Wormhole Foundation New Bridge To Cosmos Ecosystem
The Wormhole Foundation has recently launched a new application-specific blockchain (appchain) into the Cosmos ecosystem. It is the first appchain connecting liquidity and users from over 20 blockchains to any Cosmos application.
This is accomplished by integrating with the Inter-Blockchain Communication Protocol (IBC), enabling users to bridge funds to any Cosmos appchain without extra fees.
Appchains are blockchains built on existing ones or explicitly designed for use within a particular application or organization.
This launch aims to expand accessibility within the Cosmos ecosystem, simplifying the integration of assets from Ethereum, Solana, and various other chains.
The newly introduced blockchain has been named Gateway, which will streamline the process for developers and users to onboard tokens onto any Cosmos chain. According to the official announcement, its primary objective is to foster the growth of the Cosmos ecosystem by driving liquidity and facilitating seamless token integration.
Instead of using existing blockchains like Ethereum, developers can create custom blockchains for specific applications, which can be continuously upgraded to meet user requirements.
In 2022, Wormhole entered the Cosmos ecosystem by integrating with Injective, a Cosmos-based blockchain. However, with this latest launch, the impact extends across the entire network of appchains.
Wormhole Gateway To Benefit Two Types Of Users
The Wormhole Gateway caters to two user categories. The two kinds are Cosmos developers seeking seamless onboarding of users and liquidity from other ecosystems, such as Ethereum and Solana, and other users aiming to bridge their assets to or from the Cosmos network.
The Gateway will empower both kinds of users to bridge assets between different Cosmos chains effortlessly. Although direct interactions with the chain interface may not occur, the background technology efficiently handles cross-chain transfers.
The Gateway focuses on transaction transparency and security, ensuring advanced protection for Wormhole messages. This, in turn, leads to improved transparency and sovereignty for all Wormhole activities.
The system enables an entity to bridge a token to any Cosmos chain through the Gateway. Once bridged, the asset is locked, and a new ICS-20 (Inter-Chain Standards) token is created on the Gateway; these standards aim to facilitate interoperability between different blockchains within the Cosmos network.
This new token is then sent to the destination chain using Inter-Blockchain Communication (IBC). The Wormhole Foundation opted to utilize the Cosmos SDK due to its incorporation of IBC light clients, which enhances security, transparency, and sovereignty for Wormhole operations.
The Gateway’s integration with the Cosmos ecosystem only requires a straightforward IBC connection. It does not impose any extra bridging fees on users, making it a cost-effective choice for them.
Featured image from UnSplash, chart from TradingView.com
