SEDA IVM Article

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SEDA Interoperability Verification Modules (IVMs): Everything You Need To Know

IVMs are a plug-and-play solution for interop protocols, increasing security, providing horizontal scaling, and enhanced decentralization.

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2025, the year of Interop 3.0, marks a shift as traditional interoperability architecture begins to modularize, making way for purpose-built projects with specialized solutions. SEDA is proud to introduce the Interoperability Verification Module (or IVM), an upcoming out-of-the-box verification solution built on top of the SEDA Network. The IVM is a powerful framework designed to enable interoperability protocols to support any network, route, token or virtual machine.

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In order to scale with demand from a growing list of networks and tokens, existing relay and verification providers have preferred a trusted setup that typically consists of a multisig and other centralized infrastructure for relaying messages between networks. IVMs are designed to be inherently scalable and can be added to the existing interoperability framework. IVMs aim to provide a significant upgrade over the multi-sig model, with liveness guarantees, a programmable framework, and enhanced Layer 1 network security. Any interop provider can add additional secure verification for any cross-chain action by plugging into SEDA's permissionless IVM framework.

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In this article, we explore interoperability’s journey to modularization, triggering an emergence of new verification marketplaces, and how SEDA IVMs represent a significant upgrade to current models. 

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Article Overview

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1. The Modularization Of Interoperability
2. An Emerging Verification Market
3. SEDA’s IVM | Benefits And Upgrades
4. Configuration And Deployment Of IVMs
5. Breaking Down SEDA’s Distributed Architecture
6. The Future Of Interoperability With SEDA IVMs

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The Modularization Of Interoperability 

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Early 2024 saw a surge in new projects developing highly specialized solutions to modularize traditional monolithic blockchains. This shift toward modular tech stacks enables the creation of purpose-built solutions that outperform conventional all-in-one designs, representing a natural evolution of blockchain architecture designs. Throughout the early quarters of 2024, the unbundling of blockchain infrastructure led to significant growth of the modular thesis, leading to an explosion of projects specializing in data availability (e.g. EigenDA), consensus (e.g. Eclipse), execution (e.g. Monad), or settlement (e.g. Espresso) layers. 

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In the later quarters of 2024, the modular approach evolved beyond just breaking down monolithic chain architecture to deploying even more purpose-specific, highly specialized chains. These new networks emerged in various forms, including SEDA for programmable oracle data infrastructure, app chains like Unichain and Ink, and dedicated account L1s such as Particle Network and Arcana.

By late 2024, specialized solutions emerged for virtually every component of the blockchain stack. This explosion of new networks catalyzed Interop 3.0, where thousands of specialized chains will need to communicate seamlessly, with custom logic, to create a unified, frictionless user experience across all chain clusters and ecosystems.

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Message-based bridges dominated interchain communication during Interop 1.0 and 2.0. This era saw the emergence of multiple bridge designs, ranging from liquidity-based solutions and token standardization (like Warp and OFTs) to newer innovations, such as intent-based bridges developed by Across and Relay. These advancements reflect the continuous evolution of interoperability models, adapting to serve an increasingly cross-chain-focused Web3 ecosystem.

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Like monolithic blockchains, interoperability providers must modularize their infrastructure by incorporating specialized solutions to stay relevant in Interop 3.0. As volume, transaction-complexity, and interchain routes grow and mature exponentially, legacy systems have shown their limitations, experiencing significant downtime during periods of high demand. Interoperability providers still relying on architecture designed for yesterday's blockchain landscape risk obsolescence as more sophisticated, purpose-built solutions and plug-ins emerge.

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Recent transaction volume data shows intent-based bridges like Across and Relay leading the market for daily transactions, alongside aggregators like Li.Fi and Jumper, indicating a shift toward modern, specialized interoperability solutions for low-value cross-chain swaps. However, for high-volume cross-chain transfers, protocols such as Stargate powered by LayerZero , CCIP, and Wormhole lead the market when looking at daily transaction count and monthly volume, ranging from one to over five billion dollars. This data suggests that users are opting for faster intent based systems for low value swaps while preferring robust message-based protocols for high-value transfers.

As the industry expands to thousands of chains and transactions, modular interoperability stacks offer a viable path to meet growing demands, while offering the development flexibility required by specialized chains. This modularization of architecture leads to the creation of new markets. SEDA is focusing its flagship modules on the emergence of a new marketplace: verification. 

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Editor’s Note: The interoperability landscape is not so black and white. Newer models, including intent-bridges, are intertwined with existing, more robust designs, such as message-bridging. To learn more about the relationship between both designs, we suggest reading “Why we need both intents and messaging” by Hyperlane.

An Emerging Verification Marketplace 

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The modularization of interoperability has created diverse specialist markets, ranging from intent frameworks (e.g. Enso & Anoma) and Solver Networks (e.g. Khalani) to orchestration and execution environment protocols (e.g. Biconomy), abstraction solutions (e.g. Socket), and SEDA's core focus on verification.

Separating verification from traditional interoperability designs enables the industry to pursue more decentralized models that deliver essential Web3 verification features, including robust security, liveness guarantee, programmability, and horizontal, uniform scalability. While current verification methods rely primarily on protocol-managed multi-sigs and centralized validator models, recent incidents highlight the need for more robust solutions.

Over the years, bridge hacks and system downtimes demonstrate that traditional multi-sig approaches, though instrumental in establishing early interoperability, need upgrading. By decoupling default verification from existing stacks and adopting purpose-built verification alternatives, providers can focus on securely expanding their services across new routes, while moving beyond limitations and mitigating the dangers of conventional verification models.

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Common Challenges Faced By Message Bridge Models

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Fragmented Security Zones 

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Leading message-based bridges LayerZero and Hyperlane have introduced different verification options with greater possible decentralization through their DVNs and ISMs, offering builders more customization.

While these solutions improve upon single protocol-managed multi-sigs, they present new challenges. Builders must now assemble complex verification stacks by using multiple relay and verification products across various routes.

For example, securing ten different routes requires creating custom combinations of verifiers, as no single third-party solution covers all routes. This leads to fragmented security zones with varying levels of guarantees and installment complexities.

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Downtime

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The fewer verifiers involved in the verification process, the higher the risk of system downtime. Consider a protocol using two verification providers, both of which must agree on chain state to trigger destination chain events. If one provider fails due to unexpected transaction surges, the entire bridge operation freezes, halting all cross-chain activities.

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Collusion

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Multi-sigs rely on multiple private key holders to sign transactions. If these keys are compromised by malicious actors or if key holders collude, verification messages can be manipulated to trigger unauthorized events on destination chains. For example, compromised multi-sigs could enable "infinite mints," where attackers generate unlimited tokens to their wallets on the destination chain.

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‍Restrictive Multi-chain Expansion

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Traditional multi-signature systems require manual chain integrations to establish new routes, which worked in simpler blockchain ecosystems. However, with thousands of emerging chains, this approach creates bottlenecks for interoperability providers seeking to expand their network coverage. Where SEDA’s Prover, similar to the single security zone created, will be available for deployment to any network on a permissionless basis.

Centralized Point Of Failure

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The three challenges above stem from the inherent risks of single point of failure in existing verification design. While LayerZero V2's programmable DVN stack advances distributed verification options, SEDA's IVM framework is designed as a complementary solution aimed at resolving zone fragmentation and improving integration efficiencies, while mitigating downtime and collusion risks.

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SEDA’s IVM | Benefits And Upgrades For Interoperability 

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SEDA's flagship IVM framework is designed to lead the emerging verification market by addressing default verification challenges through programmability, horizontal scalability, and a distributed network architecture consisting of Layer 1 chain security inherited from the SEDA Main Chain.

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IVM Benefits

Single Security Zones

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Unlike customizable verification stacks, SEDA provides a single security zone encompassing all chains with a permissionless SEDA Prover contract. Applications, protocols, and networks can join this unified security zone through a simple IVM deployment. 

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Liveness Guarantees by Default

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SEDA's architecture combines a Proof-of-Stake main chain secured by over 100 validators with a distributed Overlay Network of thousands of nodes. This design prevents downtime through workload distribution. If nodes on the main chain or Overlay Network go offline, the distributed nature of SEDA’s model ensures other nodes can step in.

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Programmable Replication Factors

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Unlike traditional multi-sigs, where protocols typically use limited signers (1/1 or 2/3), SEDA IVMs allow protocols to customize their verification committee size from the Overlay Network. Decentralization in SEDA is a sliding range that can be adjusted to include more nodes in a committee leading to increased decentralization for verification.

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Editor’s note: LayerZero V2 offers replication customization for its DVNs, which could complement SEDA’s IVMs, offering liveness guarantees and unifying fragmented security zones. 

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Cryptographic Tamper-Resistance

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SEDA’s Main Chain wraps data results in tamper-resistant proofs signed by main chain validators, reducing the risk of Solvers manipulating verification results, while relaying to destination chains. When SEDA is a mandatory signer in a verification stack, its verified data can help mitigate compromised multi-sig triggers, creating an essential security safeguard.

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Mitigated Collusion Risk

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Unlike basic multi-sigs that may be breached through private key compromise, SEDA provides Layer 1 security through its Cosmos SDK-based Proof-of-Stake network. Manipulating data requests would require attackers to control two-thirds of the network's economic stake, significantly raising the security threshold.

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Configuration And Deployment Of IVMs

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1. A Programmable Verification Framework For All Interoperability Solutions

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The SEDA IVM will provide immediate utility while enabling interoperability providers to customize the framework through its Oracle Program toolkit. This programmable infrastructure allows providers to:

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• Define what routes are included
• Define the data sources and RPCs queried
• Upgrade modules to include new routes and tokens
• Specify what data on source chains are required
• Instruct how data is returned for consumption
• Create a custom replication factor for Overlay Node secret committees

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This programmability enhances IVM compatibility across all virtual machines and bridge designs. While limited customization may result in developers opting for default verification, SEDA's day-one configurability is designed to enable any provider to enhance their service with IVMs, supporting all application types.

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2. Permissionless, Open-Source SDKs For All

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Permissionless access is a core SEDA principle, with its open-source IVM framework soon available for deployment by any interoperability protocol. This universal accessibility helps reduce developer blockers faced when accessing legacy solutions that may not have alternative verification available from day one.

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Breaking Down IVM Architecture

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1. The Module - A SEDA-Built Oracle Program

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IVMs leverage SEDA's unique Oracle Program toolkit, enabling builders from any chain to create custom data feeds. Built with this toolkit, the IVM framework will provide immediate verification solutions while maintaining full configurability for specific requirements.

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2. Decentralized Solver Network - Omnichain Transmission

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A decentralized Solver Network facilitates communication with SEDA and any blockchain where a Prover Contract is deployed. When triggered, Solvers relay verification requests, monitoring permissionless SEDA Prover Contracts on source chains. This design eliminates SEDA’s need to redeploy its infrastructure to new networks, enabling omnichain data transmission across current and future chains.

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3. The Prover Contract - Industry-Wide Interoperability, One Integration

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SEDA Prover contracts are the point of network communication between Solvers and the SEDA Chain. To be made available in any blockchain language, Provers parse SEDA-generated proofs that verify the data result has come from SEDA.  

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4. Independent Overlay Network - Decentralized Attestation

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SEDA's Overlay Network deployment will progress from selected operators to tens of thousands of independent nodes. For each verification request, a secret committee of Overlay Nodes queries specified RPC providers. This design ensures continuous operation through backup nodes, preventing the downtime common in traditional multi-sig systems. Nodes use a commit-reveal scheme to report data to the SEDA Chain, maintaining data integrity throughout the process.

To run an Overlay Node or participate in future rollouts, join the SEDA Discord.

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5. RPC Data Providers - High-Quality Data Access

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SEDA is built to connect to any public or private RPC endpoint and a full suite of data providers. By incorporating data proxy nodes and RPC endpoints, Interop protocols can manage which data providers to include when configuring an IVM.

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6. The SEDA Main Chain - Data Result Batching & Tamper-Provision

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Once data results are returned via the Overlay Nodes, they land on the SEDA Chain, which is batched and encrypted with cryptographic proofs signed by main chain validators. Tamper-resistant proofs are added to data batches as a security measure that ensures Solvers cannot manipulate data when relaying the results to destination chains.

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The Future Of Interoperability With SEDA IVMs

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The modularization of interoperability catalyzes specialized markets for plug-and-play solutions, driving unified Web3 experiences. SEDA IVMs are designed to provide accessible, secure, and scalable verification technology compatible with all interoperability stacks. As 2025 brings thousands of specialized chains hosting consumer applications, SEDA IVMs aim to enable permissionless access and programmable scalability for providers to securely verify any cross-chain interactions.

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Learn more about SEDA’s IVM frameworks here: https://docs.seda.xyz/home/overview/seda-overview/introducing-sedas-flagship-product-the-ivm

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