Axelar, a cross-chain protocol, has introduced a product called the Interchain Token Service (ITS) with the goal of improving the interoperability of ERC-20 tokens across all chains that are compatible with Ethereum. Interchain Token Service, built on the fully interoperable Axelar network, eliminates this manual process by providing developers with smart contracts and a set of tools to easily manage Interchain Tokens.
Why Interchain Token Service is a game changer
The Interchain Token Service generates Interchain Tokens, which can be used in any application that supports the Ethereum Virtual Machine (EVM). It enables the sending of tokens between chains and building of asset bridges. In addition, asset transfers can be implemented in your interchain dApp, and many other use cases are possible using Interchain Tokens.
For Web3 apps, facilitating cross-chain transfers has traditionally required using bridged token versions. However, these often face limitations with compatibility and have presented security risks. Axelar’s interoperability solution helps developers handle interchain tokens with the help of specialised smart contracts and a software development kit.
One of the first DEXs to use the service and implement the “interchain tokens” is decentralised exchange, Sushi. Using the Interchain Token Service, Sushi will make its native token, SUSHI, fully interoperable on all supported blockchains. Interchain SUSHI tokens will initially be compatible with the Arbitrum, Ethereum, Optimism, and Polygon blockchains. By using a single-click deployment and update mechanism for Interchain Tokens, Sushi can efficiently manage its multichain deployments.
If you want some Interchain Tokens, the first thing you need do is go to the Interchain Token Portal. Simply link your wallet, choose the network from which you wish to deploy an ERC-20 token, and confirm your action. Select an initial supply amount, or go for the flexible advanced option that lets you add more coins at a later date. The new token can be added to any existing chain. You can now use your ERC-20 token across different networks.