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Router Protocol, a decentralized blockchain network backed by Coinbase Ventures, is improving cross-chain functionality through a new integration with Solana.
The partnership improves cross-chain interactions, allowing users to access multiple blockchain ecosystems and enhance decentralized applications, according to a press release shared with crypto.news.
This move allows the Solana (SOL) ecosystem, including its decentralized exchanges, non-fungible token markets, and decentralized finance projects, to connect with other major blockchain networks such as ethereum (eth), Avalanche (AVAX), and Polygon (POL).
Router Protocol is a decentralized tool for cross-chain communication. Basically, it helps blockchains interact with each other. This is important because many blockchains operate in isolation, limiting their ability to share assets, data, or services across networks.
By integrating with Router, Solana users and developers can now interact with more than 25 other blockchains, expanding its reach and liquidity, according to the statement.
The Solana ecosystem
Solana has built a strong presence in DeFi, nfts, and even meme coins. Major DeFi projects like Jupiter (JUP) and Raydium have a total trading volume in the billions, while nft marketplaces like Magic Eden have minted millions of nfts.
However, despite this growth, Solana has faced challenges due to its unique Proof of History consensus, which has limited its interoperability with other networks.
Why cross chain is important
Cross-chain functionality allows different blockchains to interact, opening up new opportunities for users and developers. For example, Solana decentralized applications can now transact across multiple chains from a single interface.
This includes tasks such as exchanging tokens, staking assets, or exchanging nfts on different networks, simplifying the user experience.
Router Protocol launched its Layer-1 solution, Router Chain, in July to enable cross-chain interoperability between bitcoin, ethereum, and the Cosmos (ATOM) ecosystem. The launch introduced chain abstraction technology, allowing developers to create decentralized applications for cross-chain money markets and omnichain tokens.