IBC
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Inter Blockchain Communication (IBC) is a protocol that’s part of the Cosmos technology stack, allowing seamless communication between blockchains. It’s designed to overcome one of the core challenges of legacy public blockchains, which is that they were built to operate as silos, with no opportunity to transfer data or tokens between platforms/chains.
IBC enables BitSong to interoperate with any other IBC-enabled blockchain in the Cosmos ecosystem. Furthermore, with innovations such as the Evmos or Axelar, IBC is also being used to power bridges to non-Cosmos blockchain ecosystems like Ethereum.
What does this mean in practice? IBC allowed us to list $BTSG on any Cosmos DEX such as Osmosis or others that will be deployed in the future. It will also allow anyone holding NFTs, Fan Tokens, or BTSG, the possibility to use them in applications on other compatible blockchains. For instance, as the Cosmos DeFi ecosystem develops, someone could use the value stored in their BitSong-issued NFTs as collateral to take out a loan.
Therefore, both BTSG and FanTokens or NFTs have their doors open to other ecosystems and can be moved at the discretion of each operator, using the available tools. On the map of zones, one can see every interchain movement or transaction made on one or more channels, and the same channels open to other blockchains.
For example BitSong at the moment is communicating with 6 chains through 14 different relayers.
IBC is important for BitSong, FanTokens, and NFTs of Sinfonia for several reasons:
Increased liquidity and exposure: IBC allows for seamless interoperability between different blockchains, enabling assets like FanTokens and NFTs to be transferred and traded on multiple blockchains. This increases liquidity and exposure, making it easier for users to buy and sell these assets, and for creators to reach a wider audience.
Access to a wider range of services: IBC allows different blockchains to access and utilize services provided by other blockchains. For example, BitSong's integration with IBC could enable Sinfonia's FanTokens and NFTs to be used as collateral on other DeFi platforms, providing more financial opportunities for creators and investors.
Reduced fees and faster transactions: By leveraging IBC, transactions can be settled faster and with lower fees, which benefits both creators and users. This could make FanTokens and NFTs more accessible to a wider range of people, encouraging greater adoption of the technology.
Overall, IBC is an important protocol for BitSong, FanTokens, and NFTs of Sinfonia as it allows for greater interoperability, liquidity, and exposure of these assets, while also improving transaction speeds, reducing fees, and providing access to a wider range of services. This could help to further drive adoption of blockchain technology in the music industry and beyond.