Teleporting Assets

One of the main properties that Polkadot and Kusama bring to the ecosystems is decentralized blockchain interoperability. This interoperability allows for asset teleportation: the process of moving assets, such as coins, tokens, or NFTs, between chains (parachains) to use them as you would any other asset native to that chain. Interoperability is possible through XCM and SPREE modules, which together ensure that assets are not lost or duplicated across multiple chain.

How Teleports work​

As you can see from the diagram above, there are only 2 actors within this model: the source and the destination. The way in which we transfer assets between the source and the destination are briefly summarized in the numbered labels on the diagram, and are explained in more detail below:

Initiate Teleport​

The source gathers the assets to be teleported from the sending account and takes them out from the circulating supply, taking note of the total amount of assets that was taken out.

The source then creates an XCM instruction called ReceiveTeleportedAssets containing as parameters a) the receiving account and b) the amount of assets taken out from circulation. It then sends this instruction over to the destination, where it gets processed and new assets are put back into the circulating supply.