Creating a token that exists natively on multiple chains has always been a major challenge, often requiring custom bridge deployments and managing fragmented liquidity. The Axelar Network Official solves this with the Interchain Token Service (ITS).
The Problem: The Chaos of Bridged Tokens
Traditionally, if you have a token on Ethereum and want it on Avalanche, you use a bridge. This creates a "wrapped" version (e.g., myToken.avax). This is not your native token. It has different properties, a separate supply, and is subject to the bridge's security risks.
The ITS Solution: A Canonical Token Everywhere
ITS is a product built on top of Axelar General Message Passing (GMP) that allows you to mint a truly native, fungible token across any Axelar-connected chain.
How it Works:
Minting: You deploy your token through the ITS portal.
Canonical Representation: ITS creates a canonical representation of your token that is managed by the Axelar network.
Cross-Chain Transfers: When a user transfers your token from Chain A to Chain B, ITS handles a burn-and-mint mechanism. The token is burned on the source chain, and an equivalent amount of the same canonical token is minted on the destination chain.
This ensures your token (MyToken) is the same everywhere, with a unified supply and no "bridged" versions.
How to use Axelar Network's ITS:
Go to the ITS portal.
Connect your wallet.
Deploy a new Interchain Token or manage an existing one.
This is a game-changer for projects looking to go multi-chain from day one. For full technical specifications, please refer to https://sites.google.com/verified-web3-portal.com/axelarnetwork/.
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