IBC

The exact implementation of IBC and THORChain can be seen on docs.thorchains.org.

The Inter-Blockchain Communication (IBC) Protocol enables blockchains to communicate and exchange data regarding states or transactions. It is especially beneficial for application-specific blockchains within the Cosmos network, offering a standardized method for applications across different chains to interact. IBC provides a permissionless way to relay data packets between blockchains and depends on the security of the involved chains.

Migrating assets between two IBC-enabled chains (chain A and chain B) involves two steps. First, withdraw an asset from chain A to its home chain—for example, ATOM on Terra must be bridged to the Cosmos hub. Next, deposit the asset from the home chain into chain B.

Thus, IBC allows users to deposit any IBC-compatible asset from its home chain to Rujira or withdraw it from Rujira to its home chain through a simple interface.