What is Replicated Security?
A look at the Cosmos Hub’s new security technology
The Cosmos Hub is a vibrant and innovative blockchain that serves as the central hub of the Cosmos ecosystem. It is also the first blockchain to be built within the Cosmos ecosystem, which is now home to over 50 sovereign and natively interconnected blockchains. The Cosmos Hub is a Proof-of-Stake (PoS) blockchain and its network is powered and governed by its native cryptocurrency: ATOM.
Concept
Within Cosmos, Interchain Security is a broad stroke to describe a set of “shared security” protocols. And with Interchain Security, a Provider chain like the Cosmos Hub for example, will be able to lease its security to a Consumer chain. Simply put, the sharing of validators through Replicated Security would allow the Consumer chain to inherit the entire security of the Provider chain.
With Replicated Security, teams on application-specific blockchains can utilize the Cosmos Hub’s validator set and ATOM staking to secure their own networks while preserving the ability to build on their own blockchains. In addition, validators and delegators on the Cosmos Hub can benefit from earning rewards for their contributions in securing these other blockchains.
How does Replicated Security Work?
The Cosmos Hub runs on the PoS consensus mechanism, in which validators validate transactions, propose new blocks, and earn rewards for their work in helping to secure the network. Validators can also be penalized by getting a portion of their stake slashed if they misbehave. Architecturally, Cosmos is structured around Hubs and Zones. A Zone is an independent blockchain, while a Hub is a specialized blockchain that facilitates the interconnection of all the Zones.
Through Replicated Security, the Cosmos Hub assumes the role of a Provider chain by providing its security to each Zone that seeks to inherit the Hub’s security. Zones that do so will then assume the role of the Consumer chain. Replicated Security is enabled through the Inter-Blockchain Communication (IBC) protocol through which packets are regularly relayed from the Provider chain to Consumer chains.
Benefits and Limitations
From a security perspective, Replicated Security enables the Cosmos Hub community to introduce new features through Consumer chains without jeopardizing the security of the Hub. This flexibility allows the Cosmos Hub to evolve while adhering to the principles of Practical Hub Minimalism — a design philosophy that ensures the Hub can expand its capabilities without adding unnecessary complexity or risk to the core functionalities of the Hub itself.
In terms of tokenomics, one of the significant challenges faced by Cosmos’s native token is its lack of utility. Replicated security would underscore ATOM as the main unit of account within the Cosmos ecosystem. ATOM is anticipated to function as the gas token for networks on Replicated Security and seamlessly integrate with the DeFi ecosystems of Consumer chains; and ATOM can even serve as the reserve asset within Cosmos treasuries.
While Replicated Security marks another milestone achievement for Cosmos, this new technology is not free from limitations.
- Validators that are participating in Replicated Security on the Provider chain are expected to have their nodes up and running on the Consumer chain. This inadvertently creates a limitation — economically, for the number of chains a validator can secure.
- Revenue generated by most Consumer chains starts at a low level and only increases with adoption and usage; and validators may only start earning revenue from the Consumer chain if adoption and usage reaches a certain threshold.
- On the Cosmos Hub, the distribution of validators’ staked collateral is asymmetrical, and PoS blockchains reward validators based on the amount of staked collateral they have. This further compounds the challenges that validators participating in Replicated Security face, as validators that have a higher stake could potentially receive significant rewards while validators with a lower stake may encounter financial difficulties.
In Closing
For Replicated Security to surpass its limitations, various solutions can be explored to enhance the technology.
Replicated Security is a groundbreaking feature within the Cosmos ecosystem that allows the Cosmos Hub to share its security with other connected blockchains. By leveraging the Cosmos Hub’s validator set, application-specific blockchains have a lower barrier to entry and they can secure their networks while focusing on their unique requirements. This innovation brings numerous benefits, including additional rewards for stakeholders on the Cosmos Hub, a strengthened network effect, and the ability to introduce new features without compromising security.
As it stands, five Consumer chains have already committed to launching with Replicated Security, with Neutron being the first to implement it at the time of writing.
Despite some of its limitations, Replicated security demonstrates the Cosmos Hub’s commitment to building a secure and efficient internet of blockchains. With Replicated Security, the Cosmos ecosystem can continue to create more economic opportunities, evolve and innovate in both an exponential and sustainable way, while maintaining a strong foundation of security and utility for all stakeholders.
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Co-Writer Info
Le Thang has been in Cosmos for over 2 years and is currently working as head of research of Cryptocito. He also likes to write about what he’s learned on his crypto journey, focusing mainly on the Cosmos tech stack and a bit of the Ethereum ecosystem.
