News
How Blockchain Is Getting Safer and Faster
THE Cardano Foundation has been working on a building block that introduces inter-blockchain communication (IBC) protocol capabilities to the Cardano blockchain, specifically designed to enable trustless transactions and data exchanges between distinct blockchain networks.
In recent months, Composable Finance has launched the first IBC implementation that connects Pois and Kusama, and connections are being developed with Avalanche via Landslide, NEAR via Omnity Network, BNB via Toki, Polygon via Union and now Ethereum and Solana via Picasso Network.
The IBC framework not only works to improve existing systems, but also to expand what they can accomplish. It facilitates the transfer of data and assets between different blockchains, while still ensuring that businesses benefit from the security and deterministic fees inherent to the Cardano blockchain.
For these reasons, The Cryptonomist decided to conduct an interview with Susannah Evans, IBC Product Lead at the Interchain Foundation and Sebastian Bode, VP of Engineering at the Cardano Foundation.
Can you explain how IBC facilitates interoperability between different blockchain networks and what specific challenges it faces in the current blockchain ecosystem?
Susannah: Interoperability is often seen as an application through smart contracts and not directly part of the core blockchain protocols. IBC was designed to enable communication between different blockchain networks for a more seamless development of decentralized networks, leveraging this as a core function of blockchain. For this to work, the protocol must be viable, credible, and accessible. We have seen other ecosystems struggle with trust, those that do not integrate interoperability as a primary initiative for the blockchain ecosystem. IBC is designed to address these core issues: it has been battle-tested to enable both cross-chain and token bridging, trusting the consensus of the chains involved without the need for third-party verification.
Sebastian: From Cardano’s perspective, how does integrating or collaborating with IBC enhance Cardano’s capabilities and user experience?
Businesses that rely on Cardano can now create their own application-specific blockchains. This gives them more flexibility in terms of privacy and scalability, while still having the strong security and reliability of the Cardano blockchain. For end users, they have access to more diverse Dapps, while also opening up the DeFi and asset trading space between both ecosystems so liquidity can flow more easily.
What are the key technical aspects of IBC that ensure secure and efficient cross-chain communication?
Susannah: IBC facilitates the secure and permissionless transfer of different data between blockchains. The protocol is designed to be consensus agnostic, meaning it can run on different consensus mechanisms used by different blockchains. This flexibility allows IBC to facilitate communication between different blockchain networks without requiring significant changes to their core protocols. Its lightweight client-based approach eliminates the need for a trusted third party in cross-chain interactions, safeguarding significant annual transfers of value without any exploits since its inception. IBC also employs a relayer model where independent, permissionless relayers are responsible for transferring data packets between blockchains, meaning the data cannot be altered or tampered with, as their role is purely to facilitate seamless communication.
Could you provide information on the technical changes or developments that Cardano has made to integrate with IBC and what benefits this brings to Cardano developers and end users?
Sebastian: Cardano hasn’t had to make any changes at the core level, as we rely solely on our Aiken smart contract platform. Other existing development tools come mainly from the Go and Typescript language ecosystem, as well as Mithril, a product developed by IOHK to bring threshold-based signatures and these state-proof primitives to Cardano. This primarily brings another building block for developers and businesses building on Cardano and gives them a larger solution space for challenges. It also opens up the possibility of adding additional EVM compatibility options to Cardano via a sidechain.
Can you highlight some successful use cases or applications that have leveraged IBC for cross-chain functionality?
Susannah: This year, IBC turned 3 years old, making it the oldest and most widely used interoperability protocol, a significant milestone for our team and a time to reflect on our success over the past 3 years. The recent integration of Cardano has expanded our goal of promoting greater interoperability and showcasing the importance of interoperability in blockchain ecosystems. In addition to the Cosmos SDK chains, IBC has seamlessly integrated with Polkadot, Bitcoinand Solana ecosystems, expanding networks in line with the goal of optimal interoperability. For example, IBC’s connection to the Solana ecosystem, known for its high-speed, low-cost transaction approach, facilitates the secure transfer of assets between multiple ecosystems and allows developers and users to access a range of capabilities from both ecosystems. These partnerships have expanded IBC’s reach and demonstrated its ability to diversify and redefine true cross-chain capabilities.
How does Cardano intend to leverage these cross-chain capabilities to expand its ecosystem and support innovative projects?
Sebastian: The Cardano FoundationThe initiative primarily aims to demonstrate the viability of cross-chain interoperability using a widely adopted protocol such as IBC. This approach serves two purposes: first, it mitigates the risks that community members would otherwise face when exploring the viability of such an approach. Second, it inspires ecosystem projects to develop DApps that can leverage Cardano’s robust public infrastructure while simultaneously interacting with the broader interchain network. These DApps can also benefit from the flexibility offered by application-specific sidechains.
What are the next developments or improvements planned for IBC and how will they impact the broader blockchain landscape?
Susannah: We are working on integrations with many other ecosystems, some publicly announced, such as IBC’s integration with Toki Finance to connect BSC, and others yet to be announced. As more blockchains embrace IBC as a trusted consensus mechanism for interoperability, more ecosystems will be drawn to expand with us. We are grateful to the Cardano team for their contributions and initiative to expand with us and our community. More integrations like these allow our network to mature as various blockchain architectures advance IBC’s offerings.
What are Cardano’s future plans in terms of improving interoperability with other blockchains and how does IBC fit into this strategy?
Sebastian: IBC is just one of many building blocks that are coming to Cardano to improve interoperability. There are several other activities currently underway and others that have already been completed. For example, there is a community project called UniFires that is working closely with the Polkadot ecosystem to bring interoperability between Cardano and Polkadot. Additionally, the VISTA group is working on building an entire interoperability landscape on Cardano to push enterprise adoption to the forefront of existing assets and bridges like WANChain, EVM Sidechains like Milkomeda, and others. IOHK is also pushing hard in this direction with their groundbreaking research on multi-asset consensus and the partnerchains framework.
How does IBC engage with the broader blockchain community to promote and foster adoption of its protocol?
Susannah: IBC is constantly striving for new connections and integrations. We have formed a series of strategic partnerships since IBC’s inception with leading blockchain projects and platforms. With the concept of interoperability at the core of IBC, it was developed as an open-source protocol, inviting developers from around the world to contribute to its improvement and expansion. The open-source approach fosters a collaborative environment where ideas and innovations can be freely exchanged, accelerating the development of robust interoperability solutions. By integrating with major networks, IBC not only showcases its broad technological capabilities, but also leverages multiple blockchain user bases and developer communities from industry-leading projects to drive broader blockchain adoption.
How does the Cardano Foundation collaborate with IBC and other interoperability solutions to foster a more connected and collaborative blockchain ecosystem?
Sebastian: First of all, we are trying to be as transparent as possible, which is why the technical solution has already been made public. On the other hand, we have already received enormous support from organizations such as the Interchain Foundation and projects in the Cosmos ecosystem. Finally, the exceptionally talented developers and the SPO community within Cardano are supporting us with their expertise.
Security is key in blockchain communication. How does IBC ensure the integrity and security of transactions between different chains?
Susannah: To achieve seamless interoperability, developers and users need to be able to leverage the strengths of different blockchains without compromising security or performance. IBC’s security model relies on trust in the consensus of the chains that want to communicate through the use of light clients. Light clients have a first-time trust security model and use inclusion and exclusion proofs to verify whether or not a transaction has taken place on the other chain.
In addition to lightweight clients, the protocol has been formally verified, has undergone third-party review, and implements security practices such as defense-in-depth within the codebase. These features demonstrate the integrity of transactions, reducing the risk of vulnerabilities and ensuring strong security guarantees for other blockchains. Considering these meticulously tested features, IBC achieves a high level of security and efficiency in cross-chain communication, addressing many of the security challenges faced by blockchain ecosystems.
How does Cardano’s governance model support the integration of interoperability solutions such as IBC and what measures are taken to manage potential security risks?
Sebastian: In terms of governance, it is necessary to assess the impacts of parameter changes. The right approach here is to educate users and provide tools that help decentralized governance participants better understand the consequences of their votes.
On the security side, we are currently going through a multi-stage audit process. When it comes to operating a bridge to the broader Cosmos ecosystem, we are partnering with entities that have extensive experience in bridge operations. These partners are able to properly monitor and, in the event of any disaster, implement mitigation strategies or countermeasures.