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The Inter-Blockchain Communication (IBC) protocol is setting a new standard in blockchain security, thanks to the adoption of IBC Rate Limits. Cosmos, a leading blockchain ecosystem, has highlighted the importance of these rate limits in securing real economic activity and total value locked (TVL).
IBC Rate limits are becoming a must-have standard for blockchains that secure real economic activity, and TVLs adopted both in the #interchain and beyond!
— Cosmos – The Interchain ⚛️ (@cosmos) May 20, 2024
Read how @RangeSecurity is contributing to elevating cross-chain security to the next level ⬇️https://t.co/uPOnNLxvnC
Cosmos Emphasizes Urgent Need for IBC Rate Limits Adoption
In a recent tweet, made an announcement emphasizing the growing necessity of these security measures as the blockchain industry continues to expand and evolve. The significance of IBC Rate Limits is further detailed in a blog post shared by Cosmos. The post explains that bridge rate limits offer a simple yet highly effective solution to protect blockchains against significant security exploits. Pioneered by Osmosis, these limits are becoming an industry standard.
The blog outlines the role of Range Security, a blockchain security platform, in advancing cross-chain security. Range Security is collaborating with leading teams such as Osmosis and Stride to enhance the security of the interchain ecosystem. The company’s efforts include developing risk management tools like the IBC dashboard and preparing for the release of IBC Rate Limits v2.
The need for robust security measures became evident after the Dragonberry vulnerability, a critical event in the history of the interchain.
One notable incident occurred in October 2022, when the BSC bridge suffered an exploit of over $100 million due to a flaw in the IAVL Merkle proof verification system. The discovery of the Dragonberry vulnerability shortly thereafter underscored the need for improved security measures. In response, the Osmosis team introduced IBC Rate Limits.
IBC Rate Limits to Enhanced Protection with Upcoming V2
IBC Rate Limits function by setting thresholds for the net flow of assets within a specific time period. If the quota is exceeded, no further transfers are allowed until the next period begins. This mechanism effectively limits the amount of funds that can be moved in or out of a blockchain in a short time. This way, it reduces the potential impact of security exploits.
The current version, IBC Rate Limits v1, has already proven effective in protecting economic value on blockchains such as Osmosis. Looking ahead, Range Security, in collaboration with Osmosis, plans to launch IBC Rate Limits v2, which aims to further enhance cross-chain security.