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Cosmos developers presented a new white paper of the project

At the Cosmoverse conference, the developers of the popular Cosmos blockchain ecosystem presented a new white paper of the project, which proposes significant changes to the core of the network.

The new White Paper proposes to significantly increase the functionality of the core of the blockchain – the Cosmos Hub system. Now it is mainly a template for creating independent networks, which are then combined into an “internet of blockchains”. But within the framework of Cosmos Hub 2.0, it is proposed to make it the core of the interchain security system. That is, independent networks will use Cosmos Hub to secure their own networks.

The developers also propose changes in the application and release schedule of ATOM coins. These changes will make ATOM a kind of analogue of a common index for the entire community of blockchains in the Cosmos ecosystem.

“With these changes, Cosmos Hub will take an important place in the interchain, but will not dominate, manage the ecosystem or unite all networks under its control. With the new Cosmos Hub services, the interchain ecosystem can continue to thrive and grow,” said Ethan Buchman, Cosmos co-founder and head of R&D at Informal Systems.

The main Cosmos Hub network is built on the Tendermint Core protocol. Although it was launched first, it is used for a small number of applications. But developers can copy the Cosmos Hub code, add their own functions, and launch their own blockchain. In doing so, it will become part of the Cosmos ecosystem, being connected to other networks. Now there are dozens of networks in the ecosystem, each of which exists independently. At the same time, data can move freely between networks.

For example, the Osmosis network used the Cosmos Hub codebase to create a decentralized finance (DeFi) application blockchain. Regen was created as a carbon credit store. The collapsed Terra ecosystem was also based on the Cosmos Chain code. At the same time, the Cosmos community had previously rejected proposals to expand the functionality of the Cosmos Hub – the role of the template for launching new networks was sufficient.

However, according to the developers, it’s time to change the main function. Billy Rennekamp, ​​head of Cosmos Hub at Interchain, compared the situation to the development of a residential area:

“Initially, you only have one house. But then the area develops, begins to flourish, more residential buildings are being built around. And the community can change the role of the first house, make it a hospital or a police station. So it will be more useful for the district, and will not remain just an example for builders.”

As part of the Cosmos 2.0 White Paper, new functionality will make Cosmos Hub the center of security for the ecosystem and move forward. The point is borrowing validators – the blockchains of the Cosmos ecosystem are built on the Proof-of-Stake algorithm, and the Cosmos Hub network has the largest number of validators. The developers propose to “borrow” validators to confirm transactions in other networks of the Cosmos ecosystem. Thus, network security is greatly improved.

“I think the security of the interchain is not only in a large market cap. I think the real security is for the network to be truly decentralized. In my opinion, the further, the more difficult it is to launch decentralized blockchains of the first level. And with the new functionality of Cosmos Hub, this will become much easier, it will be able to provide decentralization as a service,” Rennekamp emphasized.

Accordingly, the use of ATOM, the native cryptocurrency of Cosmos Hub, is changing. If Cosmos ecosystem networks want to use Cosmos Hub validators, they will have to use ATOM.

“ATOM provides a direct link to Cosmos. They will be able to use the security of ATOM and become part of the economic community built around Cosmos, the ATOM coin,” emphasized Buchman.

The White Paper also proposes to increase the popularity of ATOM through liquid staking. Now ATOM can be used for staking, but then the coins are locked at the address and users cannot sell them. As part of liquid staking, users still have the opportunity to trade ATOM coins – derivative tokens are used for this. And the developers will add the liquid staking feature to the Cosmos Hub.

“With our own liquid staking module, we will provide the best user experience and become one of the most convenient staking projects. With the new feature, ATOM coins will continue to secure the network, but remain liquid. And we can start offering new ways to connect the liquidity and security of the ATOM coin to other tokens in the ecosystem,” said Buchman.

The White Paper also describes other changes in the ATOM ecosystem and tokenomics in sufficient detail. For example, it is planned to introduce a long-term plan to reduce the number of issued tokens.

At the end of July, it became possible to move assets between the Polkadot and Cosmos ecosystems. The feature was launched as part of a collaboration between Moonbeam parachain developers and the Osmosis exchange.

Source: Bits

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