IBC: A Core Primitive for Interchain Native Products

IBC: A Core Primitive for Interchain Native Products
  • Light clients: an IBC light client is an algorithm that can cryptographically verify the updates made to the state machine on a counterparty chain by verifying block headers. Chain A maintains, and periodically updates, a light client for chain B that it wishes to interact with (and vice-versa).
  • Relayers: two blockchains interconnected over IBC do not directly beam messages between one another. Rather, they commit/store (a hash of the) data packets to their state. Permissionless off-chain processes known as relayers observe for such packets and ferry them across to the counterparty chain.
Figure 1

Osmosis

Source: info.osmosis.zone

Umee

Figure 2: uToken flow while using ETH as collateral to borrow ATOM

Band Protocol

  • Real-time price feeds: aggregating asset prices from multiple data sources. Reliable price feeds are a requirement for the smooth functioning of DEXs, futures/options markets, derivatives trading, etc.
  • Verifiable Random Number Generation: generating random numbers for NFTs, speculative games, or other randomized selection applications.
  • Cross-chain communication: BandChain can act as an intermediary between two blockchains to facilitate communication. For example, while bridging assets between two blockchains, BandChain can be used to verify transactions and to relay proofs between said chains.
Figure 3: data request flow using IBC between BandChain and a counterparty chain

Crescent Network

Source: docs.crescent.network

Quicksilver Protocol

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