Interchain accounts are used to allow users to authorize an application that runs on one blockchain to take an action. This requires that the blockchains set up an interchain account. It must be based on either Cosmos SDK or Tendermint. These protocols are used to launch and replicate blockchain applications.
This feature is an innovation from Cosmos and is one step ahead of IBC.
“In a traditional framework, the end-user would log into an interface representing chain A and pass an asset to chain B via an IBC transaction,” Cosmos developers explained in a post
. “The user would then be required to log into another interface, this time representing chain B, and complete the remainder of the product flow.”
“With an Interchain-native product model, a user can complete the entire flow within a single, streamlined user experience where chains pass sets of instructions and execute transactions under the hood — all without the user ever having to leave the first interface,” they wrote.
Although blockchains are strong and can store immutable data, they cannot communicate. Cosmos, a network that works to solve this problem, allows users to access multiple blockchains through a single interface.
ATOM, Cosmos’ native token, was up a nominal 1.2% in the past 24 hours, CoinGecko data shows. In the context of a larger market decline, tokens have fallen 7% over the past week.