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Interchain Security is Coming to the Cosmos Hub



Billy Rennekamp

One of the features that make blockchain technology so appealing is its high degree of security and resistance to attack. In a Proof-of-Work (PoW) network, blockchains are secured by miners that lend hashing power to the network. The higher the hash rate, the more difficult for a bad actor to carry out an attack. The Bitcoin network is now widely considered large enough to deter would-be attackers, however, smaller chains with lower hash rates are often vulnerable to malicious attacks.

The same is true with Proof-of-Stake (PoS) networks, in which validators (not miners) secure the network by staking cryptocurrency and validating new blocks based on how much of the cryptocurrency they own (their ‘stake’). The more value staked in a network, the more secure the network. For smaller and emerging chains, the relatively low amount of resources to carry out an attack can make their networks vulnerable. To circumvent this problem, larger chains can share security by lending their cryptocurrency capital to validate blocks on the smaller chain. In the Cosmos network, this shared security is known as Interchain Security.

While existing shared security architectures have opted for top-down designs, Cosmos continues to build from the bottom-up. It’s not that we don’t admire a grand cathedral, we just can’t imagine living anywhere but the Bazaar. Cosmos subscribes to the notion that sovereignty and interoperability are the two key ingredients for building an open ecosystem of blockchains that can scale for mass adoption.

While the Cosmos Hub is not required for an Internet of Blockchains, the purpose of the Cosmos Hub is to make using the Internet of Blockchains better in every way. Not only that the Hub will compete to provide the best service. For a detailed description of how the Cosmos Hub is doing this, take a look at “The Cosmos Hub is a Port City”.

By allowing anyone to participate in the Internet of Blockchains, Cosmos is like the Bazaar model. There may be fewer guarantees about orderliness or consistency but this design allows for faster and more diverse ideation and development to take place. It’s this difference in design and ideology that has caused an explosion of Cosmos-based blockchains with a diverse set of features and stakeholders.

Interchain Security has been referred to by many different terms: Shared Security, Cross Chain Validation, Cross Chain Collateralization, Shared Staking, and Interchain Staking. For the sake of simplicity, let’s restrict the use to the following three terms:

Shared Security
Shared security is a family of technologies that include optimistic rollups, zk-rollups, sharding, and Interchain Security.

Interchain Security
Interchain Security is the Cosmos-specific category of Shared Security that uses IBC (Inter-Blockchain Communication).

Cross Chain Validation
Cross Chain Validation is the specific IBC-level protocol that enables Interchain Security.

At a very high level, Interchain Security allows for a parent chain (like the Cosmos Hub), to be in charge of producing blocks for a child chain. It does this by sharing the set of validators who are in charge of producing blocks. The participating validators would run two nodes, one for the Cosmos Hub and one for the child chain, and receive fees and rewards on both chains.

In order to be eligible to produce blocks on the child chain, the validator would use the ATOM tokens they’ve staked on the Cosmos Hub. If the validator does a bad job producing blocks on either chain, they risk having their ATOM tokens destroyed by a mechanism called “slashing”. The child chain uses IBC to communicate with the parent chain to keep track of which validators are participating in Interchain Security using Cross Chain Validation. In this way, the security gained from the value of the stake locked on the parent chain is shared with the child chain.

There are two primary reasons that Interchain Security is valuable to the Cosmos Hub. The first reason is because it allows for “hub minimalism” and the second is to lower the barrier to launching and running secure sovereign decentralized public blockchains. Let’s take a closer look.

Practical Hub Minimalism is the strategic philosophy that the Cosmos Hub should have as few features as possible in order to decrease the surface area for security vulnerabilities and to reduce the chance of a conflict of interest between user groups. A hub minimalist might be against a name-service module being on the same blockchain as a DEX protocol, for example, since users of the name-service module must now accommodate users of the DEX even when they have different interests. At best, divergent user groups can peacefully coexist and, at worst, differences may result in hard forks that diverge in the features of an application.

The current Cosmos Hub is adding more features, which carries some of the risks that hub minimalism is concerned with. Should Interchain Security become available, it would be possible to satisfy hub minimalists by allowing for each distinct feature of the Cosmos Hub to be an independent chain that is validated by the same set of ATOM-delegated validators. This way, the operation of each function could occur independently without affecting the operation of other ATOM-secured hub-specific applications. These separate child-chains may even want to have their own token for governance, fees or other application specific uses that could furthermore be used to pay parent-chain validators for their services.

The security of a network is often described as a function of the cost of attacking that network. In Tendermint consensus, we target ⅓ and ⅔ of locked stake for various guarantees about liveness and correctness. This means that, in order to do any of a variety of attacks against the network, you would need to acquire ⅓+ or ⅔+ of all staked tokens. The crude way to calculate the cost of an attack is to take the quantity of tokens needed to achieve these proportions and multiply it by the current market price for that token. We’ll call this the Cost of Corruption.

The Cost of Corruption calculation doesn’t account for the availability of any specific token but it does give a very rough estimate for how secure a chain is. It’s important that the total value locked (TVL) on a chain remains less than the Cost of Corruption, otherwise the chain should be considered insecure.

Since the ability of a chain to serve a valuable purpose is often dependent on the TVL it can handle, it’s important to find ways to increase the Cost of Corruption for chains in the Cosmos ecosystem. Take Osmosis for example: at today’s prices (Aug 18, 2021) the market cap of the network is ~$330MM while the TVL is ~$145MM. Theoretically someone could buy ⅔ of the total supply of Osmo for ~$220MM and steal the ~$145MM locked up. Of course this wouldn’t be worth the effort, but should the ratio become more skewed this might in fact be an attractive target for attack.

Interchain Security allows the Cosmos Hub to assign the value of the Cosmos ATOM to the Cost of Corruption for any chain. At today’s price of ATOM (Aug 18, 2021), this would increase the Cost of Corruption by up to ~$3.5 Billion. Eventually this technology could be shared across a number of networks in multiple directions further compounding the total Cost of Corruption for any child chain.

Cosmos SDK chains that have already launched mostly already have staking tokens. Similar to Osmosis, these chains may already have a relatively safe ratio between TVL and market cap. Rather than replace their own staking token for the parent’s, they can be combined in what is called Layered Security. Layered Security, or Interchain Security v2, would allow the combination of a local child-chain staking token with the Cosmos Hub ATOM parent chain staking token to determine the composition of the validator set of the child chain. You would have the full weight of the child-chain market cap with an additional layer of the parent chain’s market cap.

The relationship could be imagined to be extended even further. One day you may have lateral shared security agreements between large networks going both directions. Cosmos Hub may share ATOM value with any of the other Cosmos SDK projects’s validator set and the other way around. At that point it looks more like mutual security insurance across sovereign networks, but let’s not get ahead of ourselves. Interchain Security v1 uses the full validator set of the Cosmos Hub and will be coming to life over the next year.

While the roadmap for Interchain Security is ambitious it points to an even more exciting future. Warp ahead to a future where Interchain Security is prevalent across zones. Assuming these zones meet a threshold of common validators it’s possible to implement a more efficient form of consensus. This is a version of the famous protocol that collapses multiple nodes into a single validator instance. In this collapsed and coordinated multi-chain consensus a fantastic new property becomes possible: synchronous cross chain communication. This cutting edge work has recently been published by members of the Informal team who are heading the research and spec development of this exciting feature.

Development of Interchain Security is currently focused on Cross Chain Validation, the IBC application-level logic required to enable Interchain Security. There is currently a draft of the Cross Chain Validation spec on the Informal Systems GitHub repository that is already being prepared for model-based testing and formal verification. The implementation is taking place within the cross-chain-validation branch of the ibc-go repository. For more details about the rest of the Interchain Security stack, take a look at the Interchain Security light paper.

Interchain Security allows Cosmos to stay true to its philosophy of sovereignty and open source (like the Bazaar model) and enables blockchains to integrate economically but not politically. It’s an ambitious project but development is well underway, with early estimates that this groundbreaking feature could be coming to Cosmos Hub testnets as early as Q4 2021.

If you’re interested in contributing to the progress of Cosmos Shared Security, take a look at the open positions at Interchain for the IBC team and the Cosmos Hub teams and the open positions at Informal Systems for the go engineer and research roles. To follow the progress, make sure you subscribe to our engineering newsletter. If you’re interested in being a user of Interchain Staking, fill out our enterprise support form. For all other Cosmos-related news, follow the Cosmos Blog and our @cosmos twitter feed.

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People’s payment attitude: Why cash Remains the most Common Means of Payment & How Technology and Crypto have more Advantages as a Means of payment




Consumer payment attitudes examine how they utilize cash and non-cash payment methods across the world. Payments made in cash are still the most frequent however people have started exchanging Bitcoin for cash in transactions. While individuals tend to adjust to their present circumstances. During the pandemic, for example, customers had to change their behaviors. Consumers have grown to be much more digitally savvy and environmentally conscious than they were before.

Is cash, however, really obsolete? Is the public ready to accept digital payments as the norm, or will paper money and coins continue to play a significant role in our daily lives? Cash payments, in our opinion, will always be king. Having cash will not make you run around for instance if you have to exchange bitcoin for cash if you must perform that transaction in cash.

Continue reading to learn about the benefits of cryptocurrency and why it’s inferior to cryptocurrencies.

Advantages of Cash Payments

  1. Generally accepted

When making minor transactions, businesses in nations like the United States would gladly accept cash instead of other means of payment.

  1. It comes in handy in moments of emergency

In cases of emergencies, cash will come in very handy. For example, if you’re traveling, you’ll need money, particularly if you’re going overseas. Apart from the fact that cards aren’t accepted everywhere, you run the risk of being mugged, having your debit card eaten by an ATM, and having other mishaps happen to you. A little bit of cold, hard cash will get you out of virtually any trouble. At that point looking for where to exchange bitcoin for cash will be extremely difficult.

  1. Your transactions are kept confidential

Cash is preferred by thieves because it is difficult to track. However, some law-abiding individuals who cherish their privacy prefer cash payments because of the anonymity they provide. As an added security measure, credit card issuers and retailers are required by law to share customer purchase data with other parties, including marketers.

Benefits of Cryptocurrency

1.      Transactions

Using cryptocurrencies as a medium of exchange has the benefit of eliminating the need for a middleman, for example, if you want to exchange bitcoin for cash take place on a peer-to-peer networking framework. As a result, audit trails are easier to create, people are less confused about who should pay what to whom, and transactions are more transparent since both parties know who they are.

2.      Asset Transfers

The crypto-blockchain ecosystem may be used to make specialized forms of transmission more accessible.

3.      Easier International Trade

A country’s exchange rates, interest rates, transaction fees, or other taxes do not apply to cryptocurrency transactions, even if it is widely acknowledged as legal money at this time.

International transfers and transactions may be carried out without problems due to currency exchange rate volatility and the like thanks to the peer-to-peer mechanism of blockchain technology. You can choose to exchange bitcoin for cash with someone in another country or continent.

4.      Individual Ownership

Even if you have outsourced administration of your cryptocurrency wallet to a third-party provider, you remain the only owner of your private and public encryption keys, which make up your crypto network address. Whenever you wish to exchange bitcoin for cashor any other crypto, you will be solely in charge.

5.      Strong Security

As with “charge-back” transactions permitted by credit card issuers, once a crypto transfer has been approved, it cannot be revoked. To protect against fraud, buyers and sellers must agree in advance on refund policies in the case of a mistake or return policy.

The last defense against fraud and account manipulation is the use of strong encryption methods across the blockchain and cryptocurrency transaction processes. These techniques also guarantee customer privacy.

  1. Payments made using Bitcoin may be made on the go.

Using crypto as a payment method requires just anybody with an Internet connection. In other words, customers may buy products without going to a bank or a shop by simply exchanging their Bitcoin for cash if the seller allows cryptocurrency transactions. Personal information is not required to complete any purchase, in contrast to online payments made using a U.S. bank account or credit card.


There are still obstacles in the way of a cashless society. Take the fact that millions of people still depend significantly on cash. Eliminating it may cause difficulties. Underprivileged, handicapped, and elderly individuals are particularly at risk. These people may be more vulnerable to financial exploitation, social isolation, and debt if their nation makes the switch to a cashless society too fast. It will be very hard for these sets of people to exchange bitcoin for cash because of different barriers.

People who are most at risk of being left behind by technological advancements must be included in attempts to make society genuinely cashless. How will you expect them to exchange bitcoin for cash? They will be completely left out.

Source: Plato Data Intelligence

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The Most Profitable Cryptocurrencies on the Market



Cryptocurrencies have recorded massive expansion in 2021. There’s no denying the fact that his year will definitely go into history books as one of the most ‘fruitful’ for these digital assets. The number of crypto traders has increased massively and currently, there are millions of people who are trading or are in possession of cryptocurrencies.

If you are thinking of joining the trading movement, you need to understand the fact that the crypto market is extremely volatile and everyday events can have massive impacts on their price. With that being said, we wanted to devote a bit of time to new traders who are looking to invest and make money off cryptocurrencies by naming the most profitable cryptocurrencies on the market today.

Binance Coin

Binance Coin is a digital asset that is often overlooked; however, it has massive value. Its current value is around $500, which is a solid price, but here’s where it gets better. As you may have concluded by now, this cryptocurrency is native to one of the world’s most reputable exchange platforms – Binance.

Now, you may think, there are a handful of other cryptocurrencies that have a higher value than Binance Coin, but here’s why you should consider trading with Binance Coin, especially if you have registered an account at Binance. The transactions with this cryptocurrency are far safer and faster on the platform, but what’s most important – the fees are much lower.


Next up, we have a cryptocurrency that many refer to as Ethereum. Before we unveil its price, let us give you a quick lesson. Ethereum is the name of the decentralized network in which the cryptocurrency named Ether can be traded. So, what you are looking for is Ether.

By market capitalization, Ethereum is the second-largest cryptocurrency in the world, falling behind Bitcoin. The reason why you should consider trading with Ether is that the open-source blockchain (Ethereum) focuses on this cryptocurrency and it can provide you with access to many other cryptocurrencies and NFTs, which proved to be a massive success in 2021.

Currently, Ether is at its highest value in history as it has a price of around $3,800.


Finally, we have the cryptocurrency that started the whole movement – Bitcoin. Bitcoin was established in late 2008 and gained massive recognition in 2014. After reaching an all-time high at the time in 2017, it dropped in a matter of few months and no one believed that it can reach a second peak.

Not only did it manage to do that, but 2021 resulted in 2 spikes of its value. In April, Bitcoin peaked at over $60,000 and then, it dipped. However, after numerous experts indicated that Bitcoin will catch a second wind in 2021, many investors decided to put their money on the line and they didn’t do wrong.

Currently, Bitcoin’s value is over $62,000 and what’s better, is the fact that experts are convinced that it has the potential to rise to $100,000 by the end of the year. At the moment it’s one of the most wide spread cryptocurrencies in the world. Many industries have to deal with Bitcoin. Banking, retail, gambling. Online casinos receive bets made with cryptocurrency and allow withdraw winnings to Bitcoin wallet. You would be surprised how many gambling platforms accept crypto. To learn more about it visit our partners site Exycasinos.

Source: Plato Data Intelligence

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What Is the Best Crypto IRA for Me? Use These 6 Pieces of Criteria to Find Out More



Are you considering investing in cryptocurrency? The cryptocurrency industry holds massive future potential, which is why it has attracted millions of investors in recent years. In fact, most cryptocurrencies in the top 10 have gained investors 1000% or more returns in the last few years.

That said, investing in crypto can often be expensive and cumbersome, which is why you need a crypto IRA.

Basically, a crypto IRA is a special kind of individual retirement account that allows you to invest in cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Stellar Lumens. A crypto IRA saves you big time on taxes and diversifies your portfolio.

Now, there are different crypto IRAs in the market. So, choosing the best one can be confusing. If you want to find the best crypto IRA here are six factors to look for:

1. The Charges Involved

When comparing different crypto IRAs, you want to first look at the fees.

Fees are not quite standard, and different custodians charge varying prices. You want to be sure you understand the various costs you’ll pay for holding an account with a particular provider.

Most companies usually charge a fixed amount for account setup, an annual maintenance fee, and a small commission on any trades you make.

Remember, not all providers state their prices upfront, and you may need to contact them for fee disclosures.

2. How Accessible the Crypto IRA Is

You also want to go with a crypto IRA that’s available in your country or state. Some providers may not operate in some areas, and it’s good that you have this information up front to help you narrow down on who to go with.

While at it, you can also test out the customer service to make sure that it’s not only available but reliable too, in case you need help along the way.

3. Ease of Use

The crypto IRA platform should be at least easy to understand and navigate. Essential features such as account funding and buying or selling options should be easy to locate even for beginners. A complicated account can make investing a real headache.

4. Variety of Cryptocurrencies

The number of cryptos you can invest in will vary from one crypto IRA to another. So, depending on what you’re working with, go for an account that allows different cryptocurrencies. The idea is not to go for something that limits you so much as you may want to diversify your portfolio with various cryptos later.

5. Funding Options

You’ll, of course, need to load fiat money into your account to buy cryptocurrency. So, check that the account you’re considering offers favorable funding methods. The best crypto IRAs allow you to connect to your credit or debit card to transfer money directly.

6. How Security Is It

With cybercrime getting more advanced, you want to ensure your crypto investment is safe from online attacks. So, look into the security measures that a provider uses before making any commitments.

Notable security measures in crypto include data encryption and two-factor authentication.

Looking for the Best Crypto IRA? Make Sure It Meets All the Above Factors

Finding the best cryptocurrency IRA is very easy if you know what to look for. The best crypto IRA providers will definitely match all six criteria listed in this article so consider these pointers and remember to take your time selecting a crypto IRA you’re comfortable with.

Source: Plato Data Intelligence

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What does swapping crypto mean?



Has the number of cryptocurrencies ever piqued your interest? Are we talking about a couple of hundred here? Maybe a zillion people? According to CoinMarketCap, that number is now well over 7,000. With so many options, you may want to test a new cryptocurrency at some time. However, how do you go about doing it?

Good news, then! Making a switch will allow you to test out a different cryptocurrency with ease. Swapping is the process of swapping one coin for another. In other words, how does it all work?

Let’s assume you have some

Ethereum, but you’d like to have Bitcoin. Certain services are available to assist you with this. Swap service providers allow you to trade your Ethereum for Bitcoin, with a value close to the actual exchange rate. To put it simply:

Why would I want to swap?

Now you know what it means to exchange cryptocurrency. On the other hand, why on earth would you want to? Anyone’s motives for wanting to swap their crypto assets for anything else are wide open. So, without further ado, here we go.


Making money, that’s right. It’s a hit with everyone. Trading cryptocurrencies have the potential to bring you a sizable return because of how rapidly their prices can shift. You might make a lot of money by trading your crypto at the appropriate time if you are timing the market perfectly and are a little bit lucky.

Increasing your investment options by utilizing diversification

Those sudden price adjustments, on the other hand, are not to everyone’s taste. In general, diversification is seen as a valuable tool for reducing the impact of risk. Having a diverse portfolio of cryptocurrencies may help mitigate the effects of price fluctuations.

A source of ongoing revenue

Wouldn’t it be great if you could receive money for doing nothing? Staking is a method of earning additional crypto without having to do any work on your part. You might try this out by exchanging some of your bitcoin for fiat currency.

But be on the lookout!

Trading cryptocurrency is inherently hazardous, even if you don’t consider security issues. Remember how we said that by timing the market right, you might make a significant profit? If you’re not careful, you might suffer losses of all sizes. Don’t invest or trade money you can’t afford to lose, and do your homework before you get involved.

Additionally, there is generally a charge associated with trading bitcoins. You should expect a somewhat lesser return on your investment.

What is 123swap?

123swap offers an ecosystem of products and services that enables consumers to swap, keep, send, receive, earn, and invest tokens across various chains in a single place of business. To remove difficulties such as complex interface, hidden fees, and a time-consuming registration procedure, the platform has designed its conversion method to simplify the process for the end-user.

Why 123swap?

Users can pick from among more than 500 cross-chain liquidity pools (Ethereum, Binance, Polkadot, and many more). In addition to supporting the most popular protocols, the platform also offers the lowest costs and the highest annual percentage yield (APY) (Annual Percentage Yield).

123swap will differentiate apart from other DeFi platforms thanks to the following features:

In the Smart Economy, 123swap is a prominent crypto swap protocol that enables users to – Swap favoured assets in several chains; hold them; send them; receive them; earn from them; and invest in them. In this approach, crypto assets may be exchanged between peers without the need to put their faith in a third-party custodian or counterparty. The platform offers non-custodial services and aims to provide optimum safety, ease, and comfort for its users. Customers may browse all of the swaps offers gathered from the most important crypto exchanges in one location.

The platform’s goal is to develop a stronghold community. Members of the community will be able to make essential choices on things like team tokens vs. advisory tokens, lock length, and so on through a fair voting mechanism.

Problems solved by 123swap

Exchanges performed by hand are old-fashioned and time-consuming. By utilizing smart contracts, the platform will streamline and automate the swapping process. Smart and autonomous financial management will be available in one location thanks to the cross-chain smart contracts. The platform would promote decentralized financial management via smart contracts. As a result of its technological innovations, 123swap is poised to surpass the competition, improve speed, and establish itself as the world’s leading exchange.

Final Thoughts

Swapping is the process of swapping one coin for another. Certain services are available to assist you with this. You might make a lot of money by trading your crypto at the appropriate time. If you’re not careful, however, you might suffer losses of all sizes. 123swap is poised to surpass the competition, improve speed, and establish itself as the world’s leading exchange.

The platform would promote decentralized financial management via smart contracts. Users can choose from among more than 500 cross-chain liquidity pools (Ethereum, Binance, Polkadot, and many more).

Source: Plato Data Intelligence

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