The Cosmos blockchain deployed a long-awaited upgrade called Theta last week. The move aims to increase interoperability between different blockchain networks.
The Cosmos Theta upgrade quietly went live on April 13th, marking the official launch of Interchain Accounts. This is a module that has the potential to boost interoperability, traffic, and composability on the network.
Cosmos Theta Upgrade Launches Interchain Accounts
Cosmos uses Inter-Blockchain Communication (IBC) which enables network participants to share tokens between accounts on different chains. However, the Theta upgrade includes the ability to interact with other accounts.
Consequently, it is similar to how Ethereum users can interact with smart contracts in other ecosystems. Messari researcher, Youssef Amrani, delivered the details:
1/Today, The @Cosmos Theta upgrade quietly went live. The upgrade marks the official launch of Interchain Accounts, a module that has the potential to drastically boost interoperability, traffic and composability on the internet of blockchains. A thread
— Youssef Amrani (@youssef_amrani) April 12, 2022
Moreover, Interchain Accounts will reinforce the position of Cosmos as the “internet of blockchains.” Furthermore, the technology will grant blockchains the ability to provide their functionality as an application programming interface (API). This can be custom-coded and executed by another chain. Amrani simplified the description of Interchain Accounts: “You can see it as an additional IBC layer that liberates more opportunities.”
Therefore, it essentially enables developers to leverage existing functionality regardless of the network on which it exists. Additionally, Interchain Accounts provide a more seamless user experience with less friction for moving between blockchain ecosystems.
Moreover, Armani used an example of using the Cosmos Osmosis Zone to move UST to the Anchor Protocol to earn a yield. There will be far fewer steps using Interchain Accounts than manually moving in and out of different wallets. There are five main benefits of this upgrade:
- Streamlined user experience on the Cosmos ecosystem.
- Unlocking of new Interchain services and business models.
- Increased composability between networks.
- Increased cross-chain activity.
- The ability for a chain to write a state on another blockchain.
🔊 Cosmos Hub Theta upgrade ✅
Congratulations to the Cosmos developers and validators for a successful and smooth upgrade which brings:
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) April 12, 2022
Additionally, the next Cosmos upgrade called Rho is expected in Q2 2022. It will enable Liquid Staking which allows users to continue transacting with their staked ATOM rather than having it locked up.
ATOM Price Outlook
The native token for the Cosmos Hub, ATOM, has taken a 5.9% hit on the day. As a result, it was trading at $22.69 at the time of writing this article. The token has taken heavy losses over the past few weeks, dropping 29% over the past fortnight. Furthermore, ATOM is down 49% from its January all-time high of $44.45.
Also, its marketcap is currently at $6.6 billion with a 24-hour trading volume of $364 million.
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