On October 21, the Inter-Blockchain Communication (IBC) protocol went reside on Terra (LUNA) mainnet.
Tendermint’s protocol permits sovereign chains to speak with one another whereas permitting the switch of tokens between Cosmos (ATOM) and different IBC-compatible blockchains.
By additional growing the community’s interoperability capability, IBC is anticipated to considerably enhance Terra’s use case, unleashing UST and LUNA within the Cosmos ecosystem.
Inter-chain highways
“Proposal 128 to provoke IBC on Terra has handed, which means that IBC is now reside on the Terra mainnet,” learn the announcement on Twitter.
1/ Proposal 128 to provoke IBC on Terra has handed, which means that IBC is now reside on the Terra mainnet https://t.co/4aIjkdDBBH
Keep tuned for as soon as the relayer channels are arrange, and customers can start transferring tokens between Terra and the Cosmos ecosystem from Station.
— Terra (UST) Powered by LUNA (@terra_money) October 21, 2021
“Asset transfers, information availability proofs, and extra can all be seamlessly ported between Terra and IBC-enabled chains within the Cosmos ecosystem,” Terra builders added.
“For Terra, IBC paves the inter-chain highways of DeFi with $UST as its main stablecoin, asset quote forex, and alternate medium,” they continued in a thread, reminding how Cosmos, as a decentralized community of impartial parallel blockchains, is a fertile new frontier for Terra’s native stablecoin, UST.
In keeping with Cosmos Cap, which retains tabs on Cosmos market capitalization, LUNA is the second crypto within the ecosystem.
With its present $16,8 billion market cap, Terra’s native crypto is one step behind Binance Coin (BNB).
Climbing the decentralized stablecoin ladder
This milestone adopted a latest profitable launch of Wormhole V2 assist for Terra, which permits UST and LUNA to be seamlessly ported to Ethereum, Solana, and Binance Sensible Chain, utilizing a single unified interface.
Each launches are anticipated to considerably scale back friction for Terra’s native cryptos transferring from one blockchain to a different.
In keeping with Do Kwon, co-founder and CEO of Terraform Labs, the South Korean firm behind the blockchain mission Terra, who expects the demand for UST in cross-chain environments to speed up, the protocol’s native stablecoin may doubtlessly attain the $10 billion market cap mark by this 12 months’s finish.
Kwon argued that the present regulatory scrutiny surrounding centralized stablecoins continues boosting the demand for decentralized stablecoins, which depend on blockchain-based collateral for stability.
At $2,74 billion, Terra’s UST is at present the second-largest decentralized stablecoin by market cap, following DAI.
Whereas Kwon’s $10 billion market cap prediction for UST this 12 months would possibly sound too bullish, overtaking DAI, with a present market cap at $6,47 billion, seems inside attain.
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