Composable and IBC expansion to Ethereum, Solana and Near
Thread986 words
Argues that IBC extended beyond Cosmos, via ZK-verified Tendermint and Ethereum light clients on Composable, can unify fragmented L2, Cosmos and Substrate ecosystems and make centralized bridge designs hard to justify.
Key claims
L2 TVL grew from USD 4.6B to USD 15B in 12 months
IBC moved over USD 1B in the last month
Composable uses ZK-SNARKs for efficient validator signature verification
We are going multi-chain! 🔀
>30 L2s live & numbers going 📈
>50 Cosmos chains & numbers going 📈
>80 Substrate chains & numbers going 📈
So, what if I told you we can make all these ecosystems trustlessly composable?
Big? Bigger! This is the missing piece of the puzzle! 🧵
@ComposableFin 1/ Frameworks like Polkadot’s Substrate or the Cosmos SDK have abstracted complexity to build app-specific L1s
This gave birth to entire ecosystems of app-specific L1s.
2/ Now, rollup tech stacks like the OP Stack, the Polygon CDK or Matter Labs’ ZK Stack translate this concept to L2
This significantly lowers barriers of entry.
Building a L2 that ultimately inherits from security has never been easier.
3/ Additionally, modular building blocks like DA layers and shared sequencers are maturing.
Rollup-as-a-Service providers are emerging.
4/ Today, you can literally piece together your modular network configuration through a dropdown menu on a Web UI.
You don't even need to code.
The rollup trend will only accelerate.
5/ It already reflects in the data too.
TVL on L2 has grown from USD 4.6B to USD 15B in the last 12 months alone.
And that's during a bear market! 🤯
6/ But in a world of...
🔹 Cosmos L1 chains
🔹 Substrate L1 chains
🔹 Polygon CDK L2s
🔹 OP Stack L2s
🔹 ZK Stack L2s
🔹 etc.
How can we effectively prevent fragmentation of liquidity & users?
7/ How can we create a seamless UX across a unified backend of chains akin to a monolithic chain like Ethereum beyond shared tech stacks?
How can we transfer value across these execution layers without compromising on security?
8/ The answer to all three questions is the same:
@ComposableFin and an IBC expansion beyond the Cosmos! 🌐
9/ What is IBC you are asking? 🤔 👇
IBC is an open‐source protocol for relaying messages between independent distributed ledgers.
10/ It allows heterogeneous chains to exchange data and value through a system of light clients and relayers in a trust-minimized manner.
11/ IBC forms secure channels between blockchains, enabling the transfer of data and tokens.
It relies on light nodes to validate messages on the source chain before their transfer, ensuring security and finality.
12/ If you want to learn more about IBC, check out my blog post about @ComposableFin's IBC expansion here! 👇
🔗 bit.ly/ComposableIBC
13/ What's important to note though, is that IBC is different from other generic message passing (GMP) protocols.
IBC minimizes trust by relying solely on the validator sets of the involved chains, avoiding third-party dependencies.
14/ It stands at the heart of the Cosmos ecosystem, across which it has transferred over USD 1 Billion in the last month alone!
And that's just the beginning! 🚀
15/ IBC's flexibility allows support for any chain with deterministic finality.
However, integration challenges with Ethereum, particularly its pre-PoS era, were notable due to the complexities of PoW.
16/ This changes with Ethereum's shift to PoS and @ComposableFin's advancements in light client technology.
Finally an IBC's integration with Ethereum and its L2 ecosystems is becoming feasible.
But how does it work? 🤔 👇
17/ The Composable Cosmos chain's Casper light client utilizes the Sync Committee for block validation, while a Tendermint light client on Ethereum verifies Cosmos chain block headers.
18/ However, verifying all the signatures of the Cosmos chain's validator set, would be infeasible in a Solidity contract on Ethereum.
That's why @ComposableFin is using ZK-SNARKs for efficient signature verification, verifying the signature set in a single succinct proof.
19/ So why is this a game-changer? 🤔 👇
By implementing a Solidity-based Tendermint light client across various EVM rollups, Ethereum and its rollup ecosystem will be connected to networks like @Polkadot, the @Cosmos and beyond in a fully trust-minimized way.
20/ This expansion of IBC will make it increasingly difficult for more centralized bridge designs to compete.
Why rely on additional trust assumptions if you don't have to?
Why fragment security if we can have one trust-minimized standard across ecosystems?
21/ IBC's capability to transfer arbitrary data is key.
It allows not just the transfer of value but also enables cross-chain user interactions and smart contract calls.
This opens up possibilities for cross-chain dApps that don't compromise on trust and provide a seamless UX.
22/ Want to transfer funds? 💸
IBC can do it.
Want to swap assets across chains? 🔄
IBC can do it.
Want to take out a loan on chain B with collateral on chain A? ⛓
IBC can do it.
23/ This breaks up the siloed nature of these previously isolated ecosystems.
Applications across ecosystems become interconnected and are able to frictionlessly tap into the liquidity of every chain.
Similarly, users get access to new opportunities and apps.
24/ Beyond Ethereum, @ComposableFin is also extending IBC to other major chains like @NEARProtocol & soon @Solana.
This expansion bolsters IBC's potential to be a standard for secure cross-chain message passing.
25/ It will be a core feature, powering @ComposableFin's cross-chain intent settlement infrastructure.
Stay tuned for a deep dive on how Composable will become a key piece of infrastructure in an intent-centric multi-chain future! XX
26/ The interoperability framework also features @Picasso_Network, a Substrate-based @kusamanetwork parachain.
It serves as an interoperability hub linking Polkadot, the Cosmos, and others (e.g., Near) through IBC.
27/ As the only CosmWasm and IBC-enabled parachain, Picasso boasts unique capabilities.
Thanks to XCMP, it can also securely interact with other Substrate-based chains, further enhancing cross-chain communication.
28/ Read my full blog post about @ComposableFin's IBC expansion here! 👇
🔗 bit.ly/ComposableIBC
29/ That's a wrap for today! I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ and @ComposableFin to stay up to date! 👀
Like/Repost of the below post is also highly appreciated! 🙏👇
30/
Tagging some chads you should definitely follow! 🫡👇
@Louround_
@0xDinoEggs
@CryptoMaestro
@andyyy
@0xSalazar
@poopmandefi
@ShivanshuMadan
@MTorygreen
@hmalviya9
@DOLAK1NG
@kunalgoel
@WinterSoldierxz
@Flowslikeosmo
@rebel_defi
@CosmosHOSS
@TheDeFinvestor
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What came next · since 22 Nov 2023
Since then
Zero has written 3 more pieces on Composable Finance since this one.
- Composable MANTIS: cross-chain MEV and intent settlement across IBC chainsOn Composable Finance
- Composable cross-chain intents: MANTIS and the Composable VMOn Composable Finance
- Composable MANTIS: cross-chain intent settlement over IBCOn Composable Finance