Cosmos Rolls Out Inter-Blockchain Communication (IBC) For Enabling Cross-Chain DeFi

In recent news, Cosmos has begun constructing a cross-chain decentralized exchange (DEX) for the purposes of enabling IBC (inter-blockchain communication) compatibility with current blockchains. This is to be referred to as Gravity.

Cosmos’ inter blockchain had gone live just yesterday and has so far been successful in allowing the transfers of different tokens and assets to occur between blockchains compatible with IBC and Cosmos.

IBC to enable ease of transferring and compatibility

The suggestion of the aforementioned inter blockchain compatibility is certainly something that investors can take advantage of. With the implementation of IBC, the transferring of tokens and crypto assets will be made much more accessible. It is also due to ideas such as these that Cosmos developed the nickname of ‘Internet of blockchains,’ though this is a self-appointed title.

To provide some context, in order for a proposal by Cosmos to be approved, it is required to secure 512 ATOM tokens that will be deposited for the purposes of supporting it. Furthermore, the number of tokens that someone or a group of individuals may hold shall also determine just how much of an influence the vote will have towards a proposal’s eventual outcome.

The IBC feature itself had been under development for a good five years and had been voted in thanks to governance by the community, with the votes totaling 112 million. This, in turn, offered massive support for launching the feature towards the end of March, although it should be mentioned that over 70 million votes had been made against it.

IBC to facilitate NFTs and fungible tokens

Cosmos further elaborated that new applications will be promoted with the help of IBC and that this will also assist in facilitating fungible as well as non-fungible tokens (NFTs) between the chains. This will further help pave the way for NFT marketplaces and cross-chain exchanges. Moreover, Cosmos had also stated that work on a decentralized exchange that will offer support for cross-chain functionality is already being done at this very moment.

Lastly, not only will IBC will allow for the exchanging of data to take place in a secure and efficient manner, but it will also bring forth sharding through the employment of sidechains that are to be used for various applications. Still, despite all this, the ATOM token has not improved and has, in fact, dropped by 23% since February.

Author: MubaShar Nawaz
MubaShar Nawaz is an experienced writer working for TheForexPro.info. Having passion for writing, he covers news articles from the finance and trading world.

Leave a Reply

Your email address will not be published. Required fields are marked *