Cosmos brings out IBC, Allowing Easy Token Transfer
Cosmos brings out IBC, Allowing Easy Token Transfer
March 31, 2021
Cosmos brings out IBC, Allowing Easy Token Transfer
Cosmos brings out IBC, Allowing Easy Token Transfer
March 31, 2021

Cosmos after a long period of research, got to see the light of the day by launching its “Interchain Era” on March 29.

Cosmos in its IBC launch party hosted by Tendermint said:

After 5 years of research and development, Inter Blockchain Communication is being rolled out onto the Cosmos Hub! This is the first step of enabling cross-chain communication, which activates IBC token transfers – allowing you to send fungible tokens from one chain to another. As the first chain to have a permissionless and open source cross-chain token transfer protocol, this will enable numerous novel use cases for cross-chain DeFi.

On March, 29, Cosmos went live on Crowdcast at 7 pm UTC where it showed the working procedure of Inter Blockchain Communication(IBC) in a 3-hour event, happened to do an “a live demo of tokens transfer to/and from Cosmos Hub; transfer IBC tokens using Keplr; connect chains using the Hermes relayer!”

The cerebral minds behind the development of the IBC project include Interchain Foundation, Interchain GmBH, Tendermint, Iqlusion, Regen Network, Informal Systems, Agoric, and others. As mentioned by the medium blog of Cosmos, the passing of Proposal 41 was supported by almost 1500 Cosmos validators and delegators for fungible token transfers to Cosmos Hub. The launch is no doubt a “momentous milestone in the evolution of the Cosmos ecosystem and the vision to realize the Inter-Blockchain Communication (IBC) protocol as the foundation for interoperability between sovereign blockchains.”

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The IBC project has been in development since the “Cosmos whitepaper”s release back in 2016. The whitepaper was released by Cosmos’ co-founders Jae Kwon and Ethan Buchman. On March 17th, the ATOM community welcomed the signal proposal to add Gravity DEX to the Cosmos Hub.

As per the proposal:

The Gravity DEX is initially planned as an automated market maker (AMM) exchange that will allow users to trade IBC token pairs and provide liquidity for traders. These tokens would arrive on the Hub through IBC-enabled chains, IBC-wrapped ETH and ERC20 tokens, IBC-wrapped BTC tokens, and as well as future blockchain ecosystems that implement the IBC protocol.

Peng Zhong, Tendermint CEO said:

The permissionless transfer of tokens value across chains is a historic moment on the timeline to a valuable internet of blockchains. We will continue to focus on building the Cosmos Hub as the heart of the interchain — enabling trade and connecting politically sovereign chains to create a new paradigm for economic exchange. We have a defined roadmap in place to realize this future, and will continue to develop services for the Cosmos Hub that will create immense value for all the chains that connect to it.

Gregory Landau, Regen Network CEO said:

Regen Network will enable IBC functionality shortly after our early April main net launch. We are excited to transform carbon markets and achieve a global carbon accounting system while empowering grassroots action, agency and sovereignty.

However, the team has put a disclaimer as even though the particular IBC token transfer will give the ” users seamless and permissionless access to features on chains that are interoperable with the asset issuing chain” but there attains a risk of user funds as vulnerable to risk and theft. As IBC wants the chains to operate within the Tendermint security model, where the full nodes “produce agreement under the assumption that at most, ⅓ of the voting power held by validators are malicious.” So, for the time being, Cosmos encourages the users to transfer a small number of tokens using IBC.

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While talking about asset transfer, Dean Tribble, Agoric CEO said:

Asset transfer on the Cosmos Hub enables the next phase of the interchain: economic collaboration among chains and projects. Where the addition of IBC brought highways, today’s transfer launch brings economic exchange — it puts trucks on those highways. As a result, DeFi applications can leverage the assets and services of other chains, leading to the next phase of economic growth in DeFi.

Source: Cointelegraph


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Rashmi Singha

Rashmi Singha is a content writer at Crypto News Point. A learner, an observer who loves to communicate with people. Having a tad bit of experience in content writing, she aspires to learn the other disciplines in the respective field.