On Monday, a group of Cosmos contributors published a new whitepaper outlining a proposal to add two new features to the Cosmos Hub, the primary blockchain of the Cosmos ecosystem.
Cosmos is a blockchain network comprised of application-specific, interoperable blockchains. Using the Inter Blockchain Communication (IBC) protocol, these chains are able to connect with one another. The Cosmos Hub is a decentralised blockchain protected by validators that stake ATOM, Cosmos’ native coin.
The value of Cosmos Hub’s native token has never been directly proportional to the expansion of the overall Cosmos ecosystem. This is due to the fact that it is merely one of many blockchains in the ecosystem, while most other blockchains have applications developed on top of their original chains – a far tighter link. As a consequence, the new whitepaper examines how the Cosmos Hub may use its position within the ecosystem to increase its value.
Cosmos contributors have suggested many additional features for the Cosmos Hub in a new whitepaper. The first feature is the Interchain Scheduler, a cross-chain marketplace that maximizes value extraction. MEV is the word for frontrunning on-chain. It is used by arbitrageurs who pay a fee to block manufacturers to guarantee that their transactions get preferential consideration.
According to the whitepaper, the Interchain Scheduler is anticipated to build a Cosmos-based multi-chain relay service (similar to Flashbots on Ethereum) that would allow Cosmos users to bid on blockspace across chains linked to the Hub.
The paper states, “By purchasing block space on separate chains, users may lock in arbitrage possibilities with solid execution assurances.” According to the authors, the Scheduler will channel fees collected by the cross-chain MEV marketplace toward the Cosmos Hub treasury.
Interchain Allocator is the name of a proposed software module that would allow Cosmos-based chains to collaborate on “economic coordination.” The purpose of this capability is to enable chains to construct “common good” apps on the Cosmos Hub that increase the ATOM token’s worth.
Zaki Manian, a Cosmos contributor and co-author of the whitepaper, told The Block that “The Scheduler and Allocator are important milestones for transitioning ATOM from Interchain Meme currency to actual utility in the IBC economy.”
Interchain Schedule and Allocator are both at the proposal stage. In addition to previously disclosed Cosmos Hub core capabilities such as interchain security and liquid staking of ATOM tokens, these two services will be introduced.
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