What is the importance of the Theta upgrade that Cosmos will implement?

on April 5, Juno Network development contributor dimi tweeted that the Cosmos Hub will activate the Theta upgrade in the next week, which adds an Interchain Accounts module to improve the Cosmos ecosystem. Interoperability.

What are Interchain Accounts? What will be the effect?

To be precise, Interchain Accounts enable native composability in cross-chain transactions, which will allow chains to not only exchange data, but also write state.

The IBC protocol is a cross-chain protocol in the Cosmos system that consists of two distinct layers: the transport layer (or “TAO” for transport, authentication, ordering) and the application layer, which provides the necessary infrastructure to The chains establish a secure connection and authenticate packets, which define exactly how the sending and receiving chains should package and interpret those packets.

This makes Cosmos a composable system, one whose various components can be decoupled, recombined, and reintegrated into larger systems as building blocks. In a highly composable setting, innovation and optimization can happen not only at the highest level, but at each component, and composability makes the whole greater than the sum of its parts.

In the Theta upgrade, the Interchain Accounts module developed by Interchain GmbH, Chainapsis, Informal Systems and Confio is enabled. In addition to connecting and transferring tokens, Interchain Accounts provide direct access to all IBC blocks from a Cosmos Hub account Permissions of the chain account.

Simply put, cross-chain accounts allow a blockchain to securely control an account on another blockchain using IBC. The intent is that instead of creating an application-level IBC for each module’s functionality, a cross-chain account would allow someone to leverage the account’s functionality to access the blockchain’s application-specific functionality.

The two most important features of cross-chain accounts are as follows:

Deterministically create a new cross-chain account via IBC, relay transactions to the cross-chain account and commit to the target blockchain.

It is guaranteed that after the above process is completed, Cosmos Zones (that is, each chain) are composable and do not reduce any regional sovereignty.

So, cross-chain accounts provide an easy way to create application composability, similar to how smart contracts interact with each other on the EVM by leveraging IBC.

This is critical for building network effects of applications in the Cosmos ecosystem.

Additionally, in terms of security, a design principle for establishing cross-chain accounts is that application interoperability should not require significant changes to the core blockchain application logic.

For example, if someone wants to implement an IBC application that enables one blockchain to access the staking module of another blockchain (in a scenario where the person is trying to create some type of liquid staking protocol), this may require changing staking Module target blockchain. Changes to core modules (such as bank, stake, or gov) should be done conservatively with extensive security analysis to ensure that modifications do not lead to new attack vectors or vulnerabilities.

Because cross-chain account application transactions are processed as internal account-level transactions, it does not require any modification to application modules (eg x/bank or x/gov) to accommodate IBC transactions. As long as the internal architecture of how account transactions are processed is robust and secure, adding IBC functionality does not introduce new potential vulnerabilities.

After the cross-chain account is upgraded, the applications on the Cosmos blockchain will become Lego blocks, and applications such as the following can be easily built: inter-chain pledge, cross-chain wallet, cross-chain token swap, multi-chain DAO, etc.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-is-the-importance-of-the-theta-upgrade-that-cosmos-will-implement/
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