Internet of Blockchain helps solve the problem of lack of connection between individual Blockchains, prominent among the current Internet of Blockchain platforms is Cosmos. Cosmos is currently the most complete platform in terms of infrastructure, tools, especially specialized features that bring many benefits to platforms built on it.
To have a connection between Layer 1 Blockchains on Cosmos, they have developed a protocol called IBC. IBC makes it easy for chains to interact and especially transfer assets between each other. Although IBC is not the bridge with the best technology, it is the most stable bridge in the Internet of Blockchain.
So what is IBC? Let’s find out details in this article!
To understand more about IBC, you can read the following articles:
- What Are Relaychain, Parachain & Parathread? Overview of the 3 Main Components That Make Up Polkadot
- What is Internet of Blockchain? Advantages and Disadvantages of Internet of Blockchain
- What is Cosmos (ATOM)? Cosmos Cryptocurrency Overview
- What is Cross-Consensus Message Format (XCM)? Will XCM Help Polkadot Overtake Cosmos
History begin
In March 2019, IBC (Inter-Blockchain Communication) was officially introduced by the development team of Cosmos Network, an interactive Blockchain ecosystem designed to solve problems between different Blockchains.
After its introduction, IBC has undergone many tests and improvements to enhance the performance and security of the protocol on Cosmos Network. In March 2021, IBC was officially integrated into the Cosmos SDK version, after being tested and validated by multiple independent development teams around the world.
Since then, IBC has played a key role in helping Cosmos Network grow. It allows different Blockchains on Cosmos Network to interact with each other and share information, data and resources, thereby helping to expand the usability and flexibility of applications and assets across the ecosystem Blockchain.
Currently, IBC is widely used on Cosmos Network and is considered one of the most advanced Blockchain interaction protocols in the world. It has also become the basis for many other Blockchain applications and projects, helping to improve their interoperability and security and contributing to the development of the entire industry.
What is IBC?
Inter-Blockchain Communication Protocol is also known as IBC or IBC protocol. Is the mechanism for the ability to interact between heterogeneous chains, forming the binding substrate for the Cosmos Network. IBC has been designing and developing since the release of the original Cosmos Whitepaper. This is a mechanism that allows communication and transfer of crypto assets across a network of segregated blockchains for secure interaction.
IBC is an end-to-end, connection-oriented, stateful protocol for reliable, orchestrated, and authenticated communication between modules on discrete distributed ledgers. IBC is designed for interaction between heterogeneous ledgers arranged in a dynamic, non-deterministic topology, operating with different consensus algorithms and state machines.
The protocol does this by specifying the complete set of data structures, abstractions, and semantics of a communication protocol that once implemented by the participating ledgers will allow them to communicate. continue safely. IBC is payload agnostic and provides a cross-ledger asynchronous communication primitive that can be used as a constituent building block by many applications.
Structure of IBC
The IBC (Inter-Blockchain Communication) protocol in Cosmos includes the following main components:
- IBC Handler: this is the code responsible for communication between blockchains through IBC. IBC Handler ensures authentication and processing of IBC transactions between blockchains.
- Relay: Relay is a software placed on both blockchains that communicate with each other to communicate via IBC Handler. Relay is used to create routing connections between blockchains.
- Client: Client is the component that represents a blockchain in IBC. It uses IBC Handler to connect to other blockchains and transmit information between them.
- Connection: Connection is a periodic link between two blockchains. It is created using IBC Handler and provides a secure communication channel so blockchains can send messages via IBC.
- Channel: Channel is a communication channel between two blockchains through a Connection. Channel allows individuals to efficiently and securely transmit assets and information between blockchains.
- Packet: Packet is data sent via IBC between blockchains through the Channel. Packets contain information related to assets or services transmitted between blockchains.
Operation Mechanism of IBC
General mechanism of action
IBC is a protocol designed to allow different Blockchains to interact with each other. IBC works by using communication channels between Blockchains, allowing them to exchange information and interact with each other.
When a Blockchain wants to interact with another Blockchain through IBC, it creates an IBC protocol to send messages through the IBC communication channel. These messages will be encrypted and transferred to the destination blockchain, where they are decrypted and processed. The target Blockchain can then send the reply message in reverse.
One of the potential uses of IBC is to enable dApps (decentralized applications) on different Blockchains to interact with each other, expanding the usability and flexibility of these dApps.
IBC asset transfer mechanism
IBC’s cross-chain asset transfer mechanism is called IBC Coin Transfer Protocol. It allows one Blockchain to send and receive assets from another Blockchain through the IBC channel.
When one Blockchain wants to transfer assets to another Blockchain, it creates an IBC message containing information about the amount and recipient address. This message is transmitted through the IBC channel to the destination Blockchain, where it is decrypted and the information is processed so that the asset is recorded in the recipient’s wallet.
To ensure security and avoid fraud, the IBC Coin Transfer Protocol uses encryption and digital signatures to ensure the integrity of messages transmitted over the IBC channel. Blockchains must also go through an authentication and authorization process to ensure the security of IBC transactions.
Assets that can be traded on IBC may include cryptocurrencies, ERC-20 tokens, digital assets, and other standardized asset types.
Some Applications of IBC
- Integrating dApps: IBC allows dApps on different Blockchains to interact with each other, expanding their usability and scale.
- Cross-Chain Asset Transfer: IBC Coin Transfer Protocol allows assets, cryptocurrencies and tokens to be sent and received across different blockchains.
- Restructuring Blockchains: IBC allows partners to build new Blockchains with different functions and interact with other blockchains easily.
- Data Synchronization: IBC allows different Blockchains to share data with each other, which speeds up the synchronization process and improves the availability of assets and dApps.
- Providing Liquidity: IBC allows markets to be interconnected across different Blockchains and platforms, helping to provide liquidity to assets.
The Importance of IBC for Cosmos
IBC is of great importance to Cosmos, a Blockchain ecosystem developed to expand the interoperability of Blockchains and solve problems between different Blockchains.
With IBC, different Blockchains on Cosmos Network can interact with each other, share resources and data, including cross-chain asset transfers. This helps Cosmos build a more powerful and flexible Blockchain ecosystem, making dApps and assets on this ecosystem more valuable.
In addition, IBC also helps Cosmos deal with the problem of Blockchain availability and scale. With IBC, different Blockchains on the Cosmos Network can interact with each other, helping to speed up synchronization and improve the availability of assets and dApps. This makes Cosmos one of the fastest growing Blockchain ecosystems with broad applications and strong connectivity between Blockchains.
Advantages and Disadvantages of IBC
Advantage
- High interoperability: IBC allows different Blockchains to interact with each other, expanding the usability and flexibility of applications and assets on the Blockchain.
- Scalability: IBC helps expand usability for applications and assets on different Blockchains on Cosmos Network.
- High security: IBC uses encryption and digital signatures to ensure the integrity of messages transmitted through the IBC channel.
- High Availability: IBC helps increase the availability of applications and assets on the Cosmos Network by synchronizing data and resources between different blockchains.
- Reduced costs: IBC helps reduce costs associated with developing and deploying applications and assets on various Blockchains, thereby increasing efficiency and reducing risk in the long run.
- Diversity: IBC allows dApps and assets on different Blockchains on Cosmos Network to interact and connect with each other, thereby creating a more diverse and richer Blockchain ecosystem.
Defect
- Complexity: IBC can be complicated to deploy on different Blockchains, and users may have difficulty using dApps and assets through IBC.
- Security Risk: IBC can pose a security risk if not deployed or used properly, therefore good security practices and high security standards are required to ensure confidentiality and avoid fraud.
- Dependency: IBC depends on the support of different Blockchains on Cosmos Network, which may affect the availability and integrity of IBC.
- Feature issue: IBC may not support all features of different Blockchains. This can make it difficult to connect and interact between Blockchains on Cosmos Network.
- Cost: IBC can increase costs for developers and users, especially when deployed on many different Blockchains in the Blockchain ecosystem.
Comparing Cosmos’ IBC With Polkadot’s XCM
In this part, I have created a detailed comparison table between Cosmos’s IBC and Polkadot’s XCM in the article “What is Cross-Consensus Message Format (XCM)? Will XCM Help Polkadot Surpass Cosmos”, you can read here !
Cosmos’s Personal Projection About IBC
IBC is the backbone of the Cosmos ecosystem, helping Layer 1s communicate with each other easily. And IBC is also the most complete bridge in the Internet of Blockchain, and the Cosmos ecosystem has been developing very quickly recently.
IBC will continue to develop to support Cosmos, a leading platform in the Internet of Blockchain segment. Completely eliminate barriers between Layer 1 Blockchains. In addition, IBC also helps the Cosmos ecosystem link with long-standing Blockchains such as Ethereum, BNB Chain,… creating a connected Blockchain space that brings many applications. further application of Blockchain technology.
Summary
Although IBC is currently the leading product, upgrading it to suit future technology is a bit difficult. So IBC also needs more time to develop and prove its feasibility in practice. Especially against major attacks.
So I have clarified what IBC is? Hope this article gives you the most detailed perspective and knowledge!
