Picasso Network and Composable Foundation Integrate IBC Protocol with Ethereum

Picasso Network has integrated the Inter-Blockchain Communication (IBC) protocol with Ethereum, enabling asset and data transfer between Ethereum (ETH) and the Cosmos ecosystem. This integration aims to enhance cross-chain interoperability and facilitate liquidity and innovation across blockchain networks, with Osmosis serving as the primary liquidity hub for Ethereum assets within Cosmos.

Picasso Network and Composable Foundation Integrate IBC Protocol with Ethereum

In a groundbreaking collaboration, Picasso Network and the Composable Foundation announce the integration of the Inter-Blockchain Communication (IBC) protocol with the Ethereum blockchain. This integration establishes a secure and seamless bridge between the Ethereum (ETH) and Cosmos ecosystems, facilitating the transfer of assets and data across these two prominent blockchain networks.

"By connecting Ethereum with Cosmos through IBC and designating Osmosis as the primary liquidity hub, we are initiating a transformative chapter in decentralized finance (DeFi)," declared Henry Love, Executive Director of the Composable Foundation.

This integration marks a significant milestone, enabling the secure movement of assets and data between Ethereum and Cosmos, fostering cross-chain interoperability within the broader blockchain landscape. The integration aligns with the foundations' commitment to enhancing the security of cross-chain operations and expanding the horizons of liquidity and innovation across blockchain ecosystems.

Osmosis has been strategically selected as the primary destination for Ethereum assets within the Cosmos ecosystem. This decision recognizes Osmosis's pivotal role as a DeFi hub within the Cosmos (ATOM) network, its robust liquidity pools, diverse DeFi offerings, and its significant contribution to the overall volume of IBC transactions, which has surpassed an astounding $30 billion.

Aaron Kong, Growth & Strategy Lead at Osmosis Labs, emphasized the transformative impact of this integration on user experience and the overall functionality of the DeFi ecosystem. "This integration aligns with our vision of 'IBC Everywhere,' leveraging the inherent strengths of the IBC protocol for secure and reliable cross-chain communication," Mr. Kong stated.

The adoption of IBC over centralized bridge solutions is a deliberate choice, driven by the protocol's proven ability to enhance security and facilitate seamless collaboration across the Ethereum and Cosmos ecosystems.

In a parallel development, the Cosmos Hub community recently voted overwhelmingly (with nearly 95% support) to establish a 0% minimum inflation rate for the ATOM token. This decision aims to preserve the value of ATOM by mitigating selling pressure and reducing unnecessary security overpayments.

Previously, the community had capped ATOM's annual inflation at 10% to maintain its value, potentially impacting staking profitability. However, despite the reduced staking yields, validators have remained profitable through adjusting transaction fees to cover operational costs.

This concerted effort to foster a secure and interconnected blockchain landscape underscores the growing momentum and maturity of the decentralized finance ecosystem. The integration of IBC between Ethereum and Cosmos represents a significant step forward, empowering developers and users alike to explore the full potential of cross-chain interoperability.

As the blockchain industry continues to evolve, Picasso Network and the Composable Foundation remain committed to driving innovation and enhancing the user experience within the DeFi space. This groundbreaking collaboration is a testament to their shared vision of a universally interoperable and secure DeFi ecosystem.