Cosmos (ATOM) newly launched IBC will scale cross-chain DeFi
- Feature will be beneficial to new applications because it will enhance both fungible and non-fungible tokens.
- The new feature also provides scaling through sharding by using sidechains for different protocols.
- IBC will provide ensure that messages freely travel between blockchains that implemented the standard.
Blockchain platform Cosmos (ATOM) has now enabled the easy transfer of assets between blockchains after the launch of Inter-Blockchain Communication (IBC), called Gravity.
Cosmos invertors voted positively on the new project, with 112 million overwhelmingly voting in favor of the feature while 75 million voted against it.
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As the project goes live, IBC will provide the avenue for messages to freely travel between blockchains that implemented the standard.
The project received an overwhelming support
The new features have been in development since 2016. The voting process was initiated after the requirement of 512 TOM tokens was met by the investors in support of the voting process.
IBC was initially built into Stargate, which was enabled by the Cosmos ecosystem in February. But ATOM holders allowed Stargate to undergo more testing before integrating and enabling IBC. The vote then put IBC into effect on Cosmos.
Generally, the number of tokens a group or individual has determined the level of influence they have during the voting process. And it turned out that the investors with more tokens offered massive support for the project to go live.
Zarko Milosevic, the chief scientist at Informal Systems, a blockchain consultancy firm, explained why IBC is relevant.
“IBC is a method of securely exchanging data between two independent (sovereign) blockchains,” he said.
It means two blockchains that have implemented IBC can communicate with each other in a permissionless manner.
IBC will be beneficial within the DeFi sector
According to Milosevic, this has the potential of opening opportunities within the decentralized finance (DeFi) sector.
For instance, ATOM, which is the governance token of Cosmos, is now interoperable and transferable with blockchains that support IBC.
Cosmos stated that the new feature will be beneficial to new applications because it will enhance both fungible and non-fungible tokens. This will create the way for more NFT marketplaces and cross-chain exchanges.
Cosmos said it is committed to expanding cross-chain functionality for IBC-compatible blockchains.
Apart from securely allowing the exchange of data between two independent blockchains, IBC also utilizes sidechains for different protocols to provide scaling through sharding.