Hello Cosmonauts! We joined Cosmoverse 2023 and had an incredible time. Over 1,600 attendees came to the event, and every project gave a great presentation showing the future of the Interchain ecosystem.
TOKI received opportunities to give a keynote presentation at the main stage and a tech talk at the Hacker Lounge. In this post, we are sharing the slides from both sessions and the script of the keynote.
Slides
IBC Gets Ready to Land on Ethereum
You can also check out the video here.
IBC-Solidity — Programming IBC in Solidity
Below is the script of our keynote presentation.
Introduction
Hello everyone, thank you for having me. I am Daiki, founder of TOKI. Today, I am thrilled to announce that IBC is ready to land on Ethereum!
I believe this represents not only a significant advancement for the Cosmos community but also a monumental leap for the entire blockchain universe. We’ve taken a significant step towards realizing our ultimate vision: the internet of blockchains.
In this session, I’ll delve into the reasons behind IBC and how #IBCGang, including TOKI, plan to expand IBC beyond Cosmos.
Why IBC?
First, let’s kick things off with this: Why IBC?
Why are we so committed to its expansion? It’s because IBC is a sufficiently modular transport layer that connects all blockchains. Its inherent design features are geared towards realizing this vision.
While IBC is a standard, it allows for diverse implementation approaches, especially from a security model perspective. “Modularity” has become a buzzword lately, and for a good reason. IBC has been modular since its inception.
Moreover, IBC possesses unique features that other bridges lack, such as various security models, dynamic connections, and a permissionless relayer. These features are crucial for the Internet of Blockchains, which other designs find challenging to achieve.
That’s our motivation for pushing IBC beyond the Cosmos ecosystem.
The Internet of Blockchain
Before diving deeper, let’s revisit our vision: the internet of blockchains. This vision paints a vibrant picture.
We foresee a digital economy expanding to hundreds of trillions of dollars, encompassing the entire blockchain spectrum. Everything we know, from debt, securities, and funds to even currencies, will digitize. But it doesn’t end there: IDs, games, voting systems, and more will all be part of the blockchain universe.
Given this, the number of blockchains will multiply exponentially from today’s count, with millions thriving. In this scenario, blockchains will emerge and disappear daily, much like today’s smartphone apps.
Our challenge? To connect this vast number of blockchains securely and permissionlessly. This is the grand vision of the Internet of Blockchains we fervently believe in.
High-level Architecture of IBC
While many of you are IBC experts, for those needing a refresher, let’s review the high-level architecture of IBC. IBC essentially has three layers: the app layer, core layer, and client layer. The app layer focuses on various application standards like ICS-20 for token transfers, ICA, and more. The transport layer primarily manages packet transfers through channels linked with connections. Meanwhile, the client layer oversees the packet verification process, ensuring secure IBC connections.
IBC also defines other components like relayers, packets, handlers, and more.
However, the critical standards that shape its nature are the client and connection, defined by ICS-02 and ICS-03. These are what set it apart from other bridges.
Various Security Models
Given the vision and high-level architecture, let’s explore the features of IBC.
IBC can establish various security models as defined by ics-02, based on the requirements of app chains or dApps. While light client verification is often emphasized when discussing IBC, it’s just one facet.
For instance, the Tendermint light client is a specific implementation defined by ICS-07, while the solo machine client follows ICS-06. This flexibility allows us to set up diverse security models, such as zk-proof, TEE-proof, and multi-sig, in addition to light clients, based on application or chain demands. All these implementations align with ics-02.
While light clients offer the highest security, it’s currently impractical to natively implement them on every chain, especially Ethereum, due to high gas costs. However, this doesn’t mean IBC implementation is impossible. We can start with a security model compliant with ICS-02 and upgrade as needed.
IBC’s ability to support diverse security models means app chains and dApps can choose the best security model for their needs.
As illustrated in the diagram below, some connections use native light clients, while others employ ZK-proof, TEE-proof, or multi-sig.
Interestingly, other bridges are growing faster than IBC, often at the expense of security. I’m not suggesting we emulate them. Instead, we should adopt multiple strategies to accelerate IBC implementation while maintaining optimal security and adhering to ics-02.
Dynamic Connection
Another key feature is the Dynamic Connection.
This is vital for the internet of blockchains. Applications can effortlessly and instantly establish IBC channels using multiple pre-existing connections as defined by ICS-03.
Consider the following scenario: An application on blockchain A wishes to connect with apps on blockchain B. A doesn’t need a direct connection. If A is connected to C, it can establish a channel to apps on B via connections owned by blockchains C and D, without needing their permission.
These permissionless and hopping functionalities for establishing connections and channels will lead to dynamic network expansion when a massive number of blockchains are running.
Imagine a world without a standardized connection like existing bridges. Connections would be overly reliant on specific bridge chains, limiting network expansion due to their permissioned and standalone connections.
Dynamic connections are essential for keeping the internet of blockchains open and adaptable for applications, a feature enabled by ics-03.
Permissionless Relayer
Having discussed various security models and dynamic connections, it’s clear these features enable another essential component: the permissionless relayer.
As many of you might recognize from the diagram, we use a relayer to transfer packets between chains through a channel. Anyone can operate this relayer. Since security and connections are abstracted, the relayer’s responsibility is minimal, focusing only on availability. As a result, packet relay costs are automatically optimized based on demand and supply dynamics.
In contrast, if app chains heavily depend on bridge chains lacking these features, packet relay costs won’t be optimized. These bridges are inherently designed to maximize revenue, and each bridge chain aims to incentivize its token holders and grow its ecosystem.
If a few bridges dominate connection shares, it’s easy to predict that fees will rise due to the absence of adjustment mechanisms.
Considering all these factors, in addition to security and connection, a permissionless relayer is essential for the internet of blockchains.
IBC for the Internet of Blockchains
As I’ve outlined, IBC possesses critical features that make the internet of blockchains feasible. It’s a modular standard that can be built in various ways.
With its diverse security models, dynamic connection, and permissionless relayer, IBC has the potential to revolutionize the Internet of blockchains.
We no longer need other standards or protocols. Let’s build from where we stand.
IBC Gang!
We’re witnessing numerous teams working on a wide array of IBC-related modules. Informal Systems is focusing on IBC cores, while Strangelove recently unveiled their IBC roadmap. Composable Finance, Polymer Labs, Landslide, and others are forging connections with different ecosystems.
These initiatives are commendable and could form the largest interoperability community. However, we need more teams and use cases to accelerate IBC adoption. Join us and let’s build together.
Announcement
TOKI has been dedicated to IBC core and clients development for the past three years. Today, we’re proud to share one of our most significant achievements: the Ethereum and Cosmos IBC connection! IBC finally gets ready to land on Ethereum.
This marks a pivotal milestone not just for the Cosmos community but for the entire blockchain universe. We hope this endeavor will boost IBC adoption.
We’ve made our GitHub repository public. Please scan the provided QR code to access it and try out the demo. We eagerly await your feedback, so don’t hesitate to share your thoughts. Also, our testnet will be live this quarter, so stay tuned.
High-level Architecture
Let me introduce the high-level architecture that facilitates the Ethereum connection. To reduce the light client verification cost, we employ TEE, a hardware-based tamper-proof solution, instead of running the light client on Ethereum. We’ve named it LCP (Light Client Proxy). Thanks to LCP, gas costs will drop to 190K for update client and 17K for verifyMembership, making it highly efficient.
We’ve also developed an Ethereum light client within the LCP, IBC-solidity, and an LCP client compliant with ICS-02 to validate proofs generated within the LCP. All these components are designed to establish an IBC connection with Ethereum. To operate multiple LCP nodes, we’re collaborating with leading validators like All Nodes, Everstake, and more.
Importantly, anyone can run LCP nodes, ensuring we don’t compromise IBC’s core features.
Stablecoins through IBC
Furthermore, we plan to use IBC to enable stablecoin transfers between Ethereum and Cosmos, similar to Noble. As some of you might know, TOKI has partnered with MUFG to issue stablecoins on multiple blockchains. Our goal is to offer this stablecoin with seamless token transfer functionality via IBC.
Soon, users will be able to make a single-click deposit on Cosmos Appchains from Ethereum through IBC. I believe this will be a game-changer for IBC adoption.
One More Thing
Although we announced this initiative last week, I’m pleased to share that we’ve completed the development of a light client for BSC. This means we can now establish connections among Cosmos, Ethereum, and BSC via IBC!
Our vision is truly coming to life.
Lastly
Our journey doesn’t end here. We’re committed to expanding IBC to L2s, Avalanche, Solana, and more, in collaboration with other #IBCGang. If you’re interested in TOKI, please scan the provided QR code to visit our website, or feel free to DM us.
Thank you!
