Cosmos Outlook 2022: DeFi, Cross-chain NFT Market, Ethereum Compatibility Coming, Teasing Massive Airdrops

The cross-chain project Cosmos ATOM released the 2.0 roadmap in mid-December, with the development team further explaining the expected progress of the project in 2022 on their blog.

Original article: "What’s Coming to Cosmos in 2022?"

Cross-Chain Security

Cross-Chain Security, also known as "Interchain Security," is a shared security solution within Cosmos that allows validators of the Cosmos Hub to earn rewards in different tokens across multiple chains simultaneously.

By collectively responsible for block production, interchain security allows the parent chain, such as Cosmos Hub, to produce blocks for the child chain. Validators run dual nodes, one for producing blocks on the Cosmos Hub and the other for the child chain, enabling them to earn transaction fees and rewards on both chains.

Validators must stake assets on the Cosmos Hub to qualify for block production on the child chain. Failure to fulfill block production responsibilities on any chain will result in being penalized through a "Slash" mechanism.

Cross-Chain Accounts

Cosmos is expected to complete an upgrade in the first quarter of 2022. The team believes that cross-chain accounts, known as "Interchain Accounts," will have a significant impact on the ecosystem, especially in the DeFi sector. Cross-chain accounts will allow direct operations on accounts on other chains, rather than the traditional token transfer from Chain A to Chain B.

While the Inter-Blockchain Communication (IBC) protocol in Cosmos allows tokens to move between different blockchains, smart contracts on each chain cannot interact. Cross-chain accounts will change this by enabling the creation of smart contracts within specific blockchain applications, providing composability and interoperability between chains to unleash the potential of DeFi.

In summary, cross-chain accounts allow secure control of accounts on another chain through IBC. Users will be able to access specific functionalities of applications on various chains directly through cross-chain accounts, making it easier for developers to integrate with IBC.

Liquidity Staking

Liquidity Staking, initially set to launch in February, will be integrated into the Cosmos-SDK general development system. The v1 version of liquidity staking allows stakers to claim rewards while also reinvesting bonded ATOM proof into liquidity pools and other activities to maximize returns. However, the team believes this is not the most ideal mechanism.

Therefore, the liquidity staking protocol Lido previously proposed "CosmWasm," which uses Cosmos Hub as the core mechanism for liquidity staking, connecting it to various chains and managing the staking process directly through IBC. This simplifies the integration of liquidity staking without the need for individual projects to devise solutions.

Cosmos DeFi Goes Mainstream

With the upcoming features of IBC cross-chain liquidity and cross-chain accounts, the team believes that Cosmos will experience explosive growth in the DeFi sector. The front-end application Emeris is set to launch in the first quarter of 2022.

Emeris released a test version in September this year, offering features such as:

• Visualized portfolio: Providing users with an overview of assets, indicators, and data across chains.
• Digital asset management: Enabling users to transfer assets across chains, stake, and engage in cross-chain aggregate trading.
• New project discovery: Integrating potential profit opportunities, including new projects and airdrops across chains.

The EVM-compatible project Evmos is also set to launch in January 2022, making it easier for Ethereum developers to deploy smart contracts and applications on Cosmos.

NFTs Are Coming

In addition to NFT marketplaces like Stargaze, NFT creation platforms like Pylons, and music NFT marketplace BitSong, Evmos will also support an NFT custody marketplace.

Notably, long-time Cosmos ecosystem supporter IRISnet successfully conducted the first cross-chain transfer of NFTs in November, moving from a permissioned blockchain to Ethereum. The IRIS Hub plans to integrate with more blockchains in the first quarter of 2022.

2022 Airdrops

Many projects within Cosmos are set to launch in 2022, covering various fields such as NFTs, DeFi, and gaming. The team encourages users to stake their ATOM tokens to qualify for numerous airdrops in the future, including Evmos, Umee, Gravity, Bridge, LikeCoin, Game, Stargaze, and BitSong.