Integration with Polkadot

Acala’s technical architecture is built upon Polkadot’s innovative multi-chain framework, allowing it to achieve scalability, interoperability, and security. As a parachain, Acala leverages Polkadot’s relay chain, which provides shared security and seamless cross-chain communication.

Shared Security

Polkadot’s relay chain ensures that all connected parachains, including Acala, benefit from a unified security model. Validators on the relay chain collectively verify transactions across parachains, significantly reducing the risk of attacks such as double-spending or chain reorganizations. This shared security allows Acala to focus on developing DeFi solutions without the burden of independently securing its network.

Cross-Chain Interoperability

Polkadot’s Cross-Chain Messaging Protocol (XCMP) enables efficient communication and asset transfers between Acala and other parachains. This interoperability allows Acala to integrate with specialized chains, such as those focused on gaming, identity verification, or financial services, creating a comprehensive and interconnected DeFi ecosystem.

Scalability and Performance

Operating in parallel with other parachains, Acala can process transactions without the bottlenecks typically experienced in single-chain architectures. This scalability ensures low transaction costs and high throughput, making Acala’s DeFi solutions accessible and efficient for users and developers alike.

EVM+ Compatibility

Acala’s EVM+ (Ethereum Virtual Machine Plus) feature is a hybrid framework that extends traditional EVM functionality with Polkadot’s Substrate framework. This design lowers the entry barrier for developers while unlocking advanced customization options.

Seamless Transition for Ethereum Developers
EVM+ enables developers to deploy Ethereum-based dApps on Acala with minimal modifications. This compatibility allows existing Ethereum projects to expand into Acala’s ecosystem, leveraging its robust infrastructure and cross-chain capabilities.

Enhanced Functionality
The “+” in EVM+ signifies the additional capabilities offered by Substrate, such as:

• On-Chain Governance: Developers can integrate governance features directly into their dApps, enabling community-driven decision-making.
• Customizable Economic Models: Applications can implement unique transaction fees and incentive structures tailored to their use cases.

Cross-Chain Interactions
EVM+ supports seamless communication with other parachains and external blockchain networks, enabling the development of cross-chain applications. For example, dApps built on Acala can interact with tokens and services from other Polkadot parachains, creating multi-chain DeFi protocols.

Security Measures

Acala’s architecture incorporates a multi-layered security framework designed to protect users, developers, and assets across its ecosystem.

Relay Chain Security
By leveraging Polkadot’s shared security model, Acala benefits from the robust validation mechanisms of the relay chain. This ensures that Acala’s network remains secure against common blockchain vulnerabilities.

Decentralized Governance
Acala’s governance model enhances security by decentralizing decision-making. ACA token holders propose and vote on protocol upgrades, ensuring transparency and community alignment. Proposals are subject to thorough review and discussion, minimizing the risk of malicious or rushed decisions.

Smart Contract Security
EVM+ incorporates advanced security measures to protect smart contracts deployed on Acala. These include:

• Reentrancy Protections: Mitigates vulnerabilities that have historically affected Ethereum-based contracts.
• Runtime Modules: Substrate-based modules enforce stricter security parameters at the protocol level.

Decentralized Oracles
Acala utilizes decentralized oracle networks to provide reliable off-chain data, such as price feeds for aUSD and other assets. These oracles are critical to maintaining the integrity of Acala’s financial products and preventing manipulation.

Audits and Bug Bounty Programs
Acala undergoes regular audits by third-party security firms and encourages community-driven testing through bug bounty programs. This proactive approach ensures that potential vulnerabilities are identified and addressed promptly.

Multichain Asset Router

The Multichain Asset Router is a key innovation within Acala’s architecture, facilitating efficient cross-chain asset transfers. By integrating Polkadot’s XCMP and external bridges like Wormhole, the Asset Router enables users to move assets seamlessly between EVM chains and parachains.

• Unified Interface: The Asset Router consolidates cross-chain interactions into a single user-friendly interface, simplifying asset transfers.
• Cross-Chain Liquidity: By aggregating liquidity across chains, the router enhances the accessibility and utility of assets within the Acala ecosystem.
• Cost Efficiency: The router minimizes transaction fees by optimizing cross-chain interactions.