Noble Ditches Cosmos ‘Interchain Security’ To Avoid Slashing Attacks

The removal of automated slashing has led the company to launch as a proof of authority chain

article-image

anttoniart/Shutterstock.com modified by Blockworks

share

Noble XYZ, a Cosmos-based general asset issuance chain, has paused integration with Interchain Security due to slashing concerns.

Interchain Security — also known as Replicated Security — allows the Cosmos Hub to run multiple blockchains in parallel, all while using the same security attributes. 

Validators are able to secure different app chains through staking ATOMs, but when a validator engages in dishonest behavior, they will be penalized, or “slashed.”

The initial slashing strategy for Interchain Security was that a validator would automatically be punished if they did something wrong. A change was made so that slashing would be executed through governance, Blockworks Research analyst David Rodriguez explained.

In the new strategy, consumer chains must send a “slashing packet” to Cosmos Hub and the ATOM community governance will be able to vote on whether a validator should be axed.

This decision was made so that in the case that fault code is in a new chain, validators would not be immediately punished for it.

“Replicated Security is still nascent tech and as a security precaution, it makes sense to go the safer route via governance-gated slashing,” Rodriguez said.

Due to concerns that a bad actor could potentially rally support to slash a validator through governance even without participating in dishonest behaviors, Noble XYZ has chosen to launch as a “proof of authority” chain with a trusted validator set.

“The Proof of Authority model provides real economic cost to faulty validator behavior and thus provides economic security to the network that can be computed in real-time based on past and projected fees,” the company said on its GitHub page

Noble XYZ noted it would continue to monitor Interchain Security developments and ensure it remains up to date with the latest security standards. 

“This is a big blow to the Hub’s Replicated Security go-to-market (GTM) strategy,” Rodriguez said. “Noble would’ve aligned ATOM value accrual with the growth of the Interchain.”

Though this is the case, these are just the company’s initial plans. It’s hoped that once automated slashing is incorporated into Replicated Security, Noble will decide to re-align itself with the Hub.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Nillion_DeSci_Report_Template.png

Research

Nillion’s Monad Integration is poised to catalyze the next phase of DeSci’s evolution by eliminating key privacy bottlenecks. This synergy allows researchers, institutions, and DAOs to exchange sensitive data and insights securely while managing governance and payments onchain.

article-image

Halliday CEO Griffin Dunaif said that there may be smaller margins on stablecoins, but lots of potential in the services around them

article-image

Discounted cash flow is as close as you can get to a fundamental truth in the art of financial valuation

article-image

Solana’s focus remains on fundamentals: stable usage, high yields, and expanding infrastructure

article-image

While new XRP futures ETFs are set to launch, the SEC could wait several months to greenlight more spot offerings

article-image

Bitcoin may have traded like a safe haven asset Wednesday, but analysts warn the trend may not last

article-image

The pixelated game Craft World is set in a post-apocalyptic world where dinosaurs live with humans