Inter blockchain Communication is one of the important terms when referring to the Cosmos ecosystem. So what is Inter Blockchain Communication (IBC)? And its importance in the Cosmos ecosystem will be introduced in the following article.
What is Inter Blockchain Communication protocol?
The Cosmos ecosystem is a network of many different independent Blockchains. These networks are built on top of the Cosmos SDK Framework provided by Cosmos.
Inter Blockchain Communication (IBC) is one of the Cosmos network’s core products. It is a cross-chain communication protocol that helps the Cosmos network realize the ability to connect Blockchains with the vision of the “Internet of Blockchain”…
Inter Blockchain communication (IBC) allows Blockchain networks built on Cosmos to be interconnected, cross-chain communication, and the ability to transfer data and transfer arbitrary tokens.
These networks connect via a 2-way gateway. The mechanism of action is similar to the solution to move tokens from Ethereum to Side chains.
How does Inter Blockchain Communication (IBC) work?
The IBC protocol consists of two distinct layers:
The Transport Layer (TAO) provides the infrastructure to establish secure connections and authenticate data packets between chains and the application layer, defining exactly how these data packets should be closed. Packets and calculate when to send and receive on the chain.
The IBC application layer can be used to build a wide range of cross-chain applications with unlimited token transfer capabilities, cross-chain account integration (a proxy connection between two chains), NFT transport, power feeds, and Oracle data.
When a user sends a valid cross-chain transaction to an IBC endpoint, the origin chain will freeze the tokens sent, and the user at the destination chain will receive the corresponding amount of wrapped tickets.
Users can send these wrapped tokens back to the original chain to get their authentic tickets back.
The difference between the IBC protocol and specialized Bridge applications conducted by individual networks in the Cosmos ecosystem is that the IBC protocol allows implementation on the entire Cosmos network, requiring This network has integrated IBC and permissionless computing.
Importance of IBC to the Cosmos Network
The Cosmos network is a collection of Blockchain networks, services, and applications such as Binance Smart Chain, Terra, Thorchain, and Crypto.com… with a value of more than $130B and over 50 applications.
Since the Terra network integrated the IBC protocol, the UST stablecoin has been transported between more than 17 IBC-integrated networks on the Cosmos network, allowing users to use digital assets on various Defi applications.
If Terra does not integrate IBC, this will not be easy; they will have to build 17 different bridges to connect to separate networks. It is very complicated and takes a long time to make.
In the above article, SMARTOSC introduced you to the Inter Blockchain Communication protocol. And the importance of the IBC protocol to the Cosmos ecosystem.
I hope you have suitable options and bring high profits.
For any information, please comment so that SmartOSC can support and discuss.
Contact us if you have any queries about Blockchain development services, dApps development, NFT marketplace development, Crypto wallet development, Smart contracts development.