Cosmos (ATOM), one of the top 30 cryptocurrencies in the world has announced a new move to enable cross-chain communication across different blockchain platforms to rapidly enable more Decentralized Finance (DeFi) applications and transactions through its decentralized network.
As the world moves forward with DeFi, the issue of interoperability remains a big challenge to overcome as new tokens including Non Fungible Tokens (NFTs) are being released on different platforms. In order for NFTs and other core DeFi technologies to become successful, cross-chain solutions are going to be necessary.
The other major achievement regarding the development was the voting mechanism adopted by the network for the necessary changes. The platform approved the upgrade through an equitable voting system by which the community decides the future course of action. The upgrade itself received 112 million votes in favour while around 75 million voted against it. Cosmos claims that the upgrade was a long-term objective for the network and took more than 5 years to plan and deploy.
According to a tweet from the official network Twitter handle:
Today @Cosmos has enabled Inter-Blockchain Communication (#IBC) transfers on the Cosmos Hub, making it possible for sovereign blockchains to transfer digital assets (tokens) and data b/w one another.
The Interchain era has begun https://t.co/3vybbrLJ5G
Thread pic.twitter.com/7NRgqHiTBe
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) March 29, 2021
Cosmos is also moving forward with the launch of its new decentralized exchange for trading cross-chain digital assets. The new place called Gravity DEX and is apparently following the footsteps of more successful exchange projects like Uniswap (SWAP). The exchange will also make use of new tech called Sharding for side-chain usage and applications.
Cosmos like other decentralized cryptocurrency projects is now pivoting heavily to DeFi and decentralized exchange side of things. There is intense competition in the market to become the industry standard for a decentralized exchange with more established networks like Uniswap making huge inroads into the market. The network’s native ATOM cryptocurrency had a mixed performance in recent times with seasonal bursts of bull runs but it is currently sitting on No. 21 in the charts despite being among the top 10 just a couple of months back.
The new upgrade may re-ignite the interest in the ATOM token, but, the altcoin market is extremely volatile right now and therefore, investors are advised to take great caution in investing there, especially through day trading.
Image source: wallpaperuse.com under CC
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