Understanding ICS 2.0 (Partial Set Security) in 15m
Given the launch of ICS 2.0, referred to as Partial Set Security (PSS), we have been tasked to build a financial model as part of a grant submission to the Atom Accelerator DAO (AADAO). Given the prevalent misconceptions regarding shared security models, we recognized the critical need to address this matter. Our proposed solution involved developing a comprehensive financial model to elucidate the underlying mechanics, it also included an educational video targeted to popularize this update to the broader community. Abstract: This video covers all the extensive knowledge every Cosmonaut should be aware of regarding the InterChain Security 2.0 and the PSS, in only 15m. Unleashing ATOM’s Potential: The Transformative Impact of Partial Set Security and ICS 2.0 on Cosmos The Cosmos ecosystem has long been recognized for its foundational role in blockchain innovation, particularly through its development of the Tendermint consensus algorithm and the Inter-Blockchain Communication (IBC) protocol. However, despite ATOM’s contributions to the success of other Layer 1 (L1) chains, many have argued that it lacked a distinct, proprietary use case. Cosmos’ expansion…
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Govmos:with potential annual percentage rates (APRs) ranging from 30% to 120%.
This change turns ATOM into a commodity that powers a competitive marketplace of validators. Investors will need to carefully assess which validators offer the best risk-reward profiles based on the consumer chains they support
Can you maybe elaborate a little on this, with an example (hypothetical)? That would be great.
What risks? And how do you get the numbers 30 ton 120?
Thanks in advance?
StunZeed:Can you maybe elaborate a little on this, with an example (hypothetical)? That would be great.
Certainly, let’s delve further into this highly engaging topic. To clarify, the Cosmos Hub itself is the commodity, functioning as the platform that operates the ‘competitive marketplace for validators.’ ATOM, on the other hand, exists in multiple forms: liquid, staked, and liquid staked. Its commodity aspect can only be truly evaluated in its staked form, as this is when it is fully utilized to secure the network, a fundamental aspect of the Proof of Stake system. In contrast, the liquid and liquid staked forms are more aligned with capital, which arguably cannot be classified as a commodity. The key distinction between liquid and liquid staked ATOMs is that one generates yield while the other does not, though it remains fully liquid and can be used to pay transaction fees on the network or as an on/off-ramp asset.
Let us know if you’d like a deeper exploration into this subject. As for the APRs, they were speculative estimates, and after considering your feedback, we have decided to remove them from the original post. We appreciate your insight on this point.
Govmos:validators to choose which chains they wish to secure
This can be utilized in negative way too - if validators have bias and the co-operate not to support a chain because of personal issues or whatnot with the chain developers, it will be a dead-end for that chain
Or am I missing something here? ATOM stakers are choosing which chain to delegate partial security right?
There are quite a few aspects you’re overlooking here. To mention just a few, the network consists of 180 validators, each bringing diverse perspectives, with some holding radically different visions. The odds to find censorship in such environment are arguably narrow. More significantly, with the introduction of Permissionless ICS, which you can review in detail along with the specifications and platform designs here: [PROPOSAL #947] [VOTING] CHIPs signaling phase: Permissionless ICS Frontend. Put simply, this will enable anyone to operate as a validator (you don’t have to be inside the top #180) and participate in the global security hub.
By combining these features with a neutral, decentralized collateral like ATOM, you have a leading platform to launch with the Cosmos SDK, arguably the most widely used development toolkit in the blockchain industry today.
Govmos:arguably the most widel
Fantastic, thanks for your energy and time that goes to your work. Have a great weekend
@Govmos The possibilities for ATOM are endless, and its potential as a secure, competitive, and neutral hub is only beginning to be realized. The Cosmos Hub is truly becoming the backbone of the decentralized world, and ATOM is at the forefront of this exciting transformation.
I might be the only one who thinks this, but it seems to me that @Govmos does not clearly distinguish in its messages what comes from objective analysis and what comes from personal feeling. Am I right?