With the recent launch of its mainet, Cosmos has risen to prominence as a solution that aims to operate as a middleman between independent blockchains operating on its decentralized network. Let’s explore precisely what is Cosmos and why Cosmos has stayed a popular choice and how it allows blockchains to work together easily.
Overview About Cosmos (ATOM)
What is Cosmos?
Cosmos is a decentralized network aiming to enable various blockchains to communicate and share data through inter-blockchain communication protocol. According to the description of Cosmos, it is said that “The vision of Cosmos is to make it easy for developers to build blockchains and break the barriers between blockchains by allowing them to transact with each other. The end goal is to create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralized way. With Cosmos, blockchains can maintain sovereignty, process transactions quickly and communicate with other blockchains in the ecosystem, making it optimal for a variety of use cases.”
Who Invented Cosmos?
Cosmos was developed by a team of members with high technical expertise in the field of information technology in general and cryptocurrencies in particular.
– Jae Kwon: the Founder and CEO of Tendermint, co-creator of Cosmos. He has a background in blockchain software architect, computer science, and distributed systems. Jae has worked on numerous open-source projects including a cryptocurrency exchange.
– Ethan Buchman: a co-founder of the Tendermint and Cosmos projects, and continues to be actively involved in their development. He is CEO of Informal Systems, a company focused on verifiable distributed systems and organizations, including formal verification of Cosmos protocols and their implementation in Rust. He serves as Vice-President of the Interchain Foundation, a non-profit with a mission to research, develop, and promote open, decentralized networks, like the Cosmos Network.
What problems does Cosmos solve?
Cosmos solves three major problems in blockchain: sovereignty, scalability, and sustainability.
- Sovereignty – Traditional blockchains encourage all financial activity to take place on a single chain. This negates the decentralization mindset that was the whole purpose of setting up blockchain technology. Cosmos intends to empower developers and creators to make their own rules by controlling their own blockchains.
- Scalability – The original blockchain technology did not plan for the number of transactions that we currently see every day. Cosmos aims to improve blockchain speeds introducing horizontal scalability.
- Sustainability – The efficient Proof-of-Stake (PoS) consensus algorithm that Cosmos uses reduces the carbon footprint of blockchains, in some cases by 99%.
How does Cosmos (ATOM) work?
The Cosmos technology is consists of three layers:
1. Networking– Allows communication between transactions and blockchains
2. Application– Processes transactions and updates the state of the network
3. Consensus– Helps nodes agree on adding the transactions.
Cosmos relies on a set of open-source tools to tie all of the layers and allow developers to build blockchain applications.
The core of this multilayer design is The Tendermint BFT (Byzantine Fault Tolerance) engine. This allows developers to create blockchains without having to write code from scratch.
Tendermint BFT integrates the blockchain’s networking and consensus layers into a single engine. It helps to save a lot of developers’ time by allowing them to concentrate entirely on the application layer. The Tendermint engine produces use of a byzantine fault-tolerant (BFT) consensus process. The Application Blockchain Interface connects it to the application layer (ABCI). It is a protocol that enables developers to use whatever programming language they want. They might then use the language that meets their requirements.
Tendermint BFT can handle thousands of transactions per second and has a block time on the order of one second. And it simply requires one-third of the validator nodes to be honest in order to operate without forks. This implies that we, as users, may get instant completion on our transactions.
Cosmos zone and Hub
Cosmos creates independent blockchains called ‘zones’ which connect to the main blockchain called the Cosmos Hub. The hub monitors the state of each zone and maintains a record of the same. The zones do the same for the hub.
The Cosmos Hub is built on Proof-of- Stake consensus mechanism and uses ATOM as its native currency. This means that the transaction validators across the network are decided based on the amount of ATOM they contribute to the operation of the Cosmos network. The process of dedicating currency to the operation of the blockchain is called staking.
Inter-Blockchain Communication Protocol
The Inter-Blockchain Communication Protocol (IBC) is an intermediary connecting zones to the Cosmos Hub. Through IBC, information between chains can be exchanged freely and quickly, while ensuring confidentiality.
When a zone is linked to the Cosmos Hub, it becomes interoperable with all other zones linked to the hub, allowing blockchains with widely diverse applications, validators, and consensus algorithms to share data.
The Cosmos Software Develop Kit (SDK) is built by the Cosmos team, allowing developers to build blockchains using the Tendermint consensus algorithm.
The SDK reduces complexity by providing the most common functionality seen in blockchains (i.e., staking, governance, tokens). Plugins may be created by developers to offer any new functions they choose.
Some Information About Cosmos (ATOM) Token
What is Cosmos (ATOM) token?
ATOM is the native token of Cosmos and it serves utility and governance functions. Details on its specific use cases could be found below.
– Token name: Cosmos
– Ticker: ATOM
– Token Standard: ERC-20, BEP-20, Cosmos
- ERC-20: 0x8D983cb9388EaC77af0474fA441C4815500Cb7BB
- BEP-20: 0x0eb3a705fc54725037cc9e008bdede697f62f335
- Cosmos: IBC/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2
– Token use cases: Utility, Governance
– Circulating Supply: 286,370,297.00 ATOM
– Max Supply: Updating…
– Total Supply: 260,906,5131 ATOM
Use cases of ATOM
ATOM is Cosmos’s native coin that has has three main applications:
1. Users must pay transaction fees in ATOM, which are directly proportional to the amount of computing power required.
2. ATOM is also used in the governance mechanism of Cosmos Hub. You have more voting power in platform decisions if you have more ATOM.
3. Validators are rewarded for participating in the consensus algorithm by staking the coin behind them.
How to hold Cosmos (ATOM)?
ATOM is one of the top leading coins on the market today. As a result, it is listed on a number of major exchanges.
ATOM may be purchased on the most prominent exchanges, including Binance, Huobi, OKEx, and others.
ATOM is a self-contained blockchain coin that presently has a large number of wallets that can store Cosmos Blockchain data. Some of the wallets are listed below:
- App Wallet: Trust Wallet, Imtoken, Atomic Wallet, …
- Wallet of reputable exchanges Binance, Huobi, …
Summary: Cosmos (ATOM)-The Internet of Blockchains.
Cosmos and Tendermint are a network of interconnect blockchains developed to serve as the foundation for future technologies. It facilitates the construction and implementation of blockchains while also ensuring cross-chain interoperability. These important variables are crucial to the project’s success.
– Cosmos is a two-layer network that allows blockchains to exchange tokens, data, and assets. Each chain in the network is self-contained.
– Cosmos Hubs stake ATOM to validate on-chain transactions and earn ATOM. The Cosmos Network’s native cryptocurrency coin is ATOM.
– The Cosmos SDK and Tendermint Core are used to generate new blockchains, which are then connected via the IBC layer.
Cosmos is a well-built machine that can easily compete in the current blockchain market with these elements in place. This might be a sleeping giant in blockchain if the team can negotiate a substantial third-party dApp library and gain enterprise buy-in.
Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.