On Monday, the 27-page whitepaper for the blockchain interoperability platform Cosmos was released. It makes significant updates to Cosmos Hub and its native coin ATOM.
The paper was released at the Cosmoverse conference in Medellin, Columbia, outlining that “The vision of the Cosmos Network, as laid out in 2016, has been realized…
The interchain as originally imagined is taking form.”
Cosmos Hub improves its issuance philosophies
In the white paper, the Cosmos Hub, which was formerly in charge of building the internet of blockchains, has shifted its emphasis to creating a strong interchain economy. According to the document, “In this new capacity, the Cosmos Hub provides a secure platform for others to create the next generation of infrastructure and apps that are interchain-native, enabling new prospects for interchain coordination.”
It is noteworthy that the paper emphasizes liquid staking and interchain security as a cooperative effort to provide a more secure, decentralized, and interoperable foundation for businesses that want to profit from these interchain services.
As a result, Cosmos Hub’s issuance philosophy has been updated to include being a “supplier of infrastructure services whose utility scales with the growth of the interchain.” As a result, native ATOM’s role as preferred collateral inside the network is repurposed.
The paper underlined, “Liquid Staking providers will be the first users of Interchain Security [allowing Cosmos to share security with other blockchains], enabling ATOM holders to earn staking rewards while also using their ATOM to pursue other opportunities.”
As an interchain reserve currency, the Cosmos Hub’s monetary policy, which is centered on the staked ATOM supply, aims to strike a balance between security and liquidity.
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