Cosmos (ATOM) lets blockchains talk to each other
Cosmos has taken an important step towards interoperability between blockchain networks. The validators voted in favour of the launch of the Inter-Blockchain Communication protocol, which enables token exchange between different platforms. The Internet of Blockchains is becoming a reality.
While the blockchain evolution began with Bitcoin and reached the next stage of development via smart-contract-based platforms such as Ethereum, projects such as Cosmos belong to the third DLT generation. Interoperability is the declared goal of these open network structures, which also include Polkadot or Cardano, each with a different focus. By interconnecting different Bitcoin Revolution blockchain networks, Cosmos aims to map an „Internet of Blockchains“. With the publication of the Inter-Blockchain Communication Protocol (IBC), the project has taken a big step in this direction.
As a cross-chain infrastructure, Cosmos networks different blockchains, in Cosmos they are called „Zones“, via the Cosmos Hub node. But Cosmos also serves as an open workspace: developers can set up their own blockchains with modular frameworks and connect them to the network. So the name is no coincidence. Ultimately, no less than a macrocosm of different platforms is to be created that embed themselves in a fully interoperable ecosystem.
This exchange between protocols is guaranteed by the „Inter-Blockchain Communication Protocol“ (IBC). Different networks can communicate with each other via the IBC protocol, which allows crypto assets to be transferred between the different zones. The IBC protocol has been in development since 2016. Since 2020, it has undergone extensive stress testing in the Game of Zones testnet environment and was submitted to the validators for sign-off yesterday, 29 March.
Inter-blockchain communication goes live
An overwhelming majority of over 1,500 validators voted in favour of the launch of the IBC protocol, according to the blog post. According to the post, the approval marks „a significant milestone in the development of the Cosmos ecosystem and the vision to realise the Inter-Blockchain Communication protocol as the foundation for interoperability between sovereign blockchains“.
In the future, blockchains connected to IBC will be able to access ATOM, the native token of the Cosmos platform, but also the exchange of fungible as well as non-fungible tokens between different blockchains is possible via the IBC protocol. For DeFi applications in particular, the network is likely to develop into a central distributor. In this respect, the developers are already planning to set up the decentralised exchange Gravity DEX.
A new blockchain standard?
The team has high hopes for IBC to become „the standard protocol for reliable and secure inter-blockchain communication“. The frictionless token transfer is „the first, decisive step in this direction“. The Cosmos concept has already convinced tech giants like Microsoft, which is connected to the Regen Network, a Cosmos-based marketplace for „climate solutions“. Since February, Cosmos has also been integrated into the Blockchain Service Network (BSN), the Chinese state blockchain.
However, the price explosion was limited at the time of going to press. ATOM is currently trading at 20.13 US dollars, a modest 2.3 per cent higher than the previous day.