Since the inception of blockchain, liquidity across chains has been fragmented. Users deposit money into many chains in order to take advantage of different opportunities. Nonetheless, smooth liquidity movement between these networks is necessary to support ecosystem growth.

Interoperability protocols are used to improve user experience while traveling among the hundreds of blockchains available by bridging liquidity gaps.

One of the most popular cross-chain methods for linking blockchains is called Wormhole.

What is Wormhole?

Wormhole is a general message carrying protocol that allows blockchains to communicate with one another. It enables developers and users of cross-chain applications built by developers to leverage the advantages of multiple ecosystems.

Wormhole serves as a channel of communication between rollups or blockchains; it is not a blockchain in and of itself. Although there are protocols built atop Wormhole that provide this function, Wormhole itself is not a token bridge.

How messages (transactions) are passed through Wormhole:

~ Users send messages to the Wormhole Ecosystem

~ The Guardian nodes closely examine the transactions.

~ The nodes are able to reach the Quorum in a matter of seconds.

~ The verified message is available to the public via the Guardian nodes.

~ The message can be viewed on the chain of destination

What Wormhole Can be Used For

Cross-Chain Exchange: Wormhole Connect enables developers to create an exchange that accepts deposits from any chain that is linked to Wormhole, greatly boosting the amount of liquidity available to their consumers.

Cross Chain Governance: A collection of NFT collections on several networks may select a "voting" chain and utilize Wormhole to transfer votes from their separate chains to the voting chain if they wished their holders to vote on a combined proposal.

Cross-Chain Game: A game might be developed and played on a network with high performance, such as Solana, and its prizes could be distributed as NFTs on another network, like Ethereum.

Wormhole was established by Jump Trading Group's arm, Jump Crypto. The protocol was initially introduced in 2021 as a token bridge that allowed tokens to be transferred across blockchains, most notably between Ethereum and Solana. Later, Wormhole underwent a more broad evolution with Wormhole V2, becoming an interoperability layer that decentralized apps and chains could readily build upon.

Across the 29 chains that Wormhole supports, the Wormhole ecosystem now consists of over 200 decentralized apps. Since its launch, the protocol has handled over 1 billion cross-chain communications, and it still handles over 125,000 messages per day, transferring $33 million on average between chains.

Wormhole Suite of Products

Wormhole Gateway

Wormhole ZK

Native Token Transfers

Wormhole Queries

Wormhole, which was developed to address the current issues facing the cryptocurrency space, offers investors a formidable way to realize the full potential of this rapidly expanding sector. The platform facilitates the transfer of assets between blockchains, the creation of DApps, and creative access to DeFi solutions for users. Wormhole is a straightforward, extremely engaging, and user-friendly blockchain channel that aims to satisfy investment needs. Furthermore, the ecosystem provides access to strong instruments and services for bridging needs.