Interchain Security and Liquid Staking in Cosmos Hub

Are you tired of all these fancy blockchain terms that make your head spin?

First, Interchain Security (ICS). This is a game-changer for smaller chains that want to join the Cosmos Hub party but don’t have enough resources or expertise to secure themselves against malicious attacks. With ICS, these smaller chains can piggyback off of the security provided by the larger and more established Cosmos Hub chain.

Here’s how it works: let’s say you’re a small-time blockchain developer who wants to create your own app chain but don’t have enough resources or expertise to secure yourself against malicious attacks. Instead of building your own security system, you can join the Cosmos Hub ecosystem and use ICS to piggyback off its security. This means that if someone tries to attack your small-time blockchain, they would also be attacking the larger and more established Cosmos Hub chain, which is much less likely to happen due to its size and resources.

Now Liquid Staking (LS). If you’re a staker in the Cosmos Hub ecosystem, you know that your staked assets are not able to be used for anything else while they’re being held as collateral. This can be frustrating if you want to use those assets for other purposes or send them across different chains within the Cosmos Hub ecosystem.

LS changes all of that by allowing users to use their staked collateral as a liquid token that can be traded with and sent across other Cosmos chains. This means that your staked $ATOM, for example, can now be used for things like trading on decentralized exchanges or sending funds between different app chains within the Cosmos Hub ecosystem without having to unstake them first.

Interchain Security and Liquid Staking are two buzzwords that might sound complicated at first but really aren’t once you break them down. They’re both exciting developments for the Cosmos Hub ecosystem, and we can’t wait to see how they will change the game in the world of blockchain technology!

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