Cosmos, the self-described Internet of Blockchains, has recently introduced its Inter-Blockchain Communication (IBC) to allow Cross-Chain DeFi. As reported, it will enable the transfer of crypto assets conveniently between the independent blockchains.
Cosmos Launches Inter-Blockchain Communication to Enable Cross-Chain DeFi
The Inter-Blockchain Communication of Cosmos went live on March 29, and it enabled the transfers of tokens between Cosmos and other blockchains that support IBC.
The transfer feature was in the stages of development for five years, and it was voted in via community governance. It received 112 million votes in support of the activation of the feature, while 75 million votes were against its activation.
Over a period of two weeks, a Cosmos proposal is required to secure at least 512 ATOM tokens placed in support of it for voting to begin.
The numerical value of the tokens an individual or group holds will influence the outcome of the proposal. In addition to this, Cosmos declared that IBC facilitates new apps by facilitating both the fungible and non-fungible tokens between chains and covering the path for NFT marketplaces and cross-chain exchanges.
Cosmos also made an announcement regarding the operations on Decentralized exchange supporting cross-chain functionality for IBC-compatible blockchains that said:
“The Gravity DEX will act as a marketplace for trading tokens from any connected blockchain, including tokens from IBC-enabled blockchains, wrapped ETH and ERC20 tokens, wrapped BTC tokens, as well as from any future networks that implement IBC.”
Everything You Need to Know About IBC
IBC or Inter-Blockchain Communication is a standard that provides a procedure of securely exchanging data between two independent blockchains. It also provides scaling through fragmenting by utilizing sidechains for various apps.
The standard has been introduced as a segment of a wider Cosmos ecosystem update called Stargate, which also incorporated new nodes that can update about 200 times faster.
Despite the announcement that was made, the domestic token of Cosmos, ATOM, has changed hands for approximately $20 and is down 23% from its peak of $26 on February 17.