Bridgeless Transactions (IBC)

Cross-chain communication and interoperability using IBC v2 and IBC Classic for seamless blockchain integration, token transfers, and interchain account management

Bridgeless Transactions with IBC

Scope

This document covers Sonr's implementation of the Inter-Blockchain Communication (IBC) Protocol for cross-chain interoperability. It includes IBC Classic and IBC v2 support, token transfers, interchain accounts, and Vault integration. This document does not cover low-level protocol implementation details—see the IBC module reference for technical specifications.

Audience

Developers building cross-chain applications. System architects designing interoperable systems. Validators operating IBC infrastructure. Prerequisites: Understanding of blockchain fundamentals, basic knowledge of cross-chain concepts, and familiarity with Cosmos SDK.

Summary

Sonr implements the Inter-Blockchain Communication (IBC) Protocol for secure cross-chain operations. The system supports both IBC Classic (current standard) and IBC v2 (launching March 2025). Vaults abstract IBC complexity, enabling simple APIs for token transfers, interchain accounts, and cross-chain DeFi. All operations use light client verification for trust-minimized security.

IBC Architecture

Protocol Overview

IBC enables secure communication between independent blockchains:

  1. Light Client Verification: Cryptographic proofs verify remote chain states
  2. Packet Routing: Ordered message delivery between chains
  3. Application Layer: Standardized protocols for transfers and accounts
  4. Relayer Network: Decentralized infrastructure for packet delivery

Sonr Implementation

Sonr integrates IBC at multiple levels:

User Interface

Vault Abstraction

IBC Router

┌─────────────┬────────────────┬──────────────┐
│  Transfer   │   Interchain   │   Custom     │
│   Module    │   Accounts     │   Apps       │
└─────────────┴────────────────┴──────────────┘

Light Client Verification

Connected Blockchains

Token Transfers

ICS-20 Implementation

Sonr implements the ICS-20 standard for fungible token transfers:

// Simple cross-chain transfer via Vault
const transfer = await vault.transfer({
  amount: "100",
  denom: "USDC",
  destination: {
    chain: "osmosis-1",
    address: "osmo1abc...",
  },
  timeout: "10m",
});

The Vault handles:

  • Route selection (direct or multi-hop)
  • Fee calculation and optimization
  • Timeout management
  • Error handling and retries

Denomination Management

IBC creates unique denominations for transferred tokens:

// Query token information
const tokenInfo = await vault.getTokenInfo("ibc/27394FB...");

// Returns:
{
  "originalDenom": "uatom",
  "displayName": "ATOM",
  "sourceChain": "cosmoshub-4",
  "path": "transfer/channel-0/uatom",
  "verified": true
}

Multi-Hop Routing

Vaults optimize transfers through intelligent routing:

// Calculate optimal route
const route = await vault.calculateRoute({
  from: "sonr-mainnet",
  to: "ethereum",
  token: "USDC",
  amount: "1000",
});

// Route selection based on:
// - Total fees
// - Transfer time
// - Liquidity availability
// - Success rates

Interchain Accounts

Account Registration

Create accounts on remote chains:

// Register interchain account
const icaAccount = await vault.createInterchainAccount({
  hostChain: "osmosis-1",
  purpose: "defi-operations",
});

Remote Execution

Execute transactions on other chains:

// Swap tokens on Osmosis
const swapTx = await vault.executeRemote({
  account: icaAccount,
  messages: [
    {
      typeUrl: "/osmosis.poolmanager.v1beta1.MsgSwapExactAmountIn",
      value: {
        sender: icaAccount.address,
        routes: [{ poolId: "1", tokenOutDenom: "uosmo" }],
        tokenIn: { denom: "ibc/USDC", amount: "1000000" },
        tokenOutMinAmount: "950000",
      },
    },
  ],
});

Cross-Chain Strategies

Automate complex DeFi operations:

// Create automated strategy
const strategy = await vault.createStrategy({
  name: "Liquidity Provision",
  chains: ["sonr-mainnet", "osmosis-1"],
  steps: [
    {
      action: "transfer",
      from: "sonr-mainnet",
      to: "osmosis-1",
      token: "USDC",
      amount: "5000",
    },
    {
      action: "provide-liquidity",
      chain: "osmosis-1",
      pool: "USDC/OSMO",
      amount: "5000",
    },
  ],
  automation: {
    rebalance: "weekly",
    compoundRewards: true,
  },
});

Security Model

Light Client Verification

All IBC operations use cryptographic verification:

// Verify remote chain state
func (k Keeper) VerifyMembership(
    ctx sdk.Context,
    clientID string,
    height exported.Height,
    proof []byte,
    path exported.Path,
    value []byte,
) error {
    clientState := k.clientKeeper.GetClientState(ctx, clientID)
    return clientState.VerifyMembership(
        ctx, k.cdc, clientStore, height, proof, path, value)
}

Authorization Framework

UCAN-based permissions for IBC operations:

// Request IBC capabilities
const capability = await vault.requestCapability({
  action: "ibc/transfer",
  constraints: {
    maxAmount: "10000",
    allowedChains: ["osmosis-1", "cosmoshub-4"],
    allowedTokens: ["USDC", "ATOM"],
    expiresAt: Date.now() + 30 * 24 * 60 * 60 * 1000,
  },
});

Timeout Handling

Prevent stuck transactions with intelligent timeouts:

// Configure timeout strategy
const transfer = await vault.transfer({
  amount: "100",
  denom: "USDC",
  destination: "ethereum",
  timeoutStrategy: {
    initial: "30m",
    retry: "automatic",
    maxRetries: 3,
  },
});

Relayer Infrastructure

Decentralized Network

Sonr operates a decentralized relayer network:

// Query relayer status
const relayerInfo = await vault.getRelayerStatus({
  route: "sonr -> osmosis"
});

// Returns:
{
  "availableRelayers": 5,
  "selectedRelayer": "sonr1abc...",
  "avgDelay": "15s",
  "estimatedTime": "15s"
}

Incentive Structure

Relayers earn rewards for maintaining connectivity:

type RelayerRewards struct {
    BaseReward    sdk.Coins  // Per packet reward
    VolumeBonus   sdk.Dec    // Volume-based bonus
    UptimeBonus   sdk.Dec    // Uptime bonus
    SpeedBonus    sdk.Dec    // Fast relay bonus
}

Integration Guide

Vault SDK

Simple APIs for IBC operations:

import { SonrVault } from "@sonr/vault-sdk";

// Initialize vault
const vault = await SonrVault.connect({
  network: "mainnet",
  did: "did:sonr:alice",
});

// Transfer tokens
await vault.ibc.transfer({
  token: "USDC",
  amount: "100",
  recipient: "osmo1abc...",
  chain: "osmosis-1",
});

// Create interchain account
const ica = await vault.ibc.createAccount("osmosis-1");

// Monitor transfers
vault.ibc.onTransfer((transfer) => {
  console.log(`Transfer ${transfer.id}: ${transfer.status}`);
});

Smart Contract Integration

Enable IBC in CosmWasm contracts:

use sonr_ibc::SonrIBC;

#[entry_point]
pub fn execute(
    deps: DepsMut,
    env: Env,
    info: MessageInfo,
    msg: ExecuteMsg,
) -> Result<Response, ContractError> {
    match msg {
        ExecuteMsg::CrossChainSwap {
            token_in,
            token_out,
            target_chain
        } => {
            let ibc_msg = SonrIBC::cross_chain_swap(
                token_in,
                token_out,
                target_chain,
                env.contract.address
            )?;

            Ok(Response::new()
                .add_message(ibc_msg)
                .add_attribute("action", "cross_chain_swap"))
        }
    }
}

Fee Structure

Transparent Pricing

IBC operation fees:

OperationFeeNotes
IBC Transfer0.01%Min: 0.001,Max:0.001, Max: 1.00
ICA Creation1 SNROne-time fee
ICA Transaction0.1%Of transaction value
Multi-hop+0.005%Per additional hop
Priority+0.02%Express processing

Fee Distribution

  • Relayers: 70%
  • Validators: 20%
  • Protocol: 10%

Monitoring

Analytics Dashboard

Track IBC activity:

// Get IBC analytics
const analytics = await vault.getIBCAnalytics({
  timeframe: '30d'
});

// Returns:
{
  "totalVolume": "$125.4M",
  "totalTransfers": 1542389,
  "averageTime": "12s",
  "successRate": "99.7%",
  "topRoutes": [
    { "route": "sonr -> osmosis", "volume": "$45.2M" }
  ]
}

Network Health

Monitor system status:

// Check network health
const health = await vault.getNetworkHealth();

// Returns:
{
  "connectedChains": 47,
  "activeChannels": 234,
  "relayerUptime": "99.2%",
  "congestionLevel": "low"
}

IBC v2 Support

Enhanced Features

IBC v2 (launching March 2025) adds:

  1. Simplified Architecture: No complex handshakes
  2. Multi-VM Support: Ethereum and Solana integration
  3. ZK Verification: Lower costs with zero-knowledge proofs
  4. Flexible Clients: Support for various verification methods

Migration Path

Sonr supports both versions:

// IBC Classic (current)
import (
    ibctransfer "github.com/cosmos/ibc-go/v8/modules/apps/transfer"
    ica "github.com/cosmos/ibc-go/v8/modules/apps/27-interchain-accounts"
)

// IBC v2 (upcoming)
import (
    ibcv2 "github.com/cosmos/ibc-go/v9/modules/core/v2"
)

Best Practices

For Developers

  1. Use Vault abstractions: Avoid direct IBC complexity
  2. Handle timeouts: Implement proper timeout strategies
  3. Monitor transfers: Track transaction status
  4. Optimize routes: Consider fees and time

For Validators

  1. Run relayers: Support network connectivity
  2. Monitor channels: Ensure healthy connections
  3. Update clients: Keep light clients current
  4. Maintain uptime: Ensure reliable service

Next Steps

Ready to Build?

Developers: Explore the Vault SDK documentation for IBC integration.

Validators: Read the Relayer Setup Guide to support IBC.

Users: Learn about Cross-Chain Features in your Vault.

Discover how IBC integrates with other Sonr components by exploring DWN Module for Vault operations or Payment Systems for cross-chain payments.