The inter-blockchain communication protocol (IBC) creates communication between independent blockchains. IBC achieves this by specifying a set of structures that can be implemented by any distributed ledger that satisfies a small number of requirements.
IBC facilitates cross-chain applications for token transfers, swaps, multi-chain contracts, and data sharding. At launch, Osmosis utilizes IBC for token transfers. Over time, Osmosis will add new features that are made possible through IBC.