Review of Major Progress of IBC Protocol in 2022 and Outlook for Goals in 2023
Entering 2023, IBC will continue to play a key role in the development of blockchain interoperability.Written by: Adi Ravi Raj, ICF Interchain Foundation
Compiled by: Cosmos Chinese Technical Community
2022 was a fruitful year for the IBC cross-chain communication protocol. (Learn about the IBC cross-chain communication protocol: https://ibcprotocol.org/)
In terms of new chain integrations, features, and improvements, IBC undoubtedly solidified its position as the gold standard for blockchain interoperability in 2022.
On the other hand, the cross-chain ecosystem continues to thrive. The developments over the past year have reinforced the vision of establishing a global blockchain internet.
This article aims to review and summarize the major developments and updates of the IBC protocol in 2022. Topics include:
Major version releases
New features and protocol improvements
On-chain and GitHub repository-related metrics
Important progress in the ecosystem
Updates from the Interchain GmbH team
Outlook on key events in 2023
Version Releases
This year, ibc-go released a total of 4 major versions, each introducing new features or improvements to the existing stack, which will be summarized in the next section.
New Features and Improvements
Fee Middleware
In the implementation of the cross-chain standard ICS-29 (Fee Middleware Standard), a set of on-chain mechanisms to support relayers was introduced. The purpose of this feature is to incentivize relayers, thereby achieving sustainable scalability for IBC.
ICS-29 Fee Middleware Standard:
https://github.com/cosmos/ibc/tree/main/spec/app/ics-029-fee-payment
The fee middleware is included in ibc-go v4.0.0. You can read “Shifting Relayer Incentives On-Chain: Fee Middleware, Fee Payment, and Budget Modules”* for more information about this feature.*
Interchain Accounts
In March, ibc-go v3.0.0 was released, which included Interchain Accounts (ICA). So far, we have seen Stride and Quicksilver go live and enable the controller chain functionality. The controller chain can open and control accounts on the host chain.
ibc-go v3.0.0:
https://github.com/cosmos/ibc-go/releases/tag/v3.0.0
One of the major new features in ibc-go v5.0.0 is the InterchainAccountgRPC query endpoint for the controller chain submodule, allowing users to retrieve their registered ICA addresses.
ibc-go v5.0.0:
https://github.com/cosmos/ibc-go/releases/tag/v5.0.0
In addition to many other improvements, ibc-go v6.0.0 also added a MsgServer to the ICA controller submodule, aimed at enhancing the convenience of ICA implementation and adoption.
ibc-go v6.0.0:
https://github.com/cosmos/ibc-go/releases/tag/v6.0.0
“ibc-go v6: Changes and Impacts of Interchain Account ICA Functionality”
Client Refactoring
Light clients are one of the key components of IBC. One of the main barriers to widespread adoption of IBC is the need to develop different light clients to track different consensus algorithms.
The client refactoring aims to simplify the development of light clients, thereby alleviating this burden. The refactored version will be released in 2023 with ibc-go v7.0.0, which will also upgrade the SDK version to v0.47.
“ibc-go v7.0.0 Client Refactoring: Laying the Foundation for IBC Cross-Ecosystem Expansion”
Client refactoring beta1:
https://github.com/cosmos/ibc-go/tree/02-client-refactor-beta1
On-Chain Metrics
Number of Active Chains
Figure 1 shows the number of active IBC chains. This number has been steadily increasing quarter by quarter. Currently, there are 53 active chains in the cross-chain ecosystem.
Total IBC Transaction Volume
In 2022, the total cross-chain transaction volume of IBC reached $30.3 billion.
Figure 2 shows the total value of IBC transactions flowing in and out. Although the transaction volume has been declining for most of the year, we can see that the total value of cross-chain transactions seems to have gradually recovered since November.
Interchain Accounts
Since their launch at the beginning of this year, Interchain Accounts have been enabled on the Stride and Quicksilver mainnets.
GitHub Repository Metrics
A strong community of external contributors and an outstanding Cosmos development team have repeatedly delivered high-quality software.
The following figure summarizes some important GitHub metrics for the ibc-go and ibc (specification) repositories in 2022.
Figure 3 shows the total number of commits submitted to ibc-go in 2022.
We extend our utmost praise and gratitude to the outstanding work done by external contributors and their role in fostering collaboration and innovation during the ibc-go development process.
Other Ecosystem Developments
Interchain NFTs [Bianjie Smart]
The Interchain NFTs functionality is based on the NFT module and the Interchain NFT standard ICS-721, led by Bianjie Smart (a long-term core technology contributor to Cosmos and IRISnet), and supported by the ICF Interchain Foundation. This feature will introduce IBC-based cross-chain NFT interoperability to Cosmos and expand IBC capabilities. For details, see “The Upcoming IBC Cross-Chain NFT Technology in Cosmos”.
Bianjie Smart official website:
https://www.bianjie.ai/
NFT module:
https://github.com/cosmos/cosmos-sdk/blob/main/docs/architecture/adr-043-nft-module.md
Interchain NFT standard ICS-721:
https://github.com/cosmos/ibc/tree/main/spec/app/ics-721-nft-transfer
Additionally, the Game of NFTs, initiated by Bianjie Smart in collaboration with Cosmos ecosystem teams such as IRISnet, Stargaze, and Gravity Bridge, is set to kick off in the first quarter of 2023! The Game of NFTs is another highly anticipated large-scale developer event following the Game of Zones, Game of Stakes, and Game of Chains, consisting of a public incentivized testnet and a hackathon, aimed at thoroughly testing cross-chain NFT functionality and guiding Cosmos developers to explore more innovative use cases around this feature.
Extending IBC to Polkadot [Composable Finance]
By developing the BEEFY light client and the XCVM new cross-chain smart contract platform, Composable Finance, with the help of Strangelove Ventures, is building infrastructure to connect the Cosmos and Polkadot ecosystems. Their launch plans for next year will also leverage Wasm and GRANDPA clients.
BEEFY light client:
https://github.com/ComposableFi/centauri/tree/master/light-clients/ics11-beefy/
XCVM:
https://medium.com/composable-finance/xcvm-architectural-overview-8425fc2e5d47
Composable Finance:
https://www.composable.finance/
Strangelove Ventures:
https://strange.love/
GRANDPA:
https://github.com/cosmos/ibc/blob/main/spec/client/ics-010-grandpa-client/README.md
The Composable team is also committed to using IBC to achieve interconnectivity between Substrate chains and the Near ecosystem.
Related link:
https://medium.com/composable-finance/bringing-ibc-to-near-our-near-polkadot-bridge-a8954d7ed886
ZK-IBC [Polymer]
Polymer is set to become one of the first consumer chains of Interchain Security. Polymer aims to connect IBC chains with non-IBC chains using zero-knowledge proofs.
Polymer:
https://www.polymerlabs.org/
Applying IBC on Non-Cosmos-SDK Chains [Penumbra]
This year, the first Cosmos SDK chain, Penumbra, went live. Penumbra connected to the Cosmos Hub using IBC in its testnet. This is an important milestone indicating that implementing IBC is not limited to Cosmos SDK chains.
Penumbra:
https://penumbra.zone/
Penumbra connects to the Cosmos Hub via IBC:
https://www.mintscan.io/cosmos/txs/BA254A764A202BB1188E97F44DF03C5532307793B6DAF39E69C2DB800E13880A
Bringing IBC to Ethereum and Near Ecosystems [Electron Labs]
By utilizing zk-snarks, Electron Labs is dedicated to connecting Ethereum and the Cosmos ecosystem through IBC, ultimately connecting to other EVM chains.
Electron Labs:
https://electronlabs.org/
Details link:
https://www.notion.so/Bringing-IBC-to-Ethereum-using-ZK-Snarks-zk-IBC-899d9ef103e8428c92f907621b027175
Using IBC for Transfer Security [Babylon]
By leveraging IBC as a tool for transfer security, Babylon aims to provide the security of the Bitcoin network to Cosmos chains. Babylon uses a checkpointing method to aggregate transactions on Cosmos chains into the Bitcoin network via the IBC transport layer and timestamps them.
For more on how Babylon works, see the blog:
https://babylonchain.io/blogs
Cross-Chain Queries
The ICS-31 cross-chain query functionality, developed by Informal Systems and the Interchain GmbH team, is a protocol that allows a "querying" chain to request data from a "queried" chain via IBC. Both Stride and Quicksilver are currently using the cross-chain query module in production.
ICS-31 cross-chain query functionality:
https://github.com/cosmos/ibc/tree/main/spec/app/ics-031-crosschain-queries
Interchain GmbH's IBC Team
As one of the three core teams supported by the ICF Interchain Foundation to develop IBC (the other two teams being Informal Systems and Strangelove Ventures), the Interchain GmbH team serves as the manager and maintainer of the IBC protocol specification and the ibc-go repository.
IBC protocol specification:
https://github.com/cosmos/ibc
ibc-go repository:
https://github.com/cosmos/ibc-go
The vision of Interchain GmbH is to realize a future where IBC acts as the connective organization between all blockchains, creating a blockchain internet where blockchains can securely interact and exchange information.
At the beginning of 2022, the Interchain GmbH team had only 6 members. Today, the team has expanded to 9 members, working across development and product verticals.
Outlook for 2023
The goals for 2023 can be broadly categorized into three main themes: 1) Upgradability; 2) Application Composability; and 3) Ecosystem Expansion.
Upgradability
Aims to achieve future-proofing for IBC and the ability to upgrade the core protocol without sacrificing network effects or accumulated state.
This will include work around channel upgradability, aimed at fully utilizing fee middleware, upgrading IBC smart contracts, enhancing ICS-20, changing channel order, and other new features. The upgradability theme also involves work around IBC connection and client upgradability.
Channel upgradability:
https://medium.com/the-interchain-foundation/how-channel-upgradability-will-level-up-the-interchain-18077ae1d6cc
Fee middleware:
https://github.com/cosmos/ibc/tree/main/spec/app/ics-029-fee-payment
Application Composability
Aims to extend the functionality of IBC and make it easier for developers to create custom IBC applications in Golang or CosmWasm.
Key deliverables under this theme include path unwinding (ICS-20 v2), PubSub queries, support for new application workflows, and enhancing the composability of smart contracts with IBC.
Path unwinding:
https://github.com/cosmos/ibc/discussions/824
PubSub queries:
https://github.com/cosmos/cosmos-sdk/issues/13095
Ecosystem Expansion
Includes support teams implementing IBC for other ecosystems or light clients (ZK-IBC, NEAR, Substrate), releasing localhost connections, and ensuring the security and compatibility of IBC with dependent projects.
Conclusion
In 2022, the cross-chain ecosystem thrived against the odds, and IBC has been at the forefront of growth and innovation across the ecosystem.
As we enter 2023, IBC will continue to play a key role in the development of blockchain interoperability. Whether launching new use cases and applications or driving innovation across different networks, the future of cross-chain has never looked brighter.
IBC represents a fundamental paradigm shift in interoperability, allowing for the transfer of arbitrary data across chains in a trust-minimized, secure, and scalable manner.
