Axelar Token Development Company

Axelar Token Development

In 2022, the token was introduced to provide permissionless access to Axelar's network. One billion dollars was AXL's first supply, which will vest in 2026. Three months following the token launch, the team, business, supporters, and community programs all had release schedules in place; the community sale tokens were released earlier and on a faster timeline. The AXL utility token serves the following functions on the Axelar network:

• Paying Axelar transaction costs. Fees for services like developer automation, cross-chain gas conversions, and fast-finality devices that are developed on top of Axelar's programmable interoperability layer are included in this.

• Paying transaction costs on networks that are connected. The required gas tokens for linked chains can be automatically generated from AXL tokens.

• Paying people in the consensus and staking or assigning them to take part.

• Voting on recommendations for governance.

Axelar Token Transaction Flow

Here's how the flow of a token transaction works:

Starting the Transaction

A user initiates the transaction by making an application for the token transfer from one blockchain network to another. Assuming that a user has tokens on Ethereum and wants to send the same to the Binance Smart Chain wallet, it is here where Axelar's network comes into play.

Token Wrapping or Locking

Once a transaction is initiated, depending on the type of asset, the tokens become locked or wrapped at the originating chain. Axelar uses smart contracts that lock the tokens at the origin chain so that no one can move the tokens when the transaction occurs.

Verification by Axelar Validators

Axle set of validators, based on decentralization verifies the user's request in terms of which has to be considered valid in terms of a transaction. The group of Validators will cross-check whether the details of the transaction, such as source and destination addresses, are correct, and whether the locked tokens are safe.

Cross-Chain Communication

Axler's CGP ensures safe communication between the source and destination chains. The CGP guarantees that the message of transfer of the token is delivered safely to the destination chain, eliminating any chances of data loss or manipulation.

Unlocking or Minting Tokens

Once the transaction is confirmed, Axelar unlocks the wrapped tokens or mints equivalent tokens on the destination chain. If the token is native to the destination chain, it is unlocked. Non-native tokens require the minting of wrapped or synthetic versions on the destination blockchain and allow users to hold equivalent-value tokens on the new network.

Transaction Confirmation

This transaction then gets completed as if the same amount of tokens was successfully transferred to the recipient's wallet on another chain. In this regard, Axelar successfully executes a well-smoothed, decentralized, and low-latency transfer of tokens.

User Notification

The recipient will be notified or receive confirmation that his tokens have been transferred successfully. This usually comes through dApps, or wallets, where the assets are notified to the user to be used on the destination chain.

How Does Axelar Token Work?

Introducing New Chains: A distributed threshold mechanism is used by validators to create the master key pair for each new blockchain that is added to the Axelar network. Because it enables the Axelar network to safely sign and validate transactions on the new chain, this key pair is essential for managing cross-chain transactions.

Handling Transactions Across Chains: In the Axelar network, cross-chain transactions adhere to a multi-step process. A chain that crosses when a transaction reaches the gateway contract, the daemon first forwards it to the Axelar network. 

The Use of Threshold Cryptography: A distributed key generation protocol is used to start the process, in which validators work together to create a master key pair for the network. Transactions are then signed using this key pair on behalf of the network. 

Observation and Protection: Axelar offers some tools, such as logs, ledger queries, and events released by nodes and gateway contracts, for keeping an eye on the condition of the network. This enables developers to keep an eye on network operators and identify and address problems instantly.

Steps to Create an Interchain Token with Axelar

ERC-20 Token Generating and Deployment 

Prepare the ERC-20 token with assigned attributes, including the name, symbol, and supply, then create a smart contract, test on the testnet, and deploy on the Ethereum mainnet. After you have deployed your ERC-20 token, you should deploy the contract; you can check your contract by going through the blockchain explorer Etherscan.

Registration and Deployment of Token on Avalanche, Polygon, BNB Chain

You can leverage a blockchain bridge or Axelar's protocol to bridge your ERC-20 token to Avalanche, Polygon, and BNB Chain. Then you deploy wrapped versions of the token on each chain, ensuring cross-chain compatibility. You can sign up the token as an Interchain Token for smooth cross-chain transfers and governance.

Interact with the Interchain Token

Axelar informing layer allows the user to transfer their tokens across chains, stake, or provide liquidity. The token works on DeFi platforms as well as dApps on Avalanche, Polygon, and BNB Chain. Apart from this, even holders get a chance to participate in governance concerning cross-chain and earn rewards.

Why Choose Osiz for Axelar Token Development?

Osiz is a leading blockchain development company specializing in Axelar token solutions with frictionless cross-chain interoperability and safe transfers of tokens. We have experienced developers who have already developed and deployed various ERC-20 tokens over several blockchain networks, such as Ethereum, Avalanche, Polygon, and BNB Chain. At Axelar, we use advanced cross-chain communication protocols to develop the most secure, scalable, and efficient interchain tokens. With a customer-centric approach, we provide services ranging from smart contract development to cross-chain integration and ongoing support. Osiz is a cutting-edge technology-based company with a robust infrastructure and a proven track record of delivering the most reliable blockchain solutions.