• Inter-blockchain communication (IBC) is a technology that enables various blockchains to talk to each other. It lets users directly move assets and data between blockchains, skipping centralized exchanges.
  • IBC is used to diversify crypto holdings across multiple blockchains, lowering risk and boosting potential gains.

Blockchain has enormous potential, but it needs to be solved. Each blockchain operates independently, like separate islands lacking the ability to communicate with each other. This disconnect hinders the technology’s promise of seamless interaction.

In March 2021, something significant happened. A new protocol called Inter-Blockchain Communication (IBC) was created. It’s like building bridges between these islands. It envisions a future where diverse blockchains can connect and form a vast network of interconnected chains, even with varying codes and structures. This breakthrough holds the key to blockchain’s mass adoption.

What Is Inter-Blockchain Communication? 

The Inter-Blockchain Communication (IBC) protocol is vital to solving blockchain interoperability. It acts like a relay, connecting different blockchains and creating a Cosmos network. In December 2021, 25 blockchains were connected through Cosmos, which is expected to jump to 200 next year. This rapid growth shows how vital interoperability is for blockchain adoption.

IBC as a Key for Blockchain Mass Adoption

The Inter-Blockchain Communication (IBC) protocol is poised to drive mass adoption of blockchain technology. It connects isolated blockchain networks, enabling institutions like banks, insurance companies, and more to collaborate seamlessly. This fosters efficiency, transparency, and accountability, eliminating intermediaries. IBC’s ability to bridge differences in coding promotes interoperability and scalability, making it a catalyst for blockchain adoption across industries.

Inter-Blockchain Communication Protocols

Several innovative projects and protocols are pioneering solutions for seamless inter-blockchain communication. These solutions aim to break down the barriers between blockchain networks, enabling users to diversify their crypto assets effortlessly.

Cosmos (ATOM)

Cosmos is all about making different blockchains work together. They use a technology called IBC to let these blockchains share things like assets and data. The Cosmos Hub is like a central hub that helps these blockchains in the Cosmos group talk to each other.

Polkadot (DOT)

Polkadot, designed by Dr. Gavin Wood, co-founder of Ethereum, employs a unique parachain structure to enable communication between independent blockchains. Parachains connect to the Polkadot Relay Chain, fostering interoperability while maintaining network security. Polkadot’s interoperability features are highly anticipated in the crypto space.

Chainlink (LINK)

Chainlink, primarily known for its Oracle services, is expanding its role in enabling blockchain interoperability. Its Chainlink Cross-Chain Interoperability Protocol (CCIP) is designed to connect various blockchains, ensuring secure and reliable data transfer across networks. Chainlink’s decentralized oracles also play a vital role in providing accurate data for cross-chain operations.

Wanchain (WAN)

Wanchain specializes in cross-chain interoperability solutions. It offers a framework for connecting blockchains, including Bitcoin, Ethereum, and others. Through its unique technology, Wanchain enables users to create and manage assets that can be moved across various blockchains, expanding their crypto portfolio options.

Interoperability and Cutting Costs of Transactions

Interoperability is vital for blockchain to reach its full potential. It allows seamless data sharing, efficient smart contract execution, user-friendly experiences, partnerships, and problem-solving. In sectors like trade, finance, and healthcare, separate blockchains can be inefficient and costly to communicate with. For example, in cryptocurrency trading, users often rely on third-party exchanges to convert between cryptocurrencies due to the lack of direct communication between networks.

The Inter-Blockchain Communication (IBC) protocol and specialized “peg zones” in the Cosmos network address this issue. It enables direct transfers between compatible and even incompatible blockchains, reducing the need for intermediaries and transaction costs. This streamlines operations enhances supply chain efficiency, and ultimately benefits businesses executing numerous transactions with stakeholders.

In summary, interoperability through IBC eliminates intermediary costs, simplifies processes, optimizes supply chains, and improves the delivery of products and services to the public.


The blockchain ecosystem is rapidly evolving with significant advancements. Emeris, set to launch in spring 2022, is a cross-chain DeFi tool in Cosmos that acts as a unified portal for crypto apps across different blockchains. It introduces a browser extension wallet for managing tokens seamlessly and integrating various protocols and DEXs, promising frictionless crypto trading. 

Cosmos, through IBC, aims to connect significant blockchains like Bitcoin, Ethereum, Polkadot, and Celo, creating a network for various tokens in the Internet of Blockchains. Additionally, Cosmos plans to expand beyond its ecosystem to link with external blockchain networks, offering limitless possibilities and reshaping the business landscape.

Leave a Comment