2 years ago, the launch of Interchain Accounts enabled blockchains to manage accounts cross-chain for the first time.
Since then, 60+ chains have enabled ICA account host or controller functionality.
🧵 on use cases from
@stride_zone
@NolusProtocol
and
@TimewaveLabs
.
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Interchain Accounts (ICS-27) allows a controller chain to send and execute messages on an account on a host chain through IBC.
The developer chooses the method of account control. Examples are governance, a multi-sig, authz, or a smart contract.
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Unlike signing a transaction on the same chain using your private key, the Interchain Account Controller remotely signs and authenticates a transaction on the host chain.
Then, it sends packets through the dedicated channel the Interchain Account is registered on.
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The liquid staking protocol
@stride_zone
was first to use ICA.
Users deposit tokens like ATOM and OSMO on Stride to mint an LST.
Under the hood, Stride transfers the tokens to an ICA on the source chain, and sends msg.delegate to stake the tokens.
1/6 Interchain accounts (ICA) are like embassies in foreign countries!
They receive orders from the government and execute them in the countries where the outposts are located 🏦 🌎
How does ICA work and how do we use it at
@stride_zone
?
A thread 🧵👇
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This design lets users verify that their LSTs are backed by the underlying staked assets.
Further, it enables Stride’s liquid staking use case to easily scale to any IBC-enabled blockchain that have ICA host enabled.
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@NolusProtocol
offers DeFi Leases, efficient cross-chain loans with reduced collateral and liquidation risk.
When a user takes out a loan, they open an ICA on Osmosis or Neutron. Users pay back the loan with staking rewards or yield earned on the loan.
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These early ICA users informed improvements to the ibc-go protocol.
-- Ibc-go v6 removed the need to write a custom authentication module to use ICA.
-- Unordered channels were enabled for ICA in v8.1.0.
-- Module safe queries will be enabled in v8.3.0.
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These use cases are just the beginning.
Later in the year, it will be possible to perform atomic workflows with ICS-20 token transfers and ICA.
Additionally, projects are experimenting with the application composability ICA provides, such as Timewave Labs.
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@timewavelabs
enables decentralised entities such as DAOs, blockchains, dApps, or protocols to enter into agreements with each other. These agreements are referred to as covenants and are powered by ICA.
@ATOMAccelerator
is supporting our buildout of Covenant v2! Did we just skip Covenant v1? A thread on the Covenant system past, present, and future 🧵 👇
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Other prominent chains are joining the ICA network.
CIP-14 on
@CelestiaOrg
is showing promise that host functionality will be enabled in the next upgrade.
@cosmoshub
is planning to add controller functionality in v16.
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It's time to move beyond token transfers.
Start enabling real cross-chain composability by leveraging the power of ICA.
📜
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