In this in-depth study, I will talk about : that is, the new updates that will arrive on . Today Cosmos is the central hub that, through IBC, connects all the independent chains that run on Cosmos itself: Osmosis, Secret Network, Akash, Regen, Starname, Juno Nerwork, EVMos, Stargaze, Persistence, Rebus, Stride, Quicksilver , etc All these chains are independent and with their own independent staking and validators therefore the safety of each of these chains depends on the staking of the chain itself. Some big validators are present on multiple chains but the security is given by the amount of native token entered on each node. Each of these layer1 also has its own token to pay gas fees.
INTERCHAIN ??SECURITY AND MESH SECURTY
The first update will be the mesh security: the chains will remain independent, however each chains will contribute to making the others safe as well. Sunny (the founder of Osmosis) gave the example of NATO to explain this concept. All the nations that are part of NATO are independent and autonomous, however they form a single aggregate, should one of these states be attacked from the outside. If one of these nations is attacked, the other states guarantee help.
All this will take place through Interchain Security in which Cosmos validators produce blocks and also secure all the other chains. To date, the security of each chain on Cosmos depends exclusively on its own validators. For example, the new layer 1 Neutron will not have its own validators but will rely entirely on those of Cosmos.
Atom validators and stakers will also be able to earn this new token and all the others who rely on them (Interchain Security). Not all validators on Cosmos are forced to validate all chains. It will be a small number of nodes that will validate third-party chains already born and others that will continue to be born. Those already born are equipped with their own validators but can also take advantage of the security of the validator nodes of Cosmos Hub. Clearly, security will be on both sides: Osmosis with its validators will receive help from those of Cosmos Hub and in the same way the Osmo validators will give a hand to Cosmos. And so for all the other chains incorporated (this goes by the name of Mesh Security). This should reduce the chance of suffering 51% attacks. One of the biggest problems with Cosmos Hub is centralization. There are about a hundred nodes, however it would be enough to take control of 6 nodes to affect the chain.
CROSS STAKING
Validators will therefore be able to validate more chains through IBCs, receiving more rewards but also a greater risk of slashing. However, a validator could offer a higher APR on staking, centralizing the chain. For this reason it will be allowed to do cross staking: put your Atoms in staking on the X validator and at the same time put them on the Juno Network chain on the Y validator.
CAPPED VOTING POWER
Since validators will be able to secure multiple chains, they could achieve enormous governance power over multiple chains using the same Atoms, without exposing themselves to the native token of the chain being validated so there will be a cap to the voting power.
ATOM 2.0
The tokenomics exchange will see enormously lower long-term inflation but higher inflation over the next year and a half. This increased supply input will go to a treasury and not to the Atom stakers.
Basically Cosmos Hub can be divided into three layers:
1) Cosmos Stack: IBC RelayersTendermint(CosmSwam)
2) Secure Economic Scaling: Interchain Security (the Cosmos Hub validators, as mentioned, will also be able to validate other chains and will also have more fees) and Liquidity Staking (the Atoms, in addition to being staked, can be used elsewhere as liquid derivatives)
3) Hub-Specific Functionality: Interchain Scheduler (Secure Block Space Market) and Interchain Allocator
The Schedular allows you to sell block space for validating transactions in that block, creating a cross-chain and multi-block arbitrage market. Conceptually the speech is similar to the MEV (maximum extractable value) which refers to the maximum value that can be extracted from the production of blocks in excess of the standard block premium and gas commissions (including, excluding and modifying the order of transactions in a block). The rewards of these block spaces go to the Interchain Allocator (however, what is the purpose has not been specified).
Among the many interesting things, perhaps the most controversial remains "Under Collateralized Financing". Which reminds me a bit of Terra (Luna and Ust). You can get an idea here:
Full paper:
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