the market that saves traders money and helps them get the most out of their maneuvers.
How Does Across Protocol (ACX) Work?
The Across Protocol is an ERC-based network that was created to help connect Ethereum’s best and most active platforms to other crypto ecosystems. To accomplish this task, the development team created some unique features, including integrated cross-chain intents, settlement layers, and programmability.
Intents – Across Protocol (ACX)
Intents are a technology that allows users to dictate transactions across blockchains from a single network. These mechanisms rely on protocol actions rather than just connecting blockchains. Notably, Across Protocol introduced a new tokens standard, ERC-7683, designed specifically to fill cross-network intent and prevent relayer fragmentation.
Optimistic Oracle
The UMA-powered optimistic oracle plays a vital role in ensuring the validity of transactions across networks. This system can initiate price requests, provide dispute resolution, and monitor all transactions in real-time. Optimistic roll-up systems work by integrating a trusted verification node and fraud proofs. These systems improve performance and increase privacy for users. They’re called “optimistic” because of their approach. Optimistic systems start off by assuming all transitions are correct to increase scalability before doing a sequencer correction that corrects the state root and reverts all invalid transactions to their source.
Relayers
Relayers are another core component of the Across protocol ecosystem. Relayers conduct intents and other tasks in exchange for rewards. They are automatically monitored for quality and the best are pushed to the forefront.
Bonded Relayers
Bonded relayers serve one main task which is to give out 2-hour short-term loans to L1 users. These loans are repaid using funds generated from the liquidity pool which gets refilled constantly by L2 transactions. This structure ensures speedy repayment and open access to users without lowering performance.
Liquidity Pools
Across protocol, leverages a large liquidity pool that has transactions from the L1 and L2 networks entering and exiting. Liquidity pools provide rewards for funds locked based on the amount of funds the user places in the pool. Notably, Across Protocol developers went to great lengths to simplify the liquidity provisions process so that new users can leverage its benefits.
Token – ACX
ACX is the main utility token for the Across Protocol. This token is used to pay fees, participate in the liquidity pool, and as a reward token. This versatile digital asset is also a key component of the governance system.
Across Protocol (ACX) Governance
Across protocol uses a community governance system that allows users to stake their tokens to vote on proposals. Any staked token user can put forth platform suggestions via proposals. The ones that get approval from a community vote gain access to the community treasury, streamlining their implementation.
Bottom Line
The Across Protocol is the perfect example of how developers are changing their focus from creating new features to connecting the market’s vast offerings securely. As such, the streamlined bridge feature and secure options make Across Protocol a wise solution for both users and developers seeking lower fees and more scalability.
