Avalanche (AVAX) claims to have enabled an innovative feature in its ecosystem with an update. Sub-networks can now communicate directly with each other, facilitating new uses.
A well-known challenge in the crypto industry is to connect truly incompatible blockchains. So-called wrapped bridges or tokens are typical solutions for this task, but they have their weaknesses. Avalanche (AVAX) now reports that it has found its own answer for its ecosystem. An official blog post explains how Avalanche Warp Messaging (AWM) works and why it is an innovation.
Namely, AWM is directly integrated into virtual machines under the Rust and Golang programming languages with which Avalanche organizes smart contracts. These self-processing and automated contracts are powering use cases ranging from decentralized finance (DeFi) to blockchain gaming. With Avalanche, it is possible to run such applications in a subnet, that is, in a technologically closed environment based on Avalanche. Until now, AVAX subnets had to develop individual solutions to communicate with each other, for example to move messages or credit from one application to another. With Avalanche Warp Messaging, a standard is being rolled out that can be flexibly adapted to specific needs.
In this way, the nodes of an avalanche subnet can themselves determine which other subnets they accept messages from and set obstacles such as an approval rate. This allows AVAX subnets to protect against unintended involvement in pass-through. But if swapping is desired, according to the blog post, Avalanche devs now have a powerful tool with AWM to connect their subnet projects with others. Avalanche speaks of a new level that subnets are reaching that should increase the attractiveness of the ecosystem. Cross-staking is cited as an example where Avalanche Warp Messaging could show its strengths.
Conclusion: Avalanche with technological progress – but the price curve stagnates
The 2022 crypto year has destroyed a lot of trust due to the bankruptcy of FTX and the collapse of the Terra (LUNA) ecosystem, and the Decentralized Finance (DeFi) division, which is important to Avalanche, has also been hit hard. touched. In February, more than US$10 billion was still deposited for DeFi under AVAX, according to DefiLlama, it is currently just under US$800 million. Indeed, Avalanche Warp Messaging is a factor here that greatly simplifies new and existing use cases. However, the news of AWM’s launch was unable to provide a noticeable boost to the AVAX price curve, Avalanche is trading almost unchanged at around US$12, as low as it was in January 2021. It remains to be seen whether AWM will also be accepted by the developers in practice and then demonstrate the progress announced by Avalanche. In theory, at least, Avalanche Warp Messaging is a solution the ecosystem can use to outperform its competitors.
