Crypto.com is becoming the world’s fastest growing cryptocurrency app. They have been introducing several upgrades in their app. One of the most recent ones is the Inter-Blockchain communication (IBC) protocol.
What Do We Need to Know About Inter Blockchain Communication?
The technology has been developed by the Cosmos (a network of blockchains). It connects different blockchains to establish communication between them. The company has been working on this project since 2016 and first launched it on 18th February, 2021.
On April 22, Crypto.com announced that it will be activating IBC on the basis of votes given by its community. It was a 14-day voting period, which ended on 1st May 2021. According to the proposal, the IBC assets will allow them to communicate and enable transfers between different blockchain networks.
On Thursday, Crypto.com finally announced that IBC can now be used to facilitate inter-chain communication. This will allow transfers between the Crypto.org chain and other chains that use IBC.
What Will This Lead to?
The idea behind IBC is to build a strong and open ecosystem of networks. This ecosystem enables transfer of cryptocurrency assets between blockchains that are using this protocol.
Cosmos also revealed that they are developing a peg zone (adaptor zone) for Ethereum. This will allow transfer of Ether and ERC20 tokens between the Ethereum blockchain and all the IBC-enabled chains. Of course, this transfer of crypto-assets will be a little more complicated. This is because the Ethereum Virtual Machine is not yet compatible with Inter Blockchain Communication.
Currently, the above project with Ethereum is still under testing and development mode. However, the success might lead to a huge development in the ecosystem that allows transfer of crypto-assets between 2 blockchains.