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ZetaChain vs. Axelar: A Deep Dive into Interoperability

Nov 19, 2025

ZetaChain Team

At ZetaChain, our mission is to build the Universal Blockchain that makes using Web3 as simple and unified as the Internet for both humans and AI.

Interoperability remains one of the hardest technical challenges in blockchain.

As ecosystems multiply, developers are no longer debating if chains should communicate but how to connect them securely and efficiently.

Two leading projects, ZetaChain and Axelar, take fundamentally different approaches to this problem.

ZetaChain is a Proof-of-Stake Layer 1 blockchain that natively embeds interoperability into its consensus and smart-contract layer, while Axelar operates as a cross-chain messaging and token routing network.

This article compares both architectures through the lens of developers building scalable, trust-minimized, and truly omnichain applications.

High-Level Overview

ZetaChain in Brief

ZetaChain is a Layer 1 blockchain built on the Cosmos SDK and CometBFT consensus engine.

It connects multiple blockchains—including EVM chains (Ethereum, BSC, Polygon, Avalanche), non-EVM chains (Solana, Sui, TON), and non-smart-contract chains like Bitcoin and Dogecoin—through validator-level observation and signing.

Key components:

  • Core Validators:

    Participate in PoS consensus and execute on-chain transactions.

  • Observer-Signer Validators:

    Monitor external chains and collectively sign outbound transactions using Threshold Signature Schemes (TSS).

  • ZetaChain EVM:

    A built-in Ethereum-compatible environment running Universal Smart Contracts that can execute logic across any connected chain.

ZetaChain is itself the execution layer where cross-chain logic runs natively within the blockchain's consensus.

Axelar in Brief

Axelar is a decentralized PoS network built on the Cosmos SDK that connects 70+ blockchains through General Message Passing (GMP) and Interchain Token Service (ITS).

Core components:

  • Validator Network:

    Observes connected blockchains, verifies messages, and reaches BFT consensus on Axelar's own Layer 1 chain.

  • Gateways:

    Smart contracts (or equivalents) on each connected chain that verify Axelar’s

    threshold signature

    and then execute the approved command (e.g., mint/burn interchain tokens, call target contracts).

  • Relayers:

    Optional agents that deliver verified messages from Axelar to destination chains.

  • Gas Service:

    Allows users to prepay and, if needed, increase destination gas to ensure execution.

Applications use:

  • GMP for arbitrary data and function calls between chains.

  • ITS (or legacy wrapped assets via the Gateway) for cross-chain token transfers.

Unlike ZetaChain’s native execution model, Axelar primarily acts as an interoperability middleware layer: it routes and authorizes cross-chain messages, while application logic runs on the connected source/destination chains.

Architectural Comparison

Aspect

ZetaChain

Axelar

Type

Layer 1 blockchain

Messaging and token-routing network (overlay L1)

Consensus

PoS CometBFT

PoS (CometBFT)

Verification

On-chain consensus about external events + TSS for outbound signing

Validator threshold-signature attestation on Axelar → verified by gateway contracts on destination chain

Smart Contract Layer

EVM with built-in interoperability features

App logic typically lives on source/destination chains

Execution

On-chain atomic cross-chain logic orchestrated by contracts on ZetaChain

Axelar network routes/authorizes; execution occurs in contracts on the destination chain

Topology

Hub-and-spoke

Point-to-point

📘 Learn more: ZetaChain Architecture Overview

Trust and Security Assumptions

ZetaChain — Validator Consensus + TSS

ZetaChain validators reach on-chain BFT consensus over cross-chain events.

When an external-chain event (such as a Bitcoin deposit) is observed, two-thirds of validators must agree before executing any on-chain action.

For outbound transactions, ZetaChain uses Threshold Signature Schemes (TSS):

  • Validators co-sign transactions, ensuring no single node controls a private key.

  • Validators directly manage addresses on external chains such as Bitcoin and Ethereum.

  • Validators are staked and subject to slashing, aligning economic security with network integrity.

Axelar — Validator Verification Network

Axelar uses a decentralized PoS validator set that verifies messages and finalizes them through its own blockchain consensus.

Validators sign attestations that are verified by Gateway contracts on destination chains before executing the corresponding transactions.

Security features:

  • Interchain Amplifier :

    Establishes security standards and auditing for verifiers and relayers.

  • Bonded validators & slashing:

    standard Cosmos slashing for downtime/double-sign.

  • On-chain governance:

    validators/AXL stakers govern upgrades/params; some fast-path items via governed multisig.

Layer

ZetaChain

Axelar

Verification

Validator consensus on-chain

Validator threshold-signature attestations → verified by Gateway contracts

Security Root

PoS staking + slashing

PoS staking + slashing

Collusion Threshold

⅔ validators

⅔ validators

Fault Tolerance

Byzantine-fault tolerant (CometBFT)

Byzantine-fault tolerant (CometBFT)

Native BTC Support

✅ Native TSS to a Bitcoin address

❌ No native BTC key control; BTC via Stacks / Babylon / wrapped / ITS flows

Token and Asset Models

Feature

ZetaChain

Axelar

Token Transfers

ZRC-20 protocol-managed assets, with native withdrawals via TSS

Gateway-wrapped assets and Interchain Token Service (ITS) for canonical interchain tokens (mint/burn or lock/unlock)

Custody

Validator-managed TSS custody of external-chain vaults

Network-controlled threshold signature (MPC/TSS) approvals; assets escrowed in gateway/token-manager contracts

Wrapping

Protocol-managed representations (ZRC-20) on ZetaChain; redeemable to native on connected chains

Wrapped via Gateway; with ITS, tokens can be wrapped or canonical depending on configuration

Atomicity

Contract-orchestrated cross-chain flows with rollback semantics on ZetaChain

Per-message delivery/execution; no built-in multi-leg atomic bundles (apps handle retries/compensation)

ZetaChain ZRC-20

ZetaChain introduces ZRC-20 tokens—protocol-managed representations of assets held collectively by validators.

They function similarly to wrapped assets but are managed and verified directly by ZetaChain's consensus, not by external bridges.

Cross-Chain Programmability

ZetaChain — Universal Smart Contracts

Developers deploy a single Universal Smart Contract on ZetaChain's EVM.

That contract can:

  • Accept inbound calls or token deposits from any connected chain.

  • Execute complex logic atomically.

  • Send outbound transactions to other chains through validators.

If a transaction fails, ZetaChain automatically reverts and refunds users.

This single-deployment model delivers truly omnichain composability without manual message reconciliation.

📘 Docs: Universal Apps Guide

Axelar — General Message Passing (GMP)

Developers deploy contracts on each chain they wish to connect.

Messages are sent via GMP, routed through the Axelar network, and executed on the destination chain once validated by its Gateway.

Pros:

  • Flexible, supports arbitrary function calls.

  • Broad EVM and Cosmos coverage.

Cons:

  • Requires multiple deployments and asynchronous coordination.

  • State is split across chains and must be manually synchronized.

  • Each transaction consumes gas on both chains.

Bitcoin and Non-EVM Chain Support

ZetaChain

ZetaChain directly connects to EVM and non-EVM chains, including Bitcoin at the protocol level.

Validators observe BTC transactions natively, trigger ZetaChain smart contracts, and sign outbound BTC transfers using TSS.

This enables Bitcoin-native DeFi and omnichain apps without requiring intermediary layers or wrapped tokens managed by external protocols.

Architecture: ZetaChain validators run Bitcoin full nodes and use TSS to directly control Bitcoin addresses, enabling native Bitcoin programmability without bridges or wrappers.

📘 Docs: Bitcoin Developer Docs

Axelar

Axelar primarily supports programmable smart-contract ecosystems such as EVM, Cosmos, and Move-based chains.

Bitcoin Integration: Axelar has integrated Bitcoin support through partnerships with Babylon Genesis (enabling Bitcoin staking across 70+ chains) and via Stacks bridges. However, this approach relies on intermediary smart contract layers rather than direct Bitcoin protocol interaction. Axelar's Interchain Amplifier allows developers to connect Bitcoin-adjacent networks, but the integration architecture differs fundamentally from direct Bitcoin observation and signing.

Gas and Fees

Feature

ZetaChain

Axelar

Gas Model

Gas abstraction: app pays ZetaChain gas; external-chain gas is paid in the

ZRC-20 of that chain’s gas token

via withdraw/call fees

Gas Service lets users/apps prepay on the source chain; that prepayment covers Axelar + destination execution

Cost Scope

Unified gas across ZetaChain

Gas on both source and destination

Refunds

Protocol-level reverts / refunds

Managed by relayers or Gas Service

ZetaChain abstracts gas through ZRC-20 tokens, simplifying multi-chain interactions with a unified fee model.

Axelar's Gas Service lets users prepay for destination-chain execution and increase gas if necessary.

Developer Experience

Feature

ZetaChain

Axelar

SDK

Toolkit and Gateway API

GMP / ITS SDKs

Deployment

Single universal contract

Multi-contract (per chain)

Local Testing

Localnet simulates cross-chain flows with EVM, Sui, Solana and TON

Local GMP examples/dev env but most multi-chain tests rely on testnets

Bitcoin Support

✅ (native)

❌ (via intermediaries)

Docs

ZetaChain Docs

Axelar Docs

CLI

ZetaChain CLI

ZetaChain simplifies development with a single, unified EVM and built-in omnichain APIs.

Axelar offers a mature SDK stack for EVM and Cosmos chains.

Comparative Summary

Use Case

Best Choice

Why

Atomic cross-chain execution

ZetaChain

Single contract handles all chains with native composability

Native Bitcoin integration

ZetaChain

Direct TSS-based Bitcoin control without intermediaries

Simplified deployment

ZetaChain

One deployment on ZetaChain EVM vs. multiple per chain

Gas abstraction

ZetaChain

Unified ZRC-20 gas model simplifies UX

Cross-chain state management

ZetaChain

Built-in state synchronization across all chains

Non-smart contract chain support

ZetaChain

Native protocol-level integration via TSS

True omnichain composability

ZetaChain

Universal contracts enable atomic multi-chain logic

Conclusion

ZetaChain embeds interoperability at the protocol level with native Bitcoin support via TSS, enabling developers to deploy once and orchestrate across all chains atomically.

Axelar provides mature cross-chain messaging across 70+ blockchains but requires multi-chain deployments and intermediary layers for Bitcoin.

For developers building omnichain applications, ZetaChain's unified execution model offers superior simplicity, composability, and native cross-chain access.

About ZetaChain

ZetaChain is the first Universal Blockchain with native access to Bitcoin, Ethereum, Solana, and more, offering seamless user experience and unified liquidity to the next billions of users. With its Universal EVM, ZetaChain empowers developers to build Universal Apps that operate natively across any blockchain, creating a fluid crypto ecosystem from a single platform.

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