Polkadot Merges XCM to Connect Different Consensus Systems

• XCM version 3 is now deployed, which was 15 months in development.
• XCM works across chains, smart contracts and non-fungible tokens (NFTs) and supports communication between networks with different consensus mechanisms.
• XCM design offers instructions on how to compose, send, and interpret messages across chains.

On Tuesday, 17 January 2023, the Polkadot network finally merged XCM version 3. XCM, which stands for Cross-Consensus Message, is a language by which different consensus systems can communicate. It was developed by Polkadot founder Gavin Wood and has been in development for fifteen months.

XCM works across chains, smart contracts and non-fungible tokens (NFTs). It supports communication between networks with different consensus mechanisms, like between Bitcoin and Polkadot. This enables bridges, cross-chain locking, exchanges, NFTs, conditionals, context-tracking and more.

The XCM design offers instructions on how to compose, send, and interpret messages across chains. The destination chain is the one that executes the instructions, with support for both on-chain and off-chain processing. On-chain processing is done via the native runtime of the destination chain, while off-chain processing is performed by a third-party service.

In addition, XCM allows for the creation of custom messages, which can be used to bridge together two different markets, such as DeFi and CeFi. These messages can be used to transfer tokens, execute smart contracts, or even to send messages across different networks.

XCM is also compatible with other blockchain and smart contract-based protocols, such as Ethereum. This allows Polkadot to communicate with other chains and smart contracts, allowing users to interact with multiple networks without having to move their funds.

Ultimately, XCM helps Polkadot achieve its goal of becoming the go-to platform for decentralized applications. With XCM, Polkadot will be able to bridge different networks and protocols together, allowing users to move between different networks and platforms without having to worry about the underlying technical complexities.