Cosmos launches Eureka to connect Ethereum and IBC networks

Cosmos, a blockchain network aiming to become the “internet of blockchains,” has launched Eureka, an interoperability layer designed to link its inter-blockchain communication (IBC) protocol with Ethereum.

According to an April 10 announcement, Eureka has expanded the Cosmos IBC protocol, changing IBC from an ecosystem standard “to a universal interoperability protocol,” setting the hub on a course to become the home of multichain apps.

With the introduction of Eureka, many Cosmos-based applications and blockchains are now accessible to more users by expanding IBC to the Ethereum network. With the new protocol, developers can reportedly build multichain apps across multiple ecosystems without fragmenting the user base.

Related: Cosmos co-founder proposes peer-to-peer clearing system in white paper

The announcement said that most projects rely on bridges for interoperability, resulting in the introduction of intermediaries as well as user and liquidity fragmentation. With bridges, users can simply move assets between blockchains, while with Eureka, developers promise to deliver native interoperability.

Cointelegraph reached out to the Interchain Foundation, the organization behind Cosmos, but did not receive a response by publication.

How IBC Eureka works

Eureka relies on a distribution zone allowing developers to access all IBC connections, users, liquidity and services without additional infrastructure. The Cosmos Hub also allows users to access apps, services and assets across the included ecosystems.

Related: Cosmos ecosystem rocked by North Korean developer allegations

Some early use cases include Bitcoin staking protocol Babylon, whose users will now be able to transfer Bitcoin liquid staking tokens from Ethereum to Babylon’s Cosmos-based chain. Similarly, decentralized finance (DeFi) protocol Elys will enable trading with Wrapped Ether (WETH), Wrapped Bitcoin (WBTC) and USDt (USDT) from Ethereum.

More integrations coming

In the future, developers promise that users will be able to leverage Eureka-powered multichain features in major decentralized exchange (DEX) dYdX. Real-world asset tokenization platform Mantra will also reportedly bridge capital from Ethereum into Cosmos-based real-estate markets, staking infrastructure and permissioned DeFi applications.

According to the announcement, IBC — which Eureka upgrades — has facilitated an average of up to $3 billion in transaction volume among more than 115 blockchains every month since its launch. Still, the integration was far from seamless for blockchains that were not part of the Cosmos ecosystem.

Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder