A key irony of the big experiment of decentralized finance has cropped up: we have constructed a new global financial system consisting of digital islands. Each Layer-1 blockchain, be it Ethereum, Solana, or any part of the Cosmos ecosystem is like a digital nation on its own. They both have their own language and their own rules as well as their own communities of loyal developers. This is the great discontinuity. Liquidity which is very vital in any market is stuck in remote locations. Programs implemented in one language, e.g. Solidity, cannot interact with programs implemented in another, e.g. Rust. It is the contemporary Tower of Babel and the central challenge, which Injective wants to deal with. It is not merely the solution to build a bridge but to establish a central marketplace a single central hub where assets, developers and applications of all ecosystems can all interact with each other and naturally trade.
This vision was based on a strategic choice. Injective used its position as a sovereign blockchain utilizing the Cosmos SDK to be granted a kind of passport within an entire confederation of chains. It is also interoperable with the Inter-Blockchain Communication (IBC) protocol, which is a trust-minimized standard and can be used as a secure highway system to connect it to other 115 blockchains in the Cosmos network. This is Level-1 interoperability. It enables the assets within the Cosmos Hub such as ATOM to circulate freely on the exchanges of Injective without a custodial centralized bridge. Nonetheless, this united the Cosmos nation-states, but the most liquid places of Ethereum and Solana were left alone.
To be able to access these external ecosystems, Injective establishes Tier-2 interoperability by a network of bridges. This consists of the committed Injective Bridge, which was formerly referred to as Peggy, to connect to Ethereum and an integration with the Wormhole bridge to connect with non-IBC chains such as Solana, Avalanche and more. This dual strategy of native IBC and external bridges deals with the issue of assets; it forms the on-ramps to ETH, wBTC, and SOL to take off their native chain to Injective. When there, they are tradable on its on-chain order book that is high-performance. However, this is not the whole problem. The transfer of assets is one thing; it is yet another to entice the developers and applications that will take the assets to productive use.
It is at this point that the Multi-VM strategy of Injective is a critical step above the mere asset bridging. The target is to establish a single environment in which it is possible to execute smart contracts written in various languages simultaneous with each other, more importantly, to interact with each other. It is essential to know the development of this strategy. It started with inEVM, a Layer-2 rollup implementation written in conjunction with Caldera based on Arbitrum Orbit stack. This Layer-2 was also an essential sandbox that enabled Ethereum developers to run their Solidity-based applications in a familiar environment that rebalanced onto the Injective Layer-1. This was the testing ground.
The mainnet introduction of native Layer-1 EVM support was, in fact, the real breakthrough. It is not a distinct and independent rollup. It is one of the architectural milestones according to which the Ethereum Virtual Machine (EVM) can fit well on the native WebAssembly (WASM) environment of Injective right on the core blockchain (the Layer-1). This is where the Multi-VM roadmap will be soon integrated with the Solana Virtual Machine (SVM) too. It is aided by a MultiVM Token Standard which is known as the magic. This guarantees that an asset produced by an EVM contract or a WASM contract is represented in only one way. It does not require manual bridging between environments of users.
This is the end in itself to a trader. A dApp in EVM (built with Ethereum) can immediately communicate with a native Injective protocol in WASM. With a single line of code to change, a developer can deploy their tested Solidity code and have it automatically integrated into the core of the MEV-resistant order book module of Injective and be able to tap into the combined liquidity of the entire ecosystem. Such a strategy will transform Injective not only into an asset destination but also into a real development hub. Discussing the disintegration of DeFi, rather than building another walled garden, is a bold step towards building a universal translator to finance, a Rosetta Stone of money.
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