Picasso Network integrates IBC with Ethereum, improves cross-chain interoperability

By crypto.news
about 2 months ago
PICA ETH OSMO READ ATOM

In collaboration with the Composable Foundation, Picasso Network has announced the integration of the Inter-Blockchain Communication protocol with Ethereum.

The integration allows for transferring assets and data between Ethereum (ETH) and the Cosmos ecosystem, facilitating cross-chain interoperability.

“By connecting Ethereum with Cosmos through IBC and designating Osmosis as the primary liquidity hub, we are setting the stage for a new chapter in DeFi,” stated Henry Love, Executive Director of the Composable Foundation.

The effort aims to enhance the security of bridge operations and expand the possibilities for liquidity and innovation across blockchain networks, which aligns with the team’s goals for 2021.

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Osmosis has been selected as the primary destination for Ethereum assets within the Cosmos ecosystem. The choice is based on its role in the Cosmos (ATOM) network as a defi hub, its liquidity pools, defi offerings, and its contribution to the volume of IBC, which includes facilitating over $30 billion in trading volume.

Aaron Kong, Growth & Strategy Lead at Osmosis Labs, highlighted the significance of this integration for user experience and functionality within the defi ecosystem.

The integration aims to promote IBC Everywhere, leveraging the IBC protocol’s capabilities for secure and reliable cross-chain communication. Selecting this approach intends to improve security over centralized bridge solutions and foster collaborations across the Ethereum and Cosmos ecosystems.

In January, the Cosmos Hub community voted to set the ATOM token’s minimum inflation rate at 0% to preserve ATOM’s value by mitigating seller pressure and security overpayments. The vote passed with nearly 95% support.

Previously, the community had capped ATOM’s annual inflation at 10% to maintain its value, which impacted staking profitability. Despite reduced staking yields, validators remained profitable and could adjust transaction fees to cover costs.

Read more: Cosmos community votes to set ATOM’s minimum inflation at 0%

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