Bridging Cross-Chain Interactions

Azura Chain integrates the Inter-Blockchain Communication (IBC) protocol, which is essential for facilitating seamless interactions and data transfers between independent blockchains within the Cosmos Network. This integration enhances Azura's capability to support cross-chain interactions, thus promoting a more interconnected blockchain ecosystem. In this section, Azura will introduce the IBC protocol and Hub-and-Zone model.

IBC: Enabling Cross-Chain Communication in Cosmos

IBC is a standard module of the Cosmos SDK that enables cross-chain communication within the Cosmos Network. It serves as the primary protocol for facilitating seamless interaction and data transfer between independent blockchains, enhancing interoperability and scalability across various networks.

IBC utilizes a handshake protocol to establish connections between blockchains. This process involves a series of transactions on both chains to verify each other's information. The key steps in this process are:

• Connection Establishment: The two blockchains authenticate each other to initiate a secure connection.
• Channel Creation: Once connected, the blockchains establish channels through another handshake procedure. Notably, a single connection can support multiple channels, each dedicated to different types of data or applications.
• Data Exchange: After the setup is complete, chains can exchange various types of data packets. These may include token transfers, smart contract instructions, and cross-chain queries or commands.
• Packet Integrity: Each transmitted packet contains metadata that allows the receiving blockchain to verify its source and maintain data integrity throughout the communication process.

The security of IBC relies on validators from connected chains verifying each other's state, rather than using external validators. For this mechanism, the Cosmos Network a Hub-and-Zone architecture to optimize network efficiency, allowing chains to connect through central hubs instead of directly linking to every other chain. This approach streamlines the network while maintaining widespread interoperability.

Hubs and Zones: Navigating the Cosmos Network

The Cosmos Network introduces two types of blockchains: Hub and Zone. In this model, Hubs serve as central connection points that facilitate interactions between multiple independent blockchains called Zones. By establishing an IBC connection with a Hub, a Zone can immediately interact with every other Zone connected to that Hub.

Hub-and-Zone architecture offers several benefits:

• Scalability: By distributing transactions across multiple Zones, the network can handle a higher overall throughput.
• Interoperability: Zones can easily interact with each other through the Hub, fostering a rich ecosystem of interconnected blockchains.
• Sovereignty: Each Zone retains control over its own rules and governance, allowing for specialized blockchains tailored to specific use cases.

Cosmos Network Architecture - Hubs & Zones

The initial blockchain of Cosmos Network is the Cosmos Hub. It uses the ATOM token and serves as the primary Hub within the ecosystem. Cosmos Hub connects various Zones that use the IBC protocol and facilitates token transfers between different Zones. It is responsible for maintaining a register of tokens in each Zone. Zones based on the Tendermint protocol comply with the IBC protocol.

Cosmos Ecosystem - Hubs & Zones

Implementing cross-chain interactions within the Cosmos SDK involves utilizing key modules (e.g., IBC and NFT modules). Azura can leverage these tools to create gaming applications that seamlessly operate across multiple chains. For example, a gaming platform built on Cosmos can facilitate trades of NFTs and tokens across different games and blockchains without requiring players to leave the application.

The potential applications of cross-chain interactions are vast and include:

• Gaming Platform: Platforms allow games and assets to seamlessly interact across multiple zones, enhancing user experience and expanding the gaming ecosystem.
• Cross-Chain Transfer: Users can easily transfer tokens and NFTs between different zones, such as sending tokens from a DeFi application on one chain to a gaming application on another.
• Data Sharing: Blockchains can share data and functionalities, enabling new possibilities for cross-chain applications like game state management.

Peg Zones: Bridging External Blockchains with Cosmos

A Peg Zone is a specialized zone in the Cosmos ecosystem that enables communication between external probabilistic chains like Bitcoin and Ethereum. While Cosmos typically uses the IBC protocol for interoperability, it only works when both chains can achieve settlement finality. To solve this problem, Cosmos uses Peg Zones to connect with probabilistic chains. A Peg Zone is a blockchain that monitors the state of a probabilistic blockchain and establishes finality, allowing the probabilistic chain to connect with IBC. Through this mechanism, Azura Chain can also support interoperability with blockchains outside the Cosmos Network.

Peg Zones serve several key functions:

• Asset Deposit: Users can deposit assets from the original blockchain (e.g., Bitcoin) into a designated address on the Peg Zone. These assets are then securely locked or managed within the Peg Zone.
• Corresponding Asset Issuance: For each deposit, the Peg Zone mints equivalent assets on the Cosmos network. For example, when Bitcoin is deposited, the Peg Zone issues "Peg BTC" tokens.
• Cross-Chain Transfer: These newly minted assets can be freely transferred within the Cosmos network. Users can utilize them in various DeFi activities or other blockchain applications across the Cosmos ecosystem.
• Withdrawal Operation: When users wish to retrieve their original assets, they return the corresponding Cosmos-based tokens to the Peg Zone. The Peg Zone then releases the original assets back to the user on the original blockchain