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Polygon and Cosmos blockchains to be connected by Union Labs, MATIC, ATOM react positively

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FXStreet in Market News 12 384992
April 18, 2024 22:09

content provided with permission by FXStreet

  • Polygon and Cosmos blockchain ecosystems will be connected by a layer, Union Labs. 
  • Union Labs will connect Polygon’s AggLayer with Cosmos ecosystem’s Inter-Blockchain Communication Protocol. 
  • MATIC and COSMOS price added nearly 2% gains on Thursday. 

Polygon blockchain’s aggregation layer (AggLayer) and Cosmos’s Inter Blockchain Communication (IBC) will be connected via Union Lab’s proposed solution. The modular interoperability layer is expected to ensure a smooth flow of liquidity between the two large blockchain ecosystems. 

Union Layer could connect Polygon and Cosmos in this manner

DeFi users and traders using Layer 2 scaling solutions could benefit from a greater access to liquidity and movement between projects like Polygon and Cosmos. 

Union Labs plans to power one such integration through a modular interoperability layer. The solution will ensure a smooth flow of liquidity between the two chains and maintain a unified architecture. It will offer a simple user experience (UX) for traders. 

Polygon’s AggLayer is a bridge that unifies liquidity across projects and Cosmos’ IBC handles the authentication and movement of data between blockchains. Connecting the two chains is set to unlock a useful solution for web3 users and unlock greater freedom and flexibility in the ecosystem. 

In a real-world use case, traders use AggLayer to buy NFTs or swap tokens in an easy manner, without additional steps of connecting to bridges and IBC allows traders to improve their trading strategies across various blockchains, ensuring smooth communication between different chains. 

Marc Boiron, CEO of Polygon Labs, told FXStreet, “Union’s integration into the AggLayer is a significant milestone for both the Polygon and Cosmos ecosystems leveraging the AggLayer’s unique architecture to unlock modular and monolithic benefits for both ecosystems. It streamlines liquidity flow for current projects and users while catalyzing innovation.”

MATIC and COSMOS prices surged nearly 2% in the past day.