Cosmos bridge Inter-Blockchain Communication (IBC) is now live on Terra (LUNA) |
The Cosmos Hub is the first decentralized platform that facilitates interoperability between different blockchains. It gives access to cross-chain token transfers and allows for multi-chain applications. The first IBC bridges are now live on Terra, with support for other cryptocurrencies coming soon.
Cosmos has announced the launch of Inter-Blockchain Communication (IBC) on Terra. This functionality will allow users to save Cosmos tokens and also send them back into their original coin, Ether.
The Inter-Blockchain Communication (IBC) protocol became active on the Terra (LUNA) mainnet on October 21.
The Tendermint protocol allows sovereign chains to connect with one another while also facilitating token transfers between Cosmos (ATOM) and other IBC-compatible blockchains.
IBC is intended to greatly increase Terra’s use case by improving the network’s interoperability capacity, allowing UST and LUNA to enter the Cosmos ecosystem.
Highways that connect to each other
The notification on Twitter said, “Proposal 128 to launch IBC on Terra has passed, indicating that IBC is now active on the Terra mainnet.”
1/ Proposal 128 to launch IBC on Terra has been approved, indicating that IBC is currently operational on the Terra mainnet. https://t.co/4aIjkdDBBH
Keep an eye out for when the relayer channels are set up and users may start moving tokens from Station to Terra and the Cosmos ecosystem.
— Terra (UST) — Terra (UST) — Terra (UST) — Terra (UST LUNA (@terra money) (@terra money) (@terra money) (@terra money) (@terra money) (@terra money) (@terra_
Terra engineers said that “asset transfers, data availability proofs, and more may all be effortlessly moved between Terra and IBC-enabled chains in the Cosmos ecosystem.”
“With $UST as its flagship stablecoin, asset quote currency, and exchange medium,” they added in a thread, pointing out how Cosmos, as a decentralized network of independent parallel blockchains, offers a fruitful new field for Terra’s native stablecoin, UST.
LUNA is the second crypto in the Cosmos ecosystem, according to Cosmos Cap, which tracks market capitalization.
Terra’s native cryptocurrency, with a market worth of $16,8 billion, is one step behind Binance Coin (BNB).
Climbing the ladder of decentralized stablecoins
This achievement comes on the heels of the successful introduction of Wormhole V2 Terra compatibility, which allows UST and LUNA to be effortlessly migrated to Ethereum, Solana, and Binance Smart Chain via a single unified interface.
The friction between Terra’s native cryptos migrating from one blockchain to another is anticipated to be greatly reduced with both debuts.
According to Do Kwon, co-founder and CEO of Terraform Labs, the South Korean firm behind the blockchain project Terra, who anticipates increased demand for UST in cross-chain contexts, the protocol’s native stablecoin may reach a market worth of $10 billion by the end of the year.
The present regulatory scrutiny of centralized stablecoins, according to Kwon, is increasing demand for decentralized stablecoins, which depend on blockchain-based collateral for stability.
Terra’s UST, with a market valuation of $2.74 billion, is the second-largest decentralized stablecoin behind DAI.
While Kwon’s projection of a $10 billion market valuation for UST this year may look too optimistic, beating DAI, which has a market worth of $6.47 billion, appears to be within reach.
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