The adoption of IBC Rate Limits is revolutionizing blockchain security, as the Inter-Blockchain Communication (IBC) protocol sets a new standard. Cosmos, a prominent blockchain ecosystem, recognizes the crucial role of these rate limits in safeguarding real economic activity and total value locked (TVL).
The importance of IBC Rate Limits is highlighted by Cosmos in a recent announcement, emphasizing their necessity as the blockchain industry continues to grow. A blog post shared by Cosmos further elaborates on the significance of bridge rate limits in protecting blockchains from major security exploits. Osmosis, a pioneering force, has introduced these limits, which are rapidly becoming an industry norm.
The blog post also sheds light on the contribution of Range Security, a blockchain security platform, in advancing cross-chain security. Range Security collaborates with leading teams like Osmosis and Stride to enhance the security of the interchain ecosystem. Their efforts involve the development of risk management tools such as the IBC dashboard and the preparation 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. In October 2022, the BSC bridge fell victim to an exploit worth over $100 million due to a flaw in the IAVL Merkle proof verification system. The subsequent discovery of the Dragonberry vulnerability further emphasized the necessity of improved security measures. In response, the Osmosis team introduced IBC Rate Limits.
IBC Rate Limits, currently in version 1, function by setting thresholds for the net flow of assets within a specific time period. If the limit is exceeded, transfers are halted until the next period begins. This mechanism effectively restricts the movement of funds in and out of a blockchain within a short timeframe, minimizing the potential impact of security exploits.
The existing version of IBC Rate Limits, v1, has already proven its effectiveness in protecting economic value on blockchains like Osmosis. Looking ahead, Range Security, in collaboration with Osmosis, is planning to launch IBC Rate Limits v2, aiming to further enhance cross-chain security.
