A little bit of chit-chat
A controversial proposal on the Cosmos Hub community forum suggests introducing permissioned smart contracts to cultivate a diverse ecosystem of decentralized applications (dApps). The aim is to position the Cosmos Hub as the "Apple Store" of trusted dApps, attracting the best applications from all connected IBC chains and bringing liquidity directly to the hub. By embracing permissioned dApps, the proposal seeks to prevent the Cosmos Hub from becoming just one hub among many and foster unity and collaboration within the ecosystem. The supporters believe this move will unlock the hub's full potential, making it the central destination for cutting-edge dApps and ensuring a prosperous future for the entire Cosmos ecosystem. However, the proposal is likely to generate debates within the community due to its controversial nature and the balance between permissioned and permissionless approaches in the decentralized space.
Nebular Summit Wrap Up
After a busy week in Paris, in this edition, we bring some of our notes from Nebular Summit, the Cosmos conference taking place during EthCC.
Merging L1s and L2s: During the panel “Are L1 Appchains & Rollups Really that Different?“, the speakers discussed the potential merge of Layer 1 and Layer 2 ecosystems, citing the rise of shared sequencers for L2s. They mentioned the concept of "Atomic Crossroad Composition," where multiple Rollups could interact atomically on the same shared sequencer. If this becomes feasible, it could make deploying applications as Rollups more attractive, offering increased composability and efficiency. However, the idea remains theoretical, and its implementation would require further advancements in L2 technologies.
Modular security and interoperability: Modular security and sovereign interoperability are two essential pillars of Hyperlane's vision for efficient and decentralized connectivity between modular blockchains. With modular security, Hyperlane allows for the customization of security protocols based on the context and size of transactions, similar to how banks adjust their security measures for different types of actions. This ensures that each transaction receives an appropriate level of protection, enhancing the overall security of the interconnected chains. On the other hand, sovereign interoperability empowers users and creators of app chains to connect with others on their own terms, without the need for permission.
Governance as a base layer: In the panel discussion “How to Scale On-Chain Governance”, there was a consensus that Cosmos should consider implementing governance as a base layer framework. This approach envisions a foundational layer of governance tools and mechanisms built into the Cosmos protocol, providing a standardized set of functionalities. The base layer framework would offer a set of fundamental governance features that can be used by all the interconnected blockchains within the Cosmos ecosystem. This approach allows for more flexibility and experimentation at the application layer, where individual projects can customize and tailor their governance mechanisms to suit their specific needs and community preferences. By having governance as a base layer, Cosmos aims to foster interoperability, streamline decision-making processes, and promote a healthy and decentralized ecosystem where all stakeholders have a voice in shaping the future of the network.
Is Proof of Stake done? Sunny Aggarwal, co-founder of Osmosis, foresees a shift away from the current proof-of-stake consensus mechanism. Instead, he envisions the adoption of innovative consensus protocols, particularly web-of-trust based systems. These systems rely on reputation and trust networks to achieve consensus, providing an alternative approach to traditional proof-of-stake models. By embracing such decentralized identity and reputation systems, the ecosystem could move towards greater security and decentralization, ensuring a more inclusive and resilient network architecture.
ABCI++ is a game changer: Thanks to the deployment of ABCI++, Skip will be releasing a set of features starting with Sovereign Oracles. ABCI++ can facilitate building a chainlink-like oracle system natively within a chain. By using vote extensions and encrypted bundles, the application can securely and privately retrieve data from multiple sources and make it available on-chain for use in smart contracts. And Sovereign Blocks, a feature for allowing applications to granularly decide how their blocks are built. Different lanes can be used for specific types of transactions, enabling custom fee markets and specific transaction prioritization.
Are Cosmonauts exhausted? User activation within the Cosmos ecosystem is crucial for the growth and success of its applications. Currently, many projects in Cosmos face challenges in onboarding and engaging users effectively. This could be due to factors such as a burned-out community from past market downturns or a lack of compelling incentives to try out new applications. To address this, innovative approaches are required, such as peer-to-peer activation models and creating more frictionless user experiences. The goal should be to motivate users to explore and utilize different applications within Cosmos actively.
Overall, there was an important focus on the L1 vs. L2 narrative, with a growing focus towards modularity. Indeed, there is a common consensus that the next 12 months will be critical for Cosmos to maintain its position in the market and compete with other ecosystems. The focus on user engagement, developer empowerment, and real-world applications will be key to driving growth and success.
Wrap Up
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