What is the IBC protocol?

IBC stands for Inter-Blockchain Communication. It was developed by IBC contributors like Tendermint, Interchain Foundation, and Agoric Systems as part of the larger Cosmos network ecosystem.IBC connects different blockchains together in the simplest form possible. Until now, blockchains like Bitcoin, Ether and many others have operated in their own silos, or each blockchain is its own deserted island, disconnected from the rest of the world or other blockchains and unable to communicate. It becomes quite lonely. the IBC protocol is the vehicle for blockchain social networking (communicating, exchanging tokens and information). IBC is a bit like the TCP protocol is to the Internet. Before TCP, the Internet was a collection of separate computer networks that could not communicate well with each other. Along with IP, TCP/IP governed how data was sent and routed over computer networks. Today, TCP/IP seamlessly underpins the way we consume and enjoy the Internet every day. Likewise, IBC governs how blockchains communicate. For this reason, Cosmos is often referred to as the “blockchain Internet”.

 

How does the IBC work? Each blockchain that wants to communicate with each other sends and receives headers to keep track of the set of verifiers. Simply put, they run a lightweight client to each other to keep track of each other’s blockchains/ledgers. When sending tokens from one blockchain to another, the tokens must first be: pledged (held in escrow) in preparation for a transaction (i.e. 100 ATOM); proof must be sent to the receiving blockchain that the tokens have been pledged; the receiving chain must validate the proof of the 100 pledged ATOM tokens; and if the proof is validated, the 100 ATOM tokens are frozen/ secured on the original chain, while a “replacement” (e.g., token) for 100 ATOMs is created on the new chain. In order to be compatible with IBC, the blockchain must have Fast Finality. bitcoin and ethereum are proof-of-work systems and do not have this capability. Each blockchain must maintain its own set of verifiers. In doing so, the blockchain maintains better interoperability with applications.

 

The Custer Network addresses the balance between decentralization, scalability and security, with the IBC2.0 protocol in the ecosystem application independent blockchains in the Custer Network ecosystem to connect and transact while maintaining autonomy.