Stakely Blog
February 15, 2023

What to expect from the Cosmos Lambda Upgrade - Lambda V9

February 15, 2023

The v9 Lambda upgrade will enable Replicated Security in the Cosmos ecosystem, which aims to "replicate" the security of Cosmos Hub as a provider chain in consumer chains. As an investor, do you want to know how this implementation will affect you? Stay tuned and discover the news of the Lambda upgrade in Cosmos.

What is the v9-Lambda upgrade?

The mainnet upgrade of Cosmos Hub to version 9 (v9), also known as the Lambda upgrade, aims to activate Replicated Security, which will enforce the rules of good functioning of the Interchain Security (ICS). In fact, it is part of the planned process in the roadmap of Cosmos, which adds features related to liquidity, usability, participation, and security in each upgrade.

Previously, we explained what the Cosmos' Theta upgrade consists of and reviewed the most technical contributions of the latest Cosmos upgrade. As for the imminent V8 Rho upgrade, it will come to correct a series of errors discovered as a result of the previous one, such as the known Quicksilver ICA exploit. Once the v8 Rho upgrade is deployed, the long-awaited v9 Lambda upgrade will arrive.

Replicated Security

The Interchain Security (ICS) is a set of functionalities aimed at improving the scalability of the Cosmos ecosystem. One of these ICS functions is Replicated Security, which specifically replicates the security of the Cosmos Hub to consumer chains, as well as monitoring compliance with rules that enable its harmonious development.

With the implementation of ICS and especially Replicated Security, new ways to generate incentives that will enhance development within the ecosystem arise, such as interconnected economic zones that will create financial rewards for developers, validators, and delegators.

Financial cooperation of interconnected economic zones

Cosmos Hub will be the first provider chain to apply ICS by offering Replicated Security to various consumer chains. What can we expect after the v9 upgrade? Once ICS with Replicated Security is established:

  • Cosmos Hub validators will produce blocks for both the provider chain and the consumer chains from separate nodes.

  • Consumer chains will save time and capital to start operations.

Established blockchain chains with a strong track record and capitalization, such as Cosmos Hub, can support new consumer blockchain chains with technological and financial resources. However, this initial push also entails no less important responsibility. To ensure a future, consumer chains should consider the importance of the chain being profitable for at least 66% of validators to avoid chain halts.

This new dynamic could be seen as an economic agreement, so a proper agreement will need to be established to ensure that both the provider chain and the consumer chain fulfill their respective obligations.

The v9 Lambda upgrade will bring the necessary tools to drive the growth of other blockchain chains, ensure compliance with operating regulations, and continue to advance towards the expansion of the Cosmos ecosystem.

Key aspects of the Replicated Security implementation

The implementation of the Replicated Security code in the ecosystem brings certain characteristics that allow for optimal operation for all parties involved. Let's review some of the key aspects of the Replicated Security implementation:

  • Start and end with governance. Each consumer chain formalizes its intention to join or withdraw from the provider chain through a governance proposal. On the other hand, it may happen that a provider chain does not consider a consumer chain profitable, safe, or reliable, which is why it will also use governance to stop block production. Except for extreme cases such as protocol failures or attacks, governance will be the status quo.

  • Testnet before launch. The consumer chain must participate in a Cosmos Hub Replicated Security testnet, as well as run its own test networks. Equally important is that it passes an audit test, endorsed by accredited auditors.

  • Minimum consensus to launch a consumer chain: >66%. Once the governance proposal to incorporate a new consumer chain is accepted, validators will have to accumulate a total of more than ⅔ of the total voting power (>66%) to launch the network and begin block production.

  • Replicated security does not allow individual adhesion or separation by validators in the network. Consensus is essential to preserve order in the Hub, therefore, if a validator acts alone without the consensus of the set, it could incur in slashing. In other words, once the proposal is approved, all validators in the provider network will produce blocks for the consumer chain.

  • ⅓ of the validator set can stop a consumer chain, even if previously accepted by governance. Apparently, this option may contradict the previous point, but it can be a resource that validators can use in extreme cases. So if more than ⅓ of the voting power of the provider chain validators do not agree with the operation of a consumer chain, they can stop block production.

  • Slashing. As it is Replicated Security, misbehavior in consumer chain block production (double-signing or prolonged inactivity) has the same penalties that apply in the provider chain.

  • Benefits. The provider network provides the security of its entire set of validators to the consumer chains that rent the Replicated Security. In other words, if someone wants to corrupt a consumer chain, they will have to directly attack the provider chain, which implies a very high cost.

When is the v9-Lambda Upgrade Proposal going on-chain?

We are still waiting for the proposal of the v9-Lambda upgrade to be launched. Meanwhile, it is still in the discussion period where recognized personalities from the ecosystem participate. Once the main draft is concluded, the proposal will go to governance voting, and the expected implementation date will be established.

The proposal is extensive, as expected. Replicating the security of Cosmos Hub to consumer chains represents a high degree of responsibility and commitment, which will be reflected in additional rewards for delegators who have trusted the system.

To learn more about the Lambda upgrade in Cosmos, visit the details of the proposal draft. This concludes our introduction to what Replicated Security will be and a small preview of what Interconnected Economic Zones will be. If you want to know more about this topic, let us know through Twitter or Telegram!

See you soon, cosmonaut!

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Gloria Zulay


What is the v9-Lambda upgrade?
Key aspects of the Replicated Security implementation
When is the v9-Lambda Upgrade Proposal going on-chain?

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