Web3 often looks like a maze of different chains, tokens, and communities that are fragmented from one another. Assets of all types — tokens and non-fungible tokens (NFTs) — are typically tied to the chain they were created on and cannot be easily transferred to another chain or application. Markets and platforms cannot develop when there are limited means of exchange and overlap.

Why is this the case? Why should NFTs be limited to the chain on which they were created? NFTs should be able to be transferred seamlessly and securely, whether on chain A, B, or C. A single network should not dictate how you use, trade, or manage your assets.

Cross-chain NFTs change that. While most NFTs are tied to only one blockchain, cross-chain NFTs are multi-chain. Cross-chain NFTs enable users to transfer their digital assets across previously fragmented networks, giving them the flexibility to choose which chain their NFTs use. No longer constrained to a single chain, users can take advantage of the unique features and communities of different chains, platforms, and applications.

How exactly does this work?

Interchain NFTs use a new upgrade to the interchain (IBC) protocol ICS-721. Think of IBC as a universal standard for bridging different networks. With the security and compatibility of the protocol, users can now create, transfer, and track ownership of their cross-chain NFTs as they move from one chain to another. All ownership data and asset updates are preserved in transit without any additional permissions. To keep things simple for users, all important features of an NFT, such as minting or burning, are also retained on the original chain where it was created, ensuring that you can still use the chain you trust to manage your assets. They comply with existing NFT standards such as ERC721 and CosmWasm to guarantee that your cross-chain NFTs are compatible with other tokens in use today.

what does that mean?

Cross-chain NFTs will create all new surface area for developers and artists to unleash their creativity. Projects like the “simulated virus” NFT Kudzu have already hinted at the potential for NFTs to change state when transferred. Now, developers can leverage multiple chains when building NFTs, whether reflecting the state of multiple chains or creating a multi-chain metaverse or game world. As NFTs are increasingly used to represent governance rights and access keys for token-gated communities, cross-chain NFTs provide a larger, more liquid market and better price discovery for assets for these use cases.

The first test of a cross-chain NTF transfer took place in November. Notably, the Iris<> Stargaze transfer demonstrated that NFTs can be successfully transferred even if their underlying implementations are different: Iris is based on the Cosmos SDK, while Stargaze leverages Web Assembly. The IBC protocol is not just a bridge designed for a single type of implementation, but a true standard for connecting chains built with different technologies.

How will this benefit users?

Interchain NFTs offer users a choice of chain, and with it the freedom to take their art, collectibles, and other assets to the marketplace of their choice. More chains not only means more exposure and a larger basis for trading these assets, but it also means users will be able to lend their NFTs, use them as collateral, or redeem them for DAO tokens to become part of different communities. While overall NFT trading volume may be down, some of the top NFT collectibles have actually increased in price. With Interchain NFTs, users can ensure they have access to the best opportunities and markets. They are already doing so.

What differentiates cross-chain NFTs from other inter-chain transfers is that the underlying protocol is a trust-minimized protocol, meaning it does not rely on anonymous third parties or authentication of transfers. Unlike most bridging solutions, all that is required is trust between the two chains in the transfer. This level of security and reliability is why users and developers are turning to the IBC protocol. IBC was released less than 2 years ago, and currently has 53 chains supporting it, with cross-chain transfers set to reach $30.3 billion by 2022. Now cross-chain NFT transfers can expect the same standard of speed and security.

The launch of the IBC protocol in 2021 brought the Interchain vision online, connecting isolated communities competing for funding and attention in a disjointed ecosystem. Now, the launch of Interchain NFTs extends the freedom of action enjoyed by Interchain citizens to non-fungible tokens, connecting more chains and people. With this tool, Web3 looks less like a maze and more like a series of open paths.