Greetings dear blockchain enthusiast!

Welcome to the latest Multichain Matters newsletter. I’m thrilled to share our recent progress and milestones achieved with the t3rn protocol, your go-to platform for efficient and seamless cross-chain executions.

Read time: 2.28 minutes, 3.5 if you are a slower reader ;)

🤔 Why You Should Stop Ignoring Layer 2 Solutions

In the fast-changing world of blockchain technology, challenges such as scalability, transaction costs, and interoperability become more apparent as networks expand. These limitations hinder the widespread adoption and real-world use of blockchain technology. Layer 2 solutions represent pioneering protocols intended to tackle these problems by optimizing the scalability of blockchain networks.

In this article, we cover the complexities of Layer 2 solutions, examining their algorithms, economic implications, and prospective developments. Whether you're an enthusiast of blockchain or a well-versed developer, comprehending Layer 2 solutions is indispensable for those eager to comprehend the future of blockchain technology.

Read the full article: https://www.t3rn.io/blog/layer-2-solutions-guide

🔗 The Rise of DeFi and Its Monumental Growth

The DeFi (Decentralized Finance) movement has significantly impacted the financial landscape, offering a decentralized and inclusive alternative to traditional finance. While Bitcoin kickstarted this movement in 2009, Ethereum's introduction of smart contracts in 2015 paved the way for DeFi's monumental growth.

In this blog post, we explore the evolution of DeFi, including its rise and adoption by established institutions, discovering the world of Cross-Chain DeFi, discussing its benefits, challenges, and innovative solutions like t3rn.

To learn more about it, follow this link: https://www.t3rn.io/blog/cross-chain-defi

🧪 GMP Protocol Integration on t0rn Testnet

We've successfully rolled out the General Message Passing (GMP) protocol on the t0rn testnet parachain on Rococo. This integration has ushered in an array of supported operations between t3rn and its connected chains. We're talking about functionalities like Order Commits and Reverts, the capability to mint chosen assets via our bridge, and versatile generic calls.

The t3rn protocol accommodates both orders and reward payments across origin and target chains. This results in four operational combinations:

a. Remote Order with Remote Reward:

• Facilitates orders from chains like Ethereum to be executed on target chains with rewards accounted on Circuit. Assumes target account signed by user from Remote chains like ethereum, to have enough funds to cover for order on Circuit.

• Mechanism involves users, executors, and circuit validation based on a stepwise sequence.

• The process demands users to provide signed target accounts with sufficient funds on the Circuit. With this setup, users can leverage wallets native to their chosen platforms, including Metamask, Hardware wallets, and the Polkadot JS extension.

b. Remote Order with Local Reward:

• Uses a bidding system for executors to streamline reward distribution and avoid overlaps. Based on the open market, bidding executors not only drive the cost user pays for orders lower, but also ensures executors won’t step on each other's toes when eyeing the same reward.

• Rewards to executors are released after attestations of the trustless, verified against the on-chain light client, execution on the destination chain.

c. Remote Bridging:

• Allows for asset bridging where rewards are deducted on the Circuit.

• Suitable for like-for-like asset bridging, ensuring a 1:1 minting ratio and a safe confirmation timeline.

d. Local Order with Local Reward:

• Lets users order directly on the same chain.

• A nod to DEX platforms like Uniswap, but with a unique twist. Instead of relying on locked liquidity pools, it draws from the intrinsic resources of executors to fulfill orders. For users, this translates to a cost-effective solution: average gas fees for ERC-20 swaps stand at 60k, and for Ethereum-involved assets, it's around 50k. This is substantially more efficient than the typical Uniswap cost of approximately 190k gas.

🚨 In case you missed it…

Here is my presentation at sub0 where I share our approach to trustless oracles, through the integration of Eth2 light client data.

t3rn recognized as a Top Polkadot Parachain by Polkadot Insider!

Want to influence our next edition? Tweet me your ideas @Maciej_Baj and be a part of the Multichain Matters content journey.

Maciej Baj
Founder and CTO of t3rn