Picasso Network and the Composable Foundation have worked together to add the Inter-Blockchain Communication (IBC) protocol to Ethereum. This is a Big step forward for cross-chain communication and a significant development in the blockchain space.
This integration makes moving assets and data between Ethereum (ETH) and the Cosmos environment easy. It starts a new era for blockchain innovation and decentralized finance (DeFi).
Picasso’s Influence on the Future of DeFi Collaboration – Henry Love’s Perspective
As the Executive Director of the Composable Foundation, Henry Love, said, “By connecting Ethereum with Cosmos through IBC and designating Osmosis as the primary liquidity center, we are setting the stage for a new chapter in DeFi.”
The main goal of this project is to make bridge operations safer while increasing liquidity and encouraging new ideas across blockchain networks. This perfectly fits with the goals the Picasso Network team set for 2021.
Osmosis, known for being a DeFi hub that is very important to the Cosmos (ATOM) network, has been picked as the main place Ethereum assets will go in the Cosmos ecosystem. This choice was made because Osmosis has strong liquidity pools, a wide range of DeFi offerings, and a significant effect on the volume of IBC, allowing over $30 billion in trade to happen.
Aaron Kong, Growth & Strategy Lead at Osmosis Labs, discussed how important this integration is for improving the user experience and usefulness in the DeFi ecosystem. He also discussed the groundbreaking possibilities.
The integration aims to support “IBC Everywhere” by using the IBC protocol’s secure and reliable cross-chain communication features. This method should be safer than centralized bridge options and make it easier for people from the Ethereum and Cosmos ecosystems to work together.
Nearly 95% of the Cosmos Hub community voted to set the ATOM token’s minimum growth rate at 0% earlier this year. This was a very important decision to protect ATOM’s value by reducing seller pressure and security overpayments.
This arrived after the decision to limit ATOM’s yearly inflation to 10%, which was made to keep its value even though it hurt the profitability of staking. Even though staking returns went down, validators still made money, showing they can adapt and keep going even when market conditions change.
Adding IBC to Ethereum is an important step forward for blockchain interoperability. It allows autonomous ecosystems to work together better, have more Funds, and generate new ideas. As decentralized finance changes, projects like these can strengthen and connect the blockchain environment.
