[First published in the HIC Newsletter in June 2022]
Probably the biggest technical update in Q2 was Cross-Consensus Messaging (XCM). As we laid out in our Q1 newsletter, bridges between independent blockchains are inherently insecure — and Polkadot fixes this. The go-live of XCM in early May has put theory into practice, as messages can now be passed between parachains while enjoying the same level of security as transfers on the relay chain. The first use case for securely “passing messages” is the exchange of assets across different parachains, but others will follow (think NFTs, identity credentials, smart contracts and other data). It is also a major boost for privacy, as zero-knowledge proof based chains can interact seamlessly with regular ones.
Importantly, XCM is a standardisation Format, not a Polkadot Protocol. Parachains like Moonbeam, Acala and Astar have already enabled it, but any other existing blockchain that wants to escape its “blockchain silo” can adopt the format as well. If a new type of consensus algorithm is invented in the future, such a blockchain may also adopt XCM to plug into the existing network of value. This is making Polkadot extremely future-proof and is bringing us one step closer to Polkadot’s vision of a truly interoperable ecosystem of blockchains.
