Arcana Network Unveils its Chain Abstraction Protocol with New Demo on Aave. Here’s What You Need to Know

The increased proliferation of different blockchains has fragmented the crypto realm. Users routinely find themselves navigating different Layer 1s (L1) and Layer 2s (L2), grappling with complex bridging processes, sifting through multiple gas tokens, and trying to access siloed liquidity. 

As a result, the concept of chain abstraction has gained immense traction since it seeks to remove any UX frictions typically associated with managing multiple blockchains and distancing end users from front-end blockchain processes. Most recently, the Arcana Network unveiled its Chain Abstraction protocol, which is built atop its modular L1 chain. The solution unifies a user’s balances across chains and enables seamless cross-chain transactions.

So, Why Arcana?

Arcana's approach to chain abstraction stands out for several reasons. Firstly, the protocol is compatible with existing wallets, allowing users to utilize their Externally Owned Accounts (EOAs) without having to create new smart contract wallets (SCWs). In fact, by avoiding SCWs altogether, gas fees remain comparable to standard EOA transactions rather than increasing up to 10 times, as with some other solutions.

This compatibility extends to the developer side as well, as platforms (such as Aave, Uniswap) don't need to integrate Arcana's solution into their framework, as it works directly at the account level. The system also handles gas fees in an automated fashion, funding them on the desired chain without the need for any user intervention.

Additionally, the system employs high capital efficiency by using existing liquidity and employing netting settlements to reduce unnecessary bridging transactions, potentially leading to cost savings for users and improved overall network efficiency. 

Lastly, the minimal developer integration required ensures a consistent experience across different ecosystems, as apps don't need to chase users and liquidity across different chains.

A sneak peek into the future!

Recently, the Arcana team demonstrated its Chain Abstraction wallet in conjunction with Aave, one of the largest DeFi protocols in the market today, boasting a TVL of over $13 billion. 

The demo showcased a user connecting to Aave using an Arcana wallet containing funds on the Optimism network. Within a few seconds, the user was able to deposit USDC into a liquidity pool on the Arbitrum chain without having to perform any bridging actions or encounter any complications.

To elaborate, the user simply had to specify the amount of USDC they wished to deposit and confirm the transaction. Arcana's wallet then displayed the total amount to be spent, including gas fees and chain abstraction fees. Upon confirmation, an intent was sent to the solver network to fulfill the user's liquidity needs on Arbitrum. 

The user's USDC was then sent to the network, and a solver transferred the USDC to the user on the Arbitrum chain. Remarkably, the entire process occurred in a single transaction confirmation step, taking less than 10 seconds to complete.

What lies ahead for Arcana?

Arcana has opened sign-ups for its Private Beta, allowing early adopters to experience the future of cross-chain interactions firsthand. Plans are also in place to release more demonstration videos showcasing chain abstraction on popular DeFi and consumer Web3 apps, building anticipation for its full release. 

Other future developments on Arcana's roadmap include onboarding a network of solvers to facilitate liquidity provision, releasing a mobile wallet for on-the-go access, and providing developer SDKs for wallets and apps to integrate the technology more deeply if desired.

Therefore, as Arcana gears up for its testnet and mainnet releases later this year, it is continuing to forge a number of partnerships across the Web3 landscape in the hopes of creating a robust ecosystem. Interesting times ahead!