The Cosmos vision is for a new token economy on a platform for high-quality digital assets to move throughout a network of interconnected blockchains. In the early days of Cosmos , the ability of the broader blockchain and financial community to access Cosmos assets and vice versa will be limited. This is in part due to the constraints of centralized exchanges which require users to register, custody assets, and manage the asset’s life-cycle. The lack of interoperability is not in line with the Cosmos vision of a highly engaging ecosystem of assets working together.
A year ago, we began investigating the Interledger Protocol (ILP) as a solution for interoperable payments and value transfer between any blockchain in a seamless way. A number of projects have worked to bring interoperability and liquidity to digital networks over ILP in different contexts. Organizations like Ripple and the Bill & Melinda Gates Foundation have seen the potential of ILP and use it in production in private networks. The challenge with ILP was establishing a public blockchain implementation that was commercially viable and scalable.
Kava solved this by creating an ILP link to major public blockchains like BTC and ETH. Kava is the first Interledger solutions provider to bring interoperability and liquidity to blockchains, wallets, and exchanges. Through Kava’s Interledger solutions, Cosmos accelerates its vision of open access between the Cosmos ecosystem and the broader blockchain community, while we continue development on Interblockchain Communication (IBC).
The partnership with Kava enables Cosmos projects to connect with a marketplace of services and users over Interledger. Initially, it will require a high-touch integration between Cosmos and Kava but the future goal is a simple plug-in process for any project built on Cosmos.
“Kava has admired Tendermint for a long time and believes in the importance of building a blockchain framework for mass adoption. We are thrilled to help Cosmos extend its reach to new markets, providing the ecosystem with access to new users, liquidity, and services.” — Scott Stuart, Kava CEO
We see Kava as a key contributor to integrate Cosmos assets with ILP based on their successful track record with BTC, ETH and XRP. Additionally for Cosmos projects, the partnership with Kava results in a larger ecosystem of interconnected blockchains expanding access to users, liquidity, and services available within the Cosmos ecosystem and connecting us with major communities like BTC, ETH, and XRP. Working with Kava is a critical next step in continuing with our vision of building a new token economy for the future.
To learn more about Kava, Interledger, and what this means for the Cosmos ecosystem, sign-up for our webinar with the Kava and Tendermint team on December 11th.