Interoperability-focused blockchain network Cosmos has released a new technical document proposing an updated Cosmos Center aimed at enhancing interoperability and security, as well as major changes to the Cosmos token (ATOM).
Cosmos’ new white paper was released Monday at the Cosmoverse Conference in Medellin, Colombia. The updates described in the white paper are still technically in the “suggested” state, but the changes are expected to be made online on October 3.
Cosmos is a blockchain ecosystem designed for scalability and interoperability. The Cosmos Hub was the first blockchain created on Cosmos, initially serving as an intermediary between other interconnected blockchains.
ATOM is used for trading in the Cosmos ecosystem, which can also be used for management and storage purposes.
Under the proposed changes, Cosmos will become a more efficient, decentralized and secure ecosystem.
One of the intended changes is to reinvent the Cosmos Hub as an “Interchain” network, which would allow other Cosmos blocks to borrow the Hub’s pool of validators to secure the network, rather than searching for their own network.
Billy Rennekamp, Product Manager at Cosmos Hub, added that the value proposition behind this transition to Interchain Security would make the Cosmos Network “legally and properly decentralized.”
According to the white paper, Interchain Security will also allow the Cosmos Hub to “become a new class of apps with additional features,” which states:
“Interchain Security provides consumer networks with a faster, easier and cheaper route to market, [and] the development platform offered by Interchain Security allows third parties […] to use the core infrastructure of the Center to build commercial applications.”
The white paper also proposes a new release model for ATOM that aims to better balance ecosystem growth and cross-chain adoption “while maintaining the security afforded by the original mode,” according to the white paper.
The new monetary policy will consist of two phases: “transitional” and “sustainable”.
During the transition phase, 10,000,000 ATOM will be released in the first month, which will then decrease at a decreasing rate until the steady state phase is reached after 36 months.
Cosmos co-founder Ethan Buchman said this new token issuance model will allow other Cosmos blockchain networks to become more interconnected with the Cosmos Hub and ATOM.
Related: Most Crypto Market Drops, But Cosmos (ATOM) Price Rise – Why?
The white paper also outlines a plan to increase the value of the ATOM token by providing an enhanced liquid cohesion.
This will allow ATOM owners to participate in ATOM as easily as possible, which will soon be available through Cosmo’s “Fluid Storage”.
According to the white paper, “the user experience and capital efficiencies provided by Fluid Pursuit are so important” that they require “full financial integration” into the new cross-chain Cosmos ecosystem.
The white paper was released just weeks after research and investment firm Delphi Labs announced it would shift research and development efforts to focus on the Cosmos ecosystem.
The research firm cited network speed, on-chain liquidity, adequate decentralization, and cross-chain interoperability as key factors behind the R&D decision to support Cosmos’ growth.
