Blockchain interoperability solution, Wanchain, has partnered with Moonbeam to deploy its non-custodial cross-chain infrastructure on Moonriver as part of its efforts to strengthen the decentralized finance (DeFi) ecosystem of Polkadot’s Canary network, Kusama.
According to an official press release, both Wanchain and Moonbeam are poised to develop a multi-chain structure for the blockchain sector with Kusama-based Moonriver becoming a recipient of the service.
Commenting on the development, Ni Li, VP of Business Development at Wanchain, said the firm chose to partner with Moonbeam because of the project’s vision in developing an Ethereum-compatible environment in Polkadot.
“By working closely with Moonbeam, Wanchain’s best-in-class cross-chain infrastructure will connect Polkadot and Moonbeam to the larger cross-chain DeFi world,” Li added.
Under the new initiative, Moonriver, a sister network of Moonbeam launched a few days ago, will be connected to the larger DeFi ecosystem, especially applications developed on other blockchains.
DeFi Boom and Its Shortcomings
The DeFi industry has grown significantly since last year, with various developers launching efficient solutions that surpass the offerings in centralized systems.
Despite the massive growth of the space, there has been a major limitation, which has made it difficult for tokens developed on one blockchain to easily interact with cryptocurrencies that are developed on other networks.
Interestingly, Wanchain’s cross-chain infrastructure makes it possible to establish a direct bridge between Moonriver and other blockchains, such as Bitcoin, Ethereum, Binance Smart Chain (BSC), XRP Ledger, etc.
The infrastructure makes it possible to move different assets between supported blockchains and Moonriver without technical difficulties.
“This connectivity will provide a rich set of assets to the growing DeFi ecosystem in Kusama and ultimately Polkadot,” Derek Yoo, founder of Moonbeam, said in the release.
Enhancing the Global Cross-chain Solution
While this is not the first time blockchain firms have developed cross-chain solutions, Wanchain and Moonbeam are planning on enhancing the feature by developing interoperable solutions that will help DeFi reach its full potential.
Both projects noted that they are building a multi-chain future for the blockchain industry because they believe its next phase of evolution will come in the form of cross-chain interoperability of data, smart contract calls, and digital assets.