Inter-Blockchain Communication Is Now Live On Terra: Report

The Cosmos Inter-Blockchain Communication protocol is now live on Terra which will open the protocol to many dapps while enabling UST and LUNA to move between the chains effortlessly so let’s read more in our latest crypto news.

The Inter-Blockchain communications protocol went live on Terra’s mainnet and its Tendermint protocol enables sovereign chains to communicate with each other while allowing the transfer of tokens between ATOM and other IBC compatible blockchains. By increasing the network capacity, IBC will further boost Terra’s use case and will unleash LUNA and UST in the Cosmos ecosystem. The announcement read:

“Proposal 128 to initiate IBC on Terra has passed, meaning that IBC is now live on the Terra mainnet.”

Asset transfers, data availability proofs, and much more can be seamlessly ported between Terra and IBC-enabled Chains in the Cosmos ecosystem. The developers added:

“For Terra, IBC paves the inter-chain highways of DeFi with $UST as its leading stablecoin, asset quote currency, and exchange medium.”

The developers continued to remind us how cosmos is a decentralized network of independent parallel blockchain as it is a fertile new frontier for the stablecoin UST. According to the Cosmos Cap keeps the tabs on Cosmos market cap with LUNA being the second crypto in the ecosystem with its current $16,8 billion market cap, being one step behind Binance Coin. The milestone followed a recent successful launch of Wormhole v2 support for Terra that enables LUNA and UST by being ported to Ethereum, Solana, Binance Smart Chain that use a single unified interface.

Both launches were expected to reduce the friction for Terra’s native crypto by moving from one blockchain to another. According to Do Kwon, the co-founder and CEO of TerraForm Labs, the South Korean company behind the Terra blockchain project, expects the demand for the UST coin to increase with the protocol’s native stable in even reaching a $10 billion market cap by the year’s end. Kwon argued that the current regulatory scrutiny around the centralized stable coins continues to boost the demand for decentralized stablecoins that rely on blockchain-based collateral for stability.

1/ Proposal 128 to initiate IBC on Terra has passed, meaning that IBC is now live on the Terra mainnet 🙂https://t.co/4aIjkdDBBH

Stay tuned for once the relayer channels are set up, and users can begin transferring tokens between Terra and the Cosmos ecosystem from Station.

— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) October 21, 2021

Terra’s UST is now the second biggest decentralized stablecoin by market cap following the DAI. While Kwon’s $10 billion market cap prediction for UST this year sounds a little too bullish, overtaking DAI with a market cap of $6.47 billion seems in reach.