interBTC will provide BTC liquidity for Cosmos and all IBC-compatible chains
Interchain communication is one of the main themes of the summer. The ultimate solution for overcoming blockchain fragmentation. It enables interoperability and the transmission of value and information between different blockchains.
We are hence excited to announce that interBTC is coming to the Cosmos ecosystem and will be available to any chain that supports the IBC cross-chain standard.
interBTC: Bitcoin on any blockchain
Interoperability is at the heart of interBTC, through which Interlay aims to bring Bitcoin to all DeFi platforms and allow anyone to use their BTC anywhere. Built initially on Polkadot, interBTC enables any Polkadot, Ethereum, and other networks to access it.
Following the DeFi way, interBTC is trustless, secured by insurance, and capital-efficient. Vaults, who ensure BTC is locked on Bitcoin, earn competitive APY and anyone can become a Vault, anytime.
IBC: The Cosmos cross-chain standard
IBC is a set of interoperability standards, allowing any two smart-contract capable chains to communicate through cross-chain payments, as well as data and information transfers. IBC was devised by the Cosmos ecosystem to allow CosmosSDK chains to share functionality and liquidity.
interBTC + IBC = Bitcoin on any Cosmos chain
By adding IBC support to interBTC we allow any IBC compatible chain — both within the Cosmos ecosystem and outside — to access trustless Bitcoin liquidity.
This integration goes hand in hand with our vision of bringing interBTC to all DeFi platforms: while the core logic is hosted as a Polkadot parachain, interBTC can be moved to other networks via cross-chain protocols such as IBC.
“Cosmos is the next logical step for interBTC, apart from Ethereum. It’s a multi-chain ecosystem similar to Polkadot, focused on tech and product — and aligns with our vision of cross-chain decentralized finance.” — Alexei, CEO of Interlay
Cosmos boasts a number of top-teams working on decentralized cross-chain exchanges — the ultimate first use case for interBTC, including Gravity DEX, Osmosis, and the recently announced Emeris.
“A Cosmos Bitcoin bridge will be enabling infrastructure, bringing deep liquidity to the Cosmos ecosystem and expanding the suite of IBC-enabled DeFi. As stewards of Cosmos, the Interchain Foundation is incredibly excited to help bridge the flourishing Bitcoin and Cosmos communities.” — Billy Rennekamp, Grant Manager of Interchain Foundation
Fast forward
Looking into the potential of new use cases on Cosmos, Interlay — the company behind interBTC and a receiver of the Interchain Foundation grant, will prepare a technical feasibility report for InterBTC to Cosmos IBC and a proof of concept implementation with selected IBC-compatible chains. To build an IBC bridge and bring Bitcoin to Cosmos, the team will use the ibc-rs module and the IBC substrate library.
Soon, interBTC will become an essential addition to the Cosmos ecosystem and contribute to making it accessible to wider audiences.
Further information
- Cosmos Grant: buff.ly/3ycgXvs
- Blogpost by Interlay CEO Alexei Zamyatin comparing IBC, XCMP and Optics: https://alexeizamyatin.medium.com/interoperability-deep-dive-xcmp-vs-ibc-vs-optics-e365c72180cb
Stay tuned for more information on interBTC:
- Twitter: @interlayHQ and @interBTC
- Discord: https://discord.com/invite/KgCYK3MKSf
- Telegram: https://t.me/interlay_community
- Or join our mailing list https://www.interlay.io/
Bitcoin is coming to Cosmos was originally published in Interlay on Medium, where people are continuing the conversation by highlighting and responding to this story.
