The Cross-Ecosystem IBC is Picasso’s trust-minimized interoperability solution that enables communication between different blockchain networks. Originally designed for Cosmos SDK chains, Picasso extends IBC to include Solana, Ethereum, Polkadot, and Kusama, maintaining decentralization and performance while eliminating centralized intermediaries.

Generalized Restaking allows users to enhance blockchain security by using staked assets and yield-bearing tokens across multiple Proof-of-Stake networks. This pooled security model ensures that various decentralized services, such as interoperability, oracles, and sequencers, can operate with enhanced security guarantees.

Picasso uses a multi-layered security model that includes:

1. PICA Token Staking: Validators secure the network by staking the PICA token.
2. Generalized Restaking Layer: It leverages economically valuable assets for enhanced security.
3. EigenLayer Integration: Picasso collaborates with Ethos to bring EigenLayer security to the Cosmos ecosystem.
4. Additionally, Picasso is transitioning to Kauri consensus for scalability and Byzantine Fault Tolerance.

By staking PICA tokens, users contribute to the network’s security and gain access to governance activities. Stakers earn rewards from bridging fees generated by IBC connections. A portion of these fees is used to buy back PICA tokens from the market and distribute them as rewards to stakers.

Picasso is a community-driven protocol where PICA token holders participate in governance. They can vote on key decisions like onboarding new Actively Validated Services (AVS), adding liquid staked assets to the restaking layer, and managing protocol upgrades.

IBC serves as the backbone of Picasso’s interoperability efforts, allowing secure and efficient communication between blockchain ecosystems. Picasso has extended IBC beyond Cosmos SDK chains to support other major networks, maintaining the protocol's values of decentralization and censorship resistance.

Fees collected from bridging activities are used to buy back PICA tokens from the market, which are then distributed to stakers. For example, when ETH is bridged from Ethereum to Solana, a portion of the fees collected is allocated to PICA stakers. This mechanism applies to all bridged tokens across the network.

Picasso provides native protocol-level security, trust-minimized interoperability, and a seamless connection between multiple blockchain ecosystems. DeFi users benefit from censorship-resistant infrastructure, efficient asset movement, and enhanced security through the Generalized Restaking Layer.

Picasso is working on transitioning to the Kauri consensus, a Byzantine Fault Tolerant communication model. This will enhance scalability and load balancing while maintaining compatibility with IBC for seamless cross-chain interactions.