The new updates will make Cosmos a more secure, decentralized, and interactive ecosystem.
Cosmos, a decentralized network ecosystem combining independent blockchains, has released its revamped white paper.
According to the Cosmos 2.0 white paper presented during the Cosmoverse conference in Medellin, Colombia, the Cosmos Hub will expand its utility and introduce the new version of ATOM.
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The white paper notes that the primary purpose of this update is to make Cosmos a decentralized, secure, and more interoperable ecosystem.
Cosmos Hub was the first blockchain built on Cosmos. It functioned as an intermediary between interconnected blockchains. The new update aims to make Cosmos Hub the Interchain web. With this update, other Cosmos blockchains will be able to borrow Hub’s validator pool. This way, the blockchains won’t need to search for their own validators, at the same time, securing their network.
During the update presentation, The Cosmos Hub product lead Billy Rennekamp noted that the transition to Interchain Security is set to make Cosmos “legally, defensibly decentralized.”
Regarding Interchain Security, the Cosmos 2.0 white paper notes:
Interchain Security gives consumer chains a faster, easier, and cheaper path to market the development platform afforded by Interchain Security allows [...] third parties to utilize the Hub’s essential infrastructure to build commercial applications.
The white paper also outlines plans for the new model of its native token, ATOM. Cosmos expects to boost the token's value by adding leverage liquidity staking. Moreover, the white paper proposed a framework for reducing the token issuance rate. The proposal will be applied in two stages: “transition” and “steady state.”
In the “transition” stage, during the first month, Cosmos is planning to issue 10,000,000 ATOM. After that, the issuance rate will decline until reaching a steady stage 36 months later.
It is worth noting that the changes outlined in the new white paper are expected to be implemented on October 3rd.
At the time of writing, ATOM retails for $13,00. However, it has seen a 3,4% surge in 24 hours after the release of the white paper, reaching a price of $14,57.
