Advantages of xDapps

Here are a few xDapp features that are making an impact across blockchain technologies:

  • Expanded User Base - Rather than being limited to the users of one blockchain, any user on any blockchain in the ecosystem can interact with an xDapp.

  • Unified Liquidity - Liquidity fragmentation is a major problem in the current ecosystem. Unlike traditional tokens, xAssets can be pooled and moved anywhere.

  • Decentralization - Cross-chain solutions today usually involve centralized exchanges or bridges. However, Wormhole has been designed to be decentralized from day one, and eventually totally trustless.

  • Increased Performance - xDapps are able to utilize the strengths of each blockchain. With xDapps, expensive computations can be offloaded onto high-performance platforms, final settlement can take place on a preferred chain, and data can be stored wherever is cheapest.

  • Broader Market Reach - Because xAssets move freely through the ecosystem, they can be listed on a variety of exchanges and custodied on any blockchain.

  • Increased Extensibility and Composability - xDapps can utilize anything across the ecosystem, including other xDapps, expanding upon the composability and openness of smart contracts.

  • Futureproofing - As new environments and protocols join the decentralized ecosystem, the connected nature of the Wormhole ecosystem allows existing protocols to expand and support them.

Now that you have an understanding of what xDapps are and the advantages they offer, let's move on to the next chapter where we will delve into how Wormhole works and how it enables the creation of these next-generation protocols.