The adoption of IBC Rate Limits by the Inter-Blockchain Communication (IBC) protocol is revolutionizing blockchain security. Cosmos, a prominent blockchain ecosystem, recognizes the vital role of these rate limits in safeguarding real economic activity and total value locked (TVL).
IBC Rate limits have become an essential standard for blockchains that secure real economic activity both within and beyond the interchain. Range Security, a blockchain security platform, is contributing to the advancement of cross-chain security. Collaborating with key teams like Osmosis and Stride, Range Security is developing risk management tools, including the IBC dashboard, and preparing for the release of IBC Rate Limits v2.
The urgent need for these robust security measures became apparent following the Dragonberry vulnerability. In October 2022, the BSC bridge suffered an exploit of over $100 million due to a flaw in the IAVL Merkle proof verification system. The subsequent discovery of the Dragonberry vulnerability highlighted the necessity for improved security measures. In response, the Osmosis team introduced IBC Rate Limits.
IBC Rate Limits, currently in its v1 version, operate by setting thresholds for the flow of assets within a specific timeframe. If the quota is exceeded, no further transfers are permitted until the next period begins. This mechanism effectively restricts the movement of funds in and out of a blockchain within a short time, reducing the potential impact of security exploits.
The effectiveness of IBC Rate Limits v1 has already been demonstrated in protecting economic value on blockchains like Osmosis. Looking ahead, Range Security, in collaboration with Osmosis, aims to launch IBC Rate Limits v2, which will further enhance cross-chain security.