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Top Crypto News Today: Cosmos Blockchain reveals its New Whitepaper to power its native crypto token ATOM

Cosmos blockchain reveals its whitepaper to power its native crypto token ATOM

Key Takeaways

Cosmos is all set to transform into a hotbed of innovation. The project’s whitepaper outlined its aim of developing a Cosmos Hub to accelerate interoperability security and a change in its native token ATOM. According to Cointelegraph – a leading crypto publication, the whitepaper was released at the Cosmoverse conference in Medellin, Columbia. According to the paper, the new upgrades are yet to be implemented but the changes are expected to start on the chain by the first week of October,2022. 

Read simplified Crypto Whitepaper Summaries at CoinDCX blog

Cosmos is a cluster of blockchains developed to scale and connect with each other for better interoperability. Cosmos Hub was the first project  built on Cosmos which later became a point for the chain to establish interoperability. ATOM the native token of Cosmos is used for transactional purposes as well as for staking and governance. The Cosmos whitepaper says that the written developments in the paper will make the chain more interoperable and secure. 

According to the product lead at Cosmos, Billy Rennekamp, the proposed changes entails a value proposition, the transition to Interchain Security would make the Cosmos Network decentralised.

“Interchain Security gives consumer chains a faster, easier, and cheaper path to market [and] the development platform afforded by Interchain Security allows […] third parties to utilize the Hub’s essential infrastructure to build commercial applications,” – excerpt from the whitepaper. 

Cosmos’s paper also revealed that the project will introduce ‘liquidity staking’ which will attract better appreciation for ATOM.  The whitepaper was weeks after investment firm Delphi Labs announced its shift of priority and concentration towards research and development.The lab factored number of components like: network speed, chain liquidity, decentralisation and cross-chain interoperability. 

According to Ethan Buchman, “Cosmos Hub is taking its place within the interchain.” The Hub2.0 will not dominate the blockchain but will act as a medium for offering network related services. The new hub will simply enhance the interchain operations. 

Additional Read: Cosmos Price Prediction

Cosmos’ story so far…

Atom’s utility is layered. Individuals can stake their ATOM tokens to secure the network, but the overall activity on the chain has been average. Cosmos Hub was launched in 2019. The code has not been changed after that. The codebase is used as a template by developers to create multi chain solutions. 

“You would maybe just copy and paste all of the Cosmos Hub codebase, and then you would add your feature to it,” Billy Rennekamp, Cosmos Hub product lead at Interchain GmbH quoted. 

Cosmos’s code use cases

Osmosis, the app chain, uses Cosmo’s template to power DeFi : Decentralized Finance solutions like crypto exchanges. Regen, another decentralized application, used Cosmos’s Hub code for its on-chain carbon credit market.

Closing thoughts 

 “At the beginning, it’s the only home in the neighborhood. And once there’s a flourishing neighborhood around they might decide to convert it to a school, or a police station or something that’s specifically valuable to the neighborhood, rather than just a proof of concept for other houses.”  – an analogy quoted by Rennekamph.

As Rennekamp said, Hub2.0 will incorporate interchain  security. Which means applications built on Cosmos will have a token staking mechanism to secure the overall chain. For example Regen will stake REGEN tokens and Osmosis validators will use OSMOS tokens  

Additional Read: Osmosis Launches Staking Service in Cosmos

Source: CoinDesk 

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