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I explored the ibc transfer and based on suggestions from @AdityaSripal , here's the conclusion on resolving denom hashes to respective chains utilising ibc and cns modules.
Process :
We use the channel and port obtained by parsing denom hash, to identify the clientId used for the respective ibc transfer. As we store a canonical ClientId on-chain using cns, it's possible to verify if the clientId(from denom hash) belongs to the same chain as Canonical ClientId. We further ensure this by comparing Consensus States(same val set) just in case someone creates a chain with similar chainId.
Future Improvements:
Would be nice to generalise this to other applications of ibc(out of scope for the intial implementations of cns)
Cons:
One concern we have is, it won't be possible to map denom hash to a particual chain in case the transfer has been routed through multiple chains to the hub. We can alternatively provide functionality to help wallets connected to multiple chains to resolve the denom hashes, but this wouldn't be possible using only on chain data
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