the blockchain network Interoperability-focused Cosmos has published a new whitepaper proposing a revamped Cosmos Hub aimed at strengthening interoperability and security, along with key changes to its native ATOM token..
Cosmos’ new white paper was released Monday at the Cosmoverse conference in Medellin, Colombia. The enhancements outlined in the whitepaper are still in “proposed” status, but changes are expected to be made on-chain on October 3.
Cosmos is a blockchain ecosystem designed to scale and interoperate with each other. Cosmos Hub was the first blockchain to be built on top of Cosmos, initially serving as an intermediary between other interconnected blockchains..
the token ATOM is used to transact within the Cosmos ecosystem, which can also be used for governance and staking purposes.
With the proposed changes, Cosmos will become a more interoperable, decentralized and secure ecosystem..
One of the changes outlined is the reinvention of the Cosmos Hub as the “Interchain” network, which will allow other Cosmos blockchains to borrow the Hub’s pool of validators to secure their network. instead of having to find your own.
Billy Rennekamp, the product manager for Cosmos Hub, added that the value proposition behind this transition to Interchain security will also make the Cosmos network “legally and defensively decentralized”.
According to the white paper, Interchain Security will also allow Cosmos Hub to “host a new category of applications with complementary functionality”stating:
“Interchain Security offers consumer chains a faster, easier and cheaper path to market, [y] the development platform offered by Interchain Security allows them to […] allow third parties to use the essential infrastructure of the Hub to build commercial applications.”
The white paper also proposes a new issuance model for the native ATOM token, with the aim of achieving a better balance between ecosystem growth and Interchain adoption. “while preserving the security offered by the original regime,” according to the white paper.
The new monetary policy will have two phases: “transition” and “steady state”.
In the transition phase, 10,000,000 ATOMs will be issued in the first month, which will then decrease at a decreasing rate until reaching the steady state phase 36 months later..
Cosmos co-founder Ethan Buchman said that this new token issuance model would allow other Cosmos blockchains to be more interconnected with the Cosmos Hub and ATOM.
The white paper also outlined a plan to further accrue value to the ATOM token by enabling liquid leveraged staking..
This will allow ATOM holders to unstake ATOM tokens as easily as they are staked, which will soon be enabled by Cosmos’ “liquid staking module”..
“The user experience and capital efficiency improvement offered by liquid staking is so substantial” that it required “full economic integration” into Cosmos’ new interconnect-oriented ecosystemaccording to the technical document.
Intern notes on Cosmos’ new 27 page whitepaper
TL;DR
– Secure economic scaling ⛓
– $ATOM as reserve currency
– New economy engineDefinitely worth a read!
(1/2) pic.twitter.com/OseBg1kBYp
— (Delphi, Intern) (@delphiintern) September 26, 2022
Insider notes on Cosmos’ new 27-page white paper
TL;DR
– Secure economic scaling ⛓
– $ATOM as reserve currency
– New economy engineIt’s definitely worth a read!
(1/2) pic.twitter.com/OseBg1kBYp
The publication of the white paper comes a few weeks after Research and investment firm Delphi Labs to announce a shift in its R&D efforts to focus on the Cosmos ecosystem.
The research firm highlighted network speed, chain liquidity, sufficient decentralization, and cross-chain interoperability as the key factors behind its decision. to provide R&D efforts to help fuel the growth of Cosmos.
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