DeFi
Composable Finance is bringing inter-blockchain communication (IBC) from the Cosmos to Polkadot.
IBC, as its title signifies, is an interoperability protocol that helps blockchains talk with one another within the Cosmos ecosystem.
The protocol is designed with a transportation layer and an utility layer; these layers work collectively so info between completely different blockchains might be precisely and securely transferred.
Though it’s native to the Cosmos ecosystem, IBC can hook up with app chains exterior of its community. Composable Finance sees this as a possibility to carry this expertise to Polkadot and different ecosystems.
Because of this, the corporate has chosen to make use of IBC to attach DeFi features throughout completely different ecosystems, Jafar Azam, head of developer relations at Composable Finance, informed Blockworks.
“We imagine in a future the place customers go to an utility, and so they don’t care what chains the applying sits on, so long as they’re getting the perfect and best price that they need,” Azam stated.
Whereas Polkadot does have a counterpart to the IBC known as the Cross-Consensus Message Format (XCM), Azam factors out that its performance is restricted to bridging between parachains.
“We checked out how IBC was working, and it had been in communication transfers over the previous few years since launch, and resulting from its trustless nature, we selected it because the switch layer to bridge to different ecosystems,” he stated.
In keeping with Azam, the IBC has already facilitated the connection between Polkadot and Kusama, which serves as Polkadot’s canary community — a testing floor of kinds for options and features. There are additionally plans to ascertain a connection between Polkadot and Cosmos later this month.
Choosings IBC over different bridging options finally got here all the way down to its decentralized, trustless nature, Azam explains. Noting that loads of bridge communication protocols depend on multi-sigs, the place funds might be withdrawn if multisig holders select to collude.
“You’re a complete ecosystem being demolished simply by way of 4 individuals…as a result of IBC doesn’t depend on any third social gathering, it’s not a centralized resolution,” Azam stated. “That’s why we selected IBC.”
Composable Finance can also be one of many first groups to implement CosmWasm, a protocol facilitating the creation of modular good contract code. Composable Finance carried out it exterior of the Cosmos ecosystem, enabling current tasks on Cosmos to deploy on Polkadot.
“Polkadot and Cosmos share the same imaginative and prescient the place you will have a spread of heterogeneous blockchains working collectively, our purpose is bridging between these two ecosystems as a result of everyone has the identical imaginative and prescient of a cross-chain future,” he stated.
