To expand the practicality of ATOM token Cosmos starts security sharing

1 year ago 83

Expanding the practicality of ATOM

The crypto asset (virtual currency) Cosmos (ATOM) project announced on the 12th that “Replicated Security”, a mechanism for sharing security within the network, has started operation.

Blockchain “Neutron”, which provides smart contract functions, has started block generation on the Cosmos network and uses the security of “Cosmos Hub”. The Cosmos project explained that the launch of shared security will usher in a new era of utility for ATOM tokens.

1/ The first #Cosmos native shared security model just got adoption @Neutron_org is the first Consumer Chain to leverage @cosmoshub Replicated Security.

Replicated Security brings a new era of utility for #ATOM

Appchains can now launch with the economic security of #ATOM pic.twitter.com/sMp6mXhjPC

— Cosmos – Internet of Blockchains (@cosmos) May 11, 2023

Cosmos is a project that realizes interoperability between different blockchains. A blockchain called “Cosmos Hub” plays a central role among these blockchains.

connection: What is cosmos (ATOM) that even beginners can understand | Explaining points of interest and future potential

When a new project develops a blockchain and provides services, one of the first challenges is ensuring security. Resources must be allocated not only to core operations such as product development, but also to ensuring security.

“Replicated Security” is the means to solve this problem. Shared security means that Cosmos Hub validators validate blockchain transactions that join the Cosmos network.

Replicated Security was formerly known as Interchain Security (ICS). Blockchains that share security with Cosmos Hub are called “Consumer Chains”.

In exchange for verifying transactions, Consumer Chain shares revenue with Cosmos Hub. The shared revenue will be distributed to ATOM token validators and delegators.

What is a validator

A node that verifies the validity of data recorded on the blockchain. A delegator is someone who delegates validation to a validator.

Cryptocurrency Glossary

What is Neutron

Neutron is the first Consumer Chain to leverage Replicated Security. From now on, we will start full-scale operation while utilizing the security of ATOM token staking.

The official website describes Neutron as “a smart contract platform for DeFi (decentralized finance).” It is a secure smart contract platform built on Cosmos’ development kit “Cosmos SDK” and protected by staked ATOM.

connection: What is DeFi (decentralized finance) | A thorough explanation of the advantages and disadvantages that even beginners can understand

Neutron has just launched, and the plan is to gradually ramp up operation, with the first two weeks being the preparation period.

Next, as the second Consumer Chain, the DeFi project Stride is scheduled to start operation. On the 12th, it also announced that Stride has been approved by the community to go live.

1/ Cosmonauts, Stride is coming