A little bit of chit-chat
Informal Systems announced its initiative to decentralize the Layer 2 (L2) space through the development of CometBFT, positioning it as a potential solution for the current reliance on centralized sequencers by L2 networks. This shift is aimed at enhancing the reliability and decentralization of crypto-economic systems, with CometBFT offering features such as modularity, API flexibility, fast finality, battle-tested reliability, off-the-shelf availability, and long-term maintenance guarantees.
The State of the Hub
The recently published Messari report on Cosmos Hub featured the recent tokenomics overhaul providing a succinct narrative of strategic evolution and adaptive measures within the ecosystem. Key highlights include the reduction of inflation from 14% to 10% and the introduction of an EIP-1559-like fee burning mechanism, initiatives born from the ATOM 2.0 paper and the Tokenomics RFP.
The report outlines significant growth metrics post-update, such as increases in ATOM's price, Cosmos Hub's revenue, daily active addresses, and transaction volumes, partly driven by Inscriptions-related activities. Furthermore, the deployment of Replicated Security, offering Cosmos Hub's validator set to other networks, notably Neutron and Stride, exemplifies the ecosystem's commitment to security and interoperability, contributing to a substantial rise in their Total Value Locked (TVL).
This narrative also touches on forward-looking governance and financial strategies, including the establishment of the Atom Alignment Treasury and the renewal of the Atom Accelerator DAO for 2024.
Stronger security
A proposal on the Cosmos Hub community forum outlines a plan to integrate the Cosmos Hub with the Babylon chain, leveraging Babylon's Bitcoin staking technology to boost the security of its Interchain Security (ICS) consumer chains. This integration aims to utilize billions of dollars worth of staked Bitcoin and Cosmos Hub's experienced validator set to enhance the security of its networks. The initiative positions the Cosmos Hub as a key security aggregator, drawing from various security assets to support innovation across its networks.
The technical approach includes implementing a CometBFT extension and Babylon's Bitcoin blockchain scripts, facilitating a trustless, seamless staking process. This system allows for strategically allocating rewards across native tokens, ATOM, and restaked Bitcoin, potentially attracting Bitcoin holders to the Cosmos ecosystem. Babylon's integration uses advanced cryptographic methods, ensuring secure, intermediary-free Bitcoin staking for PoS chain security, representing a significant stride towards a more secure and inclusive blockchain ecosystem.
Wrap Up
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