An interesting tweet popped up in my feed, and has prompted this post. We all know that the Ethereum merge is happening soon. However there are some interesting developments with two other eco-systems that could have a significant impact on the Crypto space in the coming years.
Cosmos X Polkadot.
The IBC protocol enables blockchains to connect, transfer value and information to each other. With its initial use case being for token transfers across chains, the Osmosis Dex was the first full scale utilization of this protocol. Since then, a multitude of Cosmos SDK based chains have adopted IBC, and the eco-system activity has flourished. In the last seven days, over 500,000 cross chain transactions have occurred, moving $100 million of value across 46 active zones (separate layer 1 blockchains).
The IBC is growing rapidly, as the above image and stats highlights. However, this connection of Cosmos SDK chains to each other is just one story in the IBC era that is coming. IBC has been designed to be adopted beyond just Cosmos chains. Of particular interest is that the Polkadot network have been working actively to add IBC to its eco-system. What sort of network effects will flow if the Cosmos and Polkadot eco-systems integrate with each other via IBC?
So here is the tweet.
The above link is to a tweet by asynchronous brainjar, founder of a project called Composable Finance.
The first ever interaction between two polkadot parachains utilizing cosmosibc.
In this clip, seunlanlege demonstrates and initiates a connection from one parachain (on the Rococo testnet) to another utilizing the IBC protocol as a transport layer.
With this milestone completed, we are even closer to Parachain <> Cosmos over IBC.
Quotes from above linked tweet thread.
The idea of strong links between the Polkadot/Kusama network, including the parachains, and the Cosmos IBC eco-system (46 chains strong and growing) is a compelling sign that the IBC protocol is achieving its goal of enabling "the internet of blockchains."
But wait, there is more...
Near Protocol may also have IBC connections in progress. Work is underway, being initiated by the above mentioned Composable Finance, along with Strangelovelabs.
This detailed tweet thread from Frens Validator goes through all the details. Suffice to say, there is still more work to be done, but linking another rapidly expanding ecosystem like Near to the IBC network grows the appeal even further.
IBC seems to be seen as a superior method of connecting eco-systems than many other bridging methods. It has successfully facilitated the transfer of billions in value, without a single exploit or successful attack. In a time where bridge vulnerabilities are one of the biggest risk factors in crypto, IBC is presenting itself as a viable solution.
As more networks connect and enable IBC, the network effect grows, and the appeal for other protocols to join in also grows.
Bullish IBC.
What do you think?
Is IBC poised to become THE standard for inter chain communications and value transfer?
What eco-systems would you like to see add IBC?
Wen HIVE IBC?
Let me know in the comments below.
Thanks for reading,
JK.
Here are some more original posts from me that you may enjoy:
- EVMOS is the gift that keeps on giving.
- Hitchhikers guide to the Cosmos
- Comdex drama - Marketing, Wash Trading and more
- Good news for the Cosmos - bad look for Ethereum - dYdX on the move
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