DeFi is Becoming Increasingly Cross-Chain, cosmos
With the explosion of DeFi from its initial experiments to the burgeoning sector it is today, never before has the need for interoperability been so clearly underscored.
Yet all this innovation to offer cheaper, faster, improved usability comes with significant tradeoffs in terms of decentralization and security. An equitable financial system cannot be held together with duct tape, VC capital, or conglomerates controlling a handful of nodes. Entire blockchains can control accounts on separate chains. So, rather than users simply transferring tokens and following them across different chains, Interchain Accounts provide access to all IBC-enabled Cosmos chains straight from one Cosmos Hub account.
Every single piece of Lego can be optimized, allowing for ultra-fast iteration, innovation, and communication between protocols. Better still, unlike in Ethereum or similar ecosystems where applications have to relinquish their sovereignty and are subject to the constraints and governance of the layer 1 they are built on, using IBC as the protocol, blockchains remain entirely sovereign, while achieving interoperability. In other words, the composability that Interchain Accounts introduce doesn’t take away the benefits of application-specific blockchains.
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