The Onomy DAO recently declared its position as the second security provider within the expansive Cosmos ecosystem, a notable advancement following the introduction of its Onomy Exchange consumer chain. The decision to launch the Onomy Exchange consumer chain on the mainnet was passed with a significant majority, where 88.7% of participating members backed the initiative, representing 85.1% of the voting power held by stakers of NOM, Onomy’s native token.
In a pivotal development during 2023, the Cosmos Hub implemented a protocol upgrade known as Interchain Security, revolutionizing how app-chains deploy within its ecosystem. Before this upgrade, creating an app chain required using the Cosmos SDK—a comprehensive toolkit for blockchain development—and then attracting validators to ensure the network’s security and decentralization. This process, although beneficial for developers keen on leveraging application-specific blockchains, often proved cumbersome for new and resource-limited teams.
The Cosmos Hub DAO received the proposal with enthusiasm, quickly green-lighting the initiative, which paved the way for the launch of the first independent consumer chains that utilize the shared security framework provided by the Cosmos validator set.
Onomy positions itself as a foundational layer-1 ecosystem, driving the next generation of consumer applications and establishing itself as a core component of what it terms the Internet’s Financial System. The products it aims to develop are designed to enhance adoption, improve on-chain trading, streamline asset management, and maintain compatibility with the broader IFS ecosystem.
Following extensive testing and development, including multiple testnets, the Onomy DAO endorsed an upgrade that enabled the Onomy Network to support Interchain Security. This upgrade was critical for launching its pioneering consumer chain, the Onomy Exchange (ONEX), a first-of-its-kind hybrid AMM + order book DEX, offering sophisticated trading functionalities akin to conventional centralized exchanges (CEXs) but executed on-chain.
The DAO’s unanimous agreement on the adoption of Interchain Security indicates a robust consensus on its benefits not just for Onomy’s consumer chains but also for prospective sovereign chains aspiring to join the Onomy Ecosystem. With such endorsement, Onomy joins the Cosmos Hub as one of only two security providers among 100+ interconnected networks via IBC.
Strategic Partnerships and Support
Paolo Ardoino, CTO of Bitfinex & Tether, remarked on the significant potential of Onomy’s offerings within the Cosmos ecosystem. The Onomy Validator Set, which includes leading entities such as Cosmostation, Ledger, Citadel One, and Chorus One, alongside newer additions like Strangelove, Stakecito, and Decentrio, has committed to bolstering Onomy’s strategic expansion into Replicated Security. These partners are set to provide essential technical support, develop interchain tests, and assist in the ongoing development and maintenance efforts.
Interchain Security enables consumer blockchains to lease security services from a provider chain, with transaction blocks produced by the provider’s validators. This arrangement is subject to the DAO’s approval, akin to a service agreement where $NOM holders agree on specific terms, with $NOM stakers due to receive protocol revenue from all Onomy-secured blockchains. This flexibility is intended to unify and streamline various app chains focused on Forex, real-world assets, and payments under a single, strategically aligned ecosystem.
The new security framework not only facilitates increased building on the Onomy ecosystem but also attracts new participants and app-chains, thereby diversifying and enriching the ecosystem..
Furthermore, the increased security and associated staking rewards and fees are expected to incentivize more validators to join Onomy, thereby expanding the community and fostering greater collaboration within the network. Lalo Bazzi, founder of Onomy, encapsulates this vision by noting that “Consumer chains aren’t just passengers—they’re sailors who can help steer ships towards major ecosystem growth.”
Onomy’s Role in the Future of Finance
Onomy Protocol continues to evolve as a significant player in facilitating the Internet Financial System, melding DeFi capabilities with diverse consumer applications spanning the $6.6T daily Forex market, real-world assets, and payments, thereby promising to be a dynamic hub for the next wave of consumer applications within the Cosmos and beyond.
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- Source: https://www.crypto-news.net/onomy-launches-consumer-chain-cosmos/
