At the recent Osmoscon 2023 event, the Wormhole Foundation unveiled their latest innovation: the Wormhole Gateway — an appchain designed to revolutionize the Cosmos landscape. This marks the first appchain to seamlessly connect users and liquidity from over 23+ blockchains directly to any Cosmos appchain.
Given the strides the Wormhole has already made, the Gateway not only stands as a technological achievement but also as a beacon for what the future holds for interconnected blockchain systems. To get acquainted with its foundation, our previous article, “An Essential Guide to Wormhole Gateway and the Portal Token Bridge,” is a great starting point.
Constructed as an application-specific blockchain (or appchain) built on the sturdy foundation of the Cosmos SDK, the Gateway aims to enhance the liquidity landscape of the Cosmos interchain.
What is Gateway
Gateway is more than just a bridge. It’s an optimized blockchain built for one specific application, promoting increased accessibility to the Cosmos interchain, driving liquidity, and bolstering security across the entire Wormhole network.
Unlike traditional dApps that run on platforms like Ethereum, appchains like Gateway are stand-alone blockchains crafted for a singular purpose. This ensures better performance and allows for ongoing improvements tailored to user needs.
Wormhole’s integration into the Cosmos sphere began with its collaboration with Injective in 2022. Now, with Gateway, the impact is more profound, reshaping the entire appchain network. With over $378 million locked across its bridges, Wormhole’s influence in the space is hard to overlook.
What is Wormhole
Widely recognized as an industry-standard cross-chain messaging protocol, Wormhole serves as a bridge for applications in the bustling Web3 space. With over 20 leading blockchain networks under its belt, Wormhole is pivotal for DeFi, NFTs, governance, and numerous other use cases.
The platform’s trustworthiness is echoed by its adoption by giants like Circle and Uniswap. So far, it has successfully facilitated the transfer of a staggering $35 billion through innumerable cross-chain messages.
Understanding the Wormhole Gateway
The Wormhole Gateway is designed to make blockchain transactions easier and more affordable. Its main goal is to make it simpler for users to move their funds between different blockchains. With the Gateway, users can easily access over 23 blockchains without worrying about extra costs. Think of it as a central hub that connects different blockchains, saving you time and money.
How Does Wormhole Gateway Work?
When a user bridges a token from one of Wormhole’s extensive list of connected blockchains to a Cosmos SDK chain using the Gateway, the original asset gets locked. In its place, a new ICS-20 token is minted on the Gateway and dispatched to the destination chain via IBC. To put this in perspective:
1. Token Bridging with Gateway
If you’re moving a token from one of Wormhole’s 23+ connected blockchains to a Cosmos SDK chain, here’s what happens:
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Your token gets locked.
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A new ICS-20 token is created on Gateway.
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This new token is sent to its intended destination through IBC.
For a real-world application: Solana’s $SOL can be transferred to Osmosis, where it might be added to liquidity pools or used as collateral.
2. Making ICS-20 Assets Interchangeable
Once your token is on its new chain, it’s made easily swappable using Strangelove’s packet forward mechanism. Gateway also integrates with IBC Hooks, allowing it to work seamlessly with Cosmwasm contracts.
3. The Technical Side of Gateway
Smart Contracts
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Wormhole Core Bridge: This manages the core functions of Wormhole, like keeping track of guardians, validating messages, and handling CW20 tokens.
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Wormhole Token Bridge: Central for Wormhole’s operations, it’s responsible for message processes and token handling.
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IBC Translator: This translates messages between the Wormhole Token Bridge and ICS-20.
IBC Middlewares:
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Strangelove’s Packet Forward: Used for transfers within the Cosmos network.
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Osmosis’ IBC Hooks: Helps in moving assets from Cosmos to external chains.
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IBC Composability Middleware: A new tool from Wormhole that simplifies the developer experience. It provides a unified memo structure, deciding whether to use the packet forward or IBC Hooks based on the token’s destination.
In short, Gateway streamlines the token transfer process, making it efficient and user-friendly for participants in the Cosmos ecosystem.
Why Did Gateway Use the Interchain Stack?
Gateway picked the Cosmos SDK to better tap into Wormhole’s key strengths: clarity, independence, efficient liquidity management, and smooth transfer of assets across blockchains.
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Boost Clarity
Think of Gateway as an added security layer for Wormhole’s messages, making things more trustworthy. Using the Cosmos SDK ensures everyone can see how the system works, without compromising its standalone decision-making process.
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Upgrade Security
Transporting messages with IBC means Gateway can benefit from a well-tried system, cutting down unnecessary tech steps. It’s simpler: instead of connecting to every single Cosmos SDK chain out there, just connect to Gateway. And, by using the Cosmos SDK, Wormhole can add cool security features. One of these, called the Global Accountant, ensures that token values remain consistent and safe. It’s like a vigilant accountant, always ensuring tokens are where they’re supposed to be, avoiding potential pitfalls.
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Smoothen Asset Movements Across Chains
Wormhole’s goal is to make value flow easily between different blockchains. Gateway, built with this same idea, acts as a super-efficient gateway (pun intended) to the Cosmos SDK chains. So, both Wormhole and the larger blockchain network benefit, as it becomes simpler to move assets and use applications across different blockchain environments.
A New Era for Cosmos Developers
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Access the Entire Crypto Space with One IBC Connection
Wormhole Gateway, built on the Cosmos SDK, acts as your key to easy asset exchanges and messaging across blockchain ecosystems. Just integrate with IBC and unlock this potential.
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Tailor-Made for Seamless Interactions
Gateway is designed with a clear goal: make interactions between the Wormhole Stack and all other IBC-ready Cosmos SDK chains smooth. It taps into the capabilities of both Cosmos SDK and CosmWasm for this.
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Zero Extra Costs for Bridging
Gateway focuses on enhancing the liquidity of the interchain. It doesn’t burden users with extra charges when they move their assets.
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Streamlined Asset Exchange
Using the ICS-20 standard, Gateway assures a seamless exchange of tokens via IBC. This not only ensures that assets remain consistent but also aligns with interchain protocols, offering users an improved experience.
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Unmatched Liquidity Across Multiple Chains
Gateway, together with the broader Wormhole ecosystem, offers unparalleled access to liquidity. It connects to Ethereum, Solana, and 20+ other chains, making assets like stETH and tBTC readily available within the interchain.
How to get started with Wormhole Gateway
For those eager to adopt, the Wormhole Gateway will be intertwined with multiple major Cosmos SDK chains right out of the gate. Expansion plans to interlink with the broader interchain are also on the horizon. Developers and dApp builders are encouraged to reach out to the Wormhole Foundation or explore their documentation to learn about integration possibilities.
The Takeaway
The Wormhole Gateway isn’t just a technological leap; it’s a transformative bridge linking diverse blockchain ecosystems under one Cosmos umbrella. For Cosmos and the broader blockchain community, this is more than just a product launch. It’s the dawn of a new era where fluidity, security, and seamless integration are not just aspirations but the new norm. As we reflect on the revelations from Osmoscon 2023, one thing is clear: with the Wormhole Gateway, Cosmos isn’t just expanding its horizons; it’s reshaping the very fabric of the blockchain universe.
