All about Mesh Security need to know
What is Mesh Security?
Currently, each chain has its own unique validator set. And every team that wants to start a new chain has to add validators by hand, which is a time-consuming process.
This issue is resolved by ICS, which allows chains to become consumers who rent security from a different chain.
Interchain Security V1 = Block Size Increase
With ICS V1, the entire Cosmoshub validator set will be able to validate a consumer chain that is onboarded by a governance proposal.
If a validator refuses to validate this consumer chain following the adoption of a proposal, it will be slashed.
Every validator, regardless of their decision, will be required to validate various networks and maintain more servers and hardware whenever a new consumer chain is onboarded via governance.
Interchain Security V2 = Sharding
This issue is resolved by ICS V2 by permitting a subset of the Cosmos Hub validator set to validate a consumer chain. V2 is more scalable than V1 and enables the Hub to integrate additional consumer chains without additional governance.
Interchain Security V3
ICS V3 makes the situation somewhat more interesting.
In addition to renting security from Cosmos Hub, a chain will be able to have its own sovereign validator set.
Multiple chains’ validators participating in consensus will boost overall security, as more value will be at stake.
Mesh Security
Finally, we arrive at Mesh Security. When this happens, a chain might serve as both a supplier and a customer. With Mesh Security, Osmosis is able to increase its commercial viability and, in turn, its economic success. Osmosis joins the Consumer Chain and gets ATOM’s protection, and it protects the Cosmos Hub as well.
The Cosmos Hub and Osmosis are very important to this improvement and to the ecosystem's growth as a whole. This pattern of bilateral security would emerge as a natural consequence of the widespread adoption of this concept, which involves building a robust, secure mesh network.
$ATOM 🔁 $OSMO 🔁 $JUNO
What is the purpose of mesh security?
- Save the cost to set up the validator set
- Boost Cosmos’s liquidity and interest from developers by encouraging them to create new applications on the platform.
- Enhance the level of security and efficiency of the chains.
Mesh Security will leverage the economic strength of $OSMO to secure the Cosmos.
How Liquidity will Define Security in the Cosmos
Utilizing the overlap between validators in the Cosmos
A basic illustration of overlap
👉75% of $OSMO Validators are running $JUNO Validators
👉72% of $JUNO Validators are running $OSMO Validators
This can be defined as “Soft Security”: an “unspoken” constraint that prevents misbehavior in chains with sharing validators.
Through Cross Staking, this notion of “Soft Security” will be codified!
What is Cross-staking?
Assume that Validator A has been validated on Osmosis and JunoNetwork. They were able to submit transactions with correlated identities. What if A behaved improperly? That would lead to cutting both chains.
And why would a validator, therefore, wish to take this risk?
1️⃣ Motivational Incentives that Produce Efficacy
2️⃣ Through the use of IBC, messages with increased staking incentives may be sent to encourage widespread adoption.
When two independent nations engage in commerce with one another, they establish economic synergy.
Simply put, the United States supplies the technological services, while China supplies the raw resources.
The result is a mutually beneficial synergy for both SOVEREIGN nations.
If every validator on Osmosis and JunoNetwork uses this model, doesn't the network risk becoming too centralized?
Actually, the ability to vote is limited, which prevents larger validators from assuming control of the blockchain.
Your voting power will decrease when the number of Delegations you have reaches its maximum, but the economic benefits to the network will increase.
How do you decide which other chains to cross-stake with?
Security in Mesh Networks: An Economic Analysis
Countries with advanced economic integration typically have advanced security integration as well. If this is the Interchain, how do we make this happen?
Example: Osmosis and Mars Protocol, two interdependent economic entities, are developing a leveraged trading product together, with mutual advantage (Liquidity, Lending).
Mesh Security is useful in economically interdependent ecosystems. As with the economic links between blockchains, the security relationships will be reciprocal. Last but not least, liquidity will be Cosmos’s security standard.
Timeline
Beginning in Q1 2023, Interchain Security will be available on Cosmos. In its most basic form, it will enable a validator set to provide plug-and-play security for consumer chains that do not want the responsibilities of hiring and managing their own validators, acting as a security software development kit. This has the disadvantage of sacrificing app flexibility and control to an external validator set. Notably, Interchain Security v1 was appealing to Circle, which would release native USDC into the interchain from a Hub-secured asset-issuance chain beginning in the first quarter of 2023.
Summary
When it comes to the evolution of Interchain Security (ICS), Mesh Security is crucial. Investors who participate in staking on chains like Cosmos, Osmosis, Juno, and Evmos make a positive impact on the network’s overall security while also generating a steady stream of passive income. Investments should be made in projects that users fully comprehend, with adequate funds being allocated for those projects.
🚀 Support and stake with Beehive at Osmosis 🧪 | Evmos 🚀 | Medibloc | Rizon | Juno | Maro | Orbs ⭐️
