In the upcoming months, Cosmos will roll out a brand-new function called interchain security. Certain application-specific chains can use the Cosmos Hub to secure themselves thanks to interchain security.
Cosmos, a blockchain ecosystem with over 200 blockchains, allows developers to create new application-specific chains if they can manage their own validators. However, creating a validator set from scratch takes a significant amount of effort and resources. This is where interchain security enters the picture. Instead of establishing independent validators, the feature will allow new Cosmos-enabled blockchains to rely on Cosmos Hub’s security validators. This also implies that these blockchains will transfer fees to those validators, offering further incentives to ATOM stakeholders.
Cosmos will imitate the design of another interoperability network, Polkadot, by launching interchain security. In addition, crypto derivatives platform dYdX, which is presently built on Ethereum layer 2, said that for its v4 release, it will transition to a separate blockchain based on the Cosmos SDK and Tendermint proof-of-stake consensus. The decentralization and performance of the Cosmos blockchain make it a “best fit” for constructing dYdX for v4. The Cosmos(ATOM) price has recently made a significant recovery. Let’s take a look at the ATOM price
ATOM Price Prediction
The ATOM price is currently around $7.66, which is its highest level since June 12th. From its lowest point, $5.54, it has increased by more than 40%. The price of Cosmos has just made a fantastic comeback, as seen on the four-hour chart, but it was rejected at a significant resistance level at $8.60.
Even though Cosmos’ long-term trend is bearish, there is a chance that the it will continue to rise in the short future. If this occurs, $8.60 and $10.78 will be the next significant resistance levels to keep an eye on. If the ATOM price drops below the $6.30 support level, the bullish outlook will be rendered invalid.
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