Cosmos, a decentralized network for the interoperability of blockchains, has recently launched its live software for staking tokens, dubbed Cosmos Hub, while anticipating operators to join force in its internal proof-of-stake (PoS) system as validators.

As of now, assets transfers between blockchains are not available, and will be enabled once validators agree on the set-up of an Inter-Blockchain Communication (IBC) protocol.

However, the selection of validators proves complex and challenging.

An Engineering Feat

As Tendermint Inc director Zaki Manian explained, validators in PoS system, especially for “this whole vision of connecting blockchains to work””, need to “have skin in the game to coordinate this blockchain network”. That’s why a separate infrastructure of staked tokens is specifically designed for the selection of validators

Over 200 nodes, or computer servers, have successfully tested in said system of validation via a model environment named Game of Stakes. Yet, the launch, now followed by real stake value, indicates that there could be changes in the future. Manian added:

“[Today’s launch] is about unleashing those live economic incentives and having value at risk for the first time and then letting this set of economic incentives that we’ve designed select who the [validators] are.”

To captivate more and more validators, Cosmos is rewarding validators with its own tokens called ATOM tokens.

Joe Pindar, co-founder of validator startup Block3, stressed that such form of reward would bring a great opportunity for income investment in the future. Meanwhile, Manian clarified that ATOM tokens are yet open for transferring, and for the time being, only act as “the collateral that people put at risk to be [validators] in the system.”

Once the system and validators are deemed ready, token holders will be able to vote for exchanging ATOMs and linking new blockchains, namely “zones”, to the Cosmos Hub.