Interoperability-focused blockchain network Cosmos has dropped a new white paper proposing a revamped Cosmos Hub aimed at strengthening interoperability and security, along with key changes to its Cosmos (ATOM) token.
The Cosmos whitepaper was published Monday at the Cosmoverse conference, Medellin. Although technically the upgrades described in this white paper are still in “proposal” state, they will be updated on-chain by Oct.
Cosmos is a network of blockchains that scales and interoperates with each other. Cosmos Hub, the first blockchain built on Cosmos was initially used as an intermediary among other interconnected blockchains.
ATOM can be used to transact within Cosmos’ ecosystem. It can also serve as a tool for governance and staketaking.
Cosmos will be more interoperable and decentralized under the proposed changes.
One of the changes is the reinvention and renaming of the Cosmos Hub into the Interchain web. This will allow other Cosmos blockchains, rather than finding their own validator pool, to borrow the Hub’s network to protect it.
Added by Billy Rennekamp as the Cosmos Hub Product Lead, that the value proposition behind the transition to Interchain Security would also allow the Cosmos network to be “legally, defendably decentralized.”
According to the whitepaper, Interchain Security will allow Cosmos Hub “to host a new category of applications with complement functionality,” according to the paper.
Interchain Security offers consumer chains a quicker, easier and cheaper route to market. The development platform provided by Interchain Security permits […] third party to use the Hub’s vital infrastructure to build commercial applications.
According to the whitepaper, the white paper proposes a new ATOM issuance model. This is to achieve a better balance between interchain adoption and ecosystem growth “while still maintaining the security afforded under the original regime.”
Two phases will be used in the new monetary policy: transition and steady state.
In the transition phase, 10,000,000 ATOM will be issued within the first month. The rate of decline will continue until the steady state phase is reached 36 months later.
Ethan Buchman , co-founder of Cosmos, stated that the new token issuance model would allow other Cosmos blockchains become more interconnected with ATOM and the Cosmos Hub.
Related: While most of the crypto market has fallen, Cosmos (ATOM), is still up. Why?
In addition, the white paper outlined a plan for increasing ATOM token’s value by enabling liquid staking.
This will enable ATOM holders to retake ATOM just as quickly as they staked them. The Cosmos “liquid-staking module” will soon make this possible.
According to the whitepaper, liquid stalking offers “substantial” improvements in capital efficiency and user experience.
Intern notes about Cosmos’ 27-page whitepaper
– Economic Scaling Security
– $ATOM Reserve currency
– A new economic engine
It’s definitely worth reading!
— (Delphi, Intern) (@delphiintern)
September 26, 2022
The white paper was released just weeks after Delphi Labs, a research and investment firm, announced a shift in its R&D efforts towards the Cosmos ecosystem.
Research firm highlighted network speed, chain liquidity and sufficient decentralization as key factors in its decision to support the growth of Cosmos.