On March 7, 2023, Cosmos Hub governance passed a proposal to activate Replicated Security, which allows other Cosmos-based blockchains(named Consumer Chains) to utilize Cosmos Hub security by getting their transactions validated by its validators. Let's first remember the foundation to get more insight into this new implementation.
Cosmos is a blockchain network that aims to address the interoperability challenges faced by the current blockchain ecosystem by enabling different blockchain networks to communicate and transact with each other, creating an interconnected and interoperable blockchain ecosystem.
In terms of architecture, Cosmos uses a modular approach, allowing for the creation of independent, customizable blockchains called "zones." These zones can be connected to the Cosmos Hub, which serves as a central hub for Inter-Blockchain Communication (IBC). This architecture enables faster transaction processing and improved scalability, as each zone can operate independently and in parallel without relying on the Cosmos Hub for every transaction.
Compared to Ethereum, Cosmos provides a more flexible and scalable approach to blockchain development. Ethereum relies on a single blockchain with limited throughput capacity, which has led to issues with transaction congestion and high fees (before rollups). On the other hand, Cosmos allows for the creation of multiple, independent blockchains that can process transactions in parallel, increasing scalability and reducing transaction costs. Cosmos SDK, one of the most popular libraries for building a blockchain, is utilized by many teams, including exchanges like Binance and Crypto.com.
So, what is Replicated Security? It is a shared security model that allows the Consumer Chains to lease security from the Cosmos Hub, provided through Inter-Blockchain Communication (IBC). At the writing date of this article, Cosmos Hub blockchain is secured by $2.2 billion, which means this amount of ATOM is staked to the network validators. The Cosmos Hub will be able to offer this security to new projects launching as Hub-secured Consumer Chains.
This requires the entire Cosmos Hub Validator Set to validate a Consumer Chain, effectively replicating the Validator Set on the Consumer Chain and providing security. To use this service, the Consumer Chain shares revenue with the Cosmos Hub validators and delegators. Also, the protocol design of Replicated Security currently assumes that Consumer Chains are audited before they are approved for leasing the Cosmos Hub’s security. If you want to get more technical with the implementation, the proposal's details can be found here.
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