Strictly speaking, Cosmos is a decentralized network of independent parallel blockchains powered each by BFT consensus algorithms such as the Tendermint consensus.
In other words, Cosmos is a blockchain ecosystem that can scale and interoperate with each other. Blockchains were siloed before Cosmos, and could not interact with one another. These were difficult to build and could manage only a small amount of transactions per second. With a new technical vision, Cosmos solves these problems. We need to go back to the basics of blockchain technology to understand this vision.
What Is Cosmos?
ATOM is a cryptocurrency which positions itself as a decentralized network of independent, fault-tolerance algorithms (BFT)-based blockchains. Tendermint BFT is a Byzantine, Cosmos Proof of Stake tolerant consensus system. Such blockchains communicate with each other via the Cosmos network, the “Blockchains Network.” Cosmos Hub is the first blockchain introduced in cosmos, with the main task being to interconnect other blockchains in the ecosystem. In the Cosmos Hub, tokens can be moved safely and quickly from one blockchain to another. ATOM is traded on multiple crypto-exchanges such as Binance, OKEx, and Huobi.
Cosmos Network Components
The Cosmos network consists of three key components:
Tendermint Core, which communicates with network rates and consensus protocols. It includes a clear Tendermint BFT and an IBS algorithm for connecting the hub/zone.
Application Blockchain Interface (ABCI) is a BFT replay of DApps in multiple programming languages. ABCI is independent of language and allows developers to create part of their blockchain application in any language. It is the binding mechanism between the Cosmos SDK and the Tendermint Core.
The Cosmos SDK is a source for developers also known as’ the Base Coin.’ The main purpose of SDK is to reduce the complexity of developing ABCI for blockchain’s general features so that developers can focus on a simplified environment on custom applications.
The Cosmos Hub consensus is responsible for Tendermint Core. Blockchains connected to Hub retain their sovereignty without turning to Tendermint.
With the support of Cosmos SDK, developers can build own apps and blockchains and launch over Tendermint Core, taking care of the application layer alone. ABCI uses a socket protocol to control the status of a negotiated application by the negotiations engine.
Cosmos is, therefore, able to support a wide range of cryptocurrencies and languages like Bitcoin, Ethereum, ZeroCash, CryptoNote and many more. These blockchains can be linked by the IBC protocol, even if they have different consistent algorithms. Developers may enforce semantics of a particular IBC protocol, enabling the transfer of valuable assets between various blockchains while preserving their contractual characteristics.
What’s Interesting About Cosmos?
Cosmos aims to solve the problem of scalability and the usability and sovereignty of modern blockchain infrastructure. The largest blockchains known as Bitcoin or Ethereum are the clearest examples of scalability problems. The BTC blockchain can only handle 7 transactions per second, while the Ethereum blockchain can handle 25 transactions.
Cosmos solves the scalability problem by using the Tendermint hybrid mining algorithm to build autonomous blockchains. Operations performed in blockchains, therefore, do not affect the overall network load. It solves the issue of scalability for hybrid mining.
What is ATOM?
Atom (ATOM) is the main crypto-currency that resides on the top of the Cosmos platform (not to be confused with the abandoned Atomic Core (ATOM) project) designed to facilitate connectivity, scaling, and interaction between independent chains. Considered “the Internet of Blockchains,” the Cosmos aims to unite various blockchains on one network and to address from the outset many important problems that plagued this technology:
Cosmos Network projects will allow their tokens to be exchanged without too much fuss. The network is designed as a modular framework for use with different types of application-specific blockchains. These chains should be easier developed, coupled with the ability to transfer value from one to the next, without affecting their mutual sovereignty.
Also, the Cosmos markets itself as a toolkit of a kind, with its flexible and adaptable tools available to developers ready to start working on internet decentralization and the associated financial infrastructure.
What is Cosmos Blockchain?
The universe was turned back when the Bitcoin whitepaper was released by Satoshi Nakamoto on 31 October 2008. Bitcoin introduced the world to blockchain technology, among many things. Since then, floodgates have opened up, some of the largest companies in the world have implemented blockchain technology. Ethereum has shown blockchain technology flexibility to the world.
Nevertheless, problems arise with quick adoption. The issues lie in the areas of scalability and interoperability. Cosmos Blockchain aims to address all of these issues and push blockchains to the next level before we reach Cosmos, let’s take a closer look at the problem of scalability and interoperability.
To compete with more popular systems like Visa and PayPal, Bitcoin and Ethereum need to significantly step up the transaction times. Although Ethereum manages 193 transactions per second and a visa handles 1667 transactions per second, Ethereum only manages 20 transactions per second, while a huge 7 transactions per second are handled by Bitcoin! The only way to improve these numbers is by working on their scalability.
Now many possible solutions have been found to the scalability problem, such as:
- Lightning network/Raiden.
Although both can be useful, however, they have their drawbacks.
Segwit is a vertical scaling solution that is highly dependent on a single machine’s physical capabilities. Lightning Network is a great payment system, on the other hand, but only microtransactions can now be handled.
Let’s look at the ecosystem today. We have various crypto coins in the cryptosphere, including Bitcoin, Ethereum, Litecoin, etc. Likewise, we also have networks like traditional banks in the legacy financial world that use SWIFT, ACH, etc. The issue is that these different organizations are very difficult to communicate with each other. It is hard for Bitcoin to know what’s happening in Ethereum and vice versa. Such blockchains are silos more often than not and seldom share information. Nonetheless, we have options such as atomic cross-chain swap which is not real interoperability.
If banks try to communicate with cryptos, it becomes doubly difficult.
This is why it is so powerful and important for the crypto-exchanges, which provide a gateway between cryptos and banks. However, there is a problem in itself. Trade is not a transparent body and is highly vulnerable.
- They can get hacked.
- They can blackout for a long time to upgrade the system.
Furthermore, there is another field in which the misunderstanding between the heritage world and the crypto world can lead to a catastrophic outcome: ICOs.
In ICOs, an entity receives millions of dollars in return for their tokens, but it can be difficult to save money on its bank accounts. Naturally, the banks would like to know from which all that money came and who received the money, which is almost impossible to supply.
Cosmos Blockchain is the Solution
Cosmos strives to become a “blockchain Network” that will solve these problems once and for all. The architecture of Cosmos consists of several independent “Zones” blockchains attached to the main blockchain called “Hub.”
“Zones are operated by the Tendermint Core, which offers a high-performance, consistent and reliable PBFT consensus engine that guarantees strict fork accountability for the actions of malicious actors. The BFT consensus algorithm of Tendermint Core is perfect for scaling public proof-of-stake blockchains.”
Who’s Behind the Project
There are several foundations and developer teams behind Cosmos: The Interchain Foundation (ICF) is a Swiss non-commercial organization, a driving force for the further growth of the Cosmos ecosystem. The ICF has signed a contract to build the Cosmos network with All in Bits Inc.
Jae Kwon and Ethan Buchman are the key partners. IRIS Foundation Ltd. is also sponsored by ICF in creating IRISnet. As you can, a large number of companies are involved in the Cosmos ground operation.
How Does Cosmos Plan to Deal with the Scalability?
The Cosmos developers define the current proof-of-work protocols as slow, costly, environmentally harmful and without the potential for scalability. For example, in the case of Bitcoin, the increase in the number of transactions probably resulted in a marked decrease in platform efficiency. Ethereum defines decentralized applications that are built on top of it as restricted by the limited number of transactions that can be performed in a second, and by the dApps, which must compete for resources in the blockchain.
Cosmos seeks to solve these problems by using a range of tools available to it, such as:
- Tendermint. Tendermint Core is the Byzantine Fault Tolerance Engine with the theoretical capability to deal with a transaction volume of 10,000 transactions / second for 250-byte transactions, which is said to be in a 1 second block time. The Cosmos developer hopes to reach the point where the program itself becomes the only scalability bottleneck by removing the proof of work and improving the output around vertical scalability. The development of decentralized applications is done over Tendermint as the blockchain application itself. The only way to determine the transaction types and transfer functions required by the application is to enhance its performance.
- Cosmos SDK is a technical toolset designed to simplify the process of developing stable Tendermint blockchain applications. With it, the developers say that creating a blockchain needs to be streamlined to the point that the entire process is not more complex than coding multiple modules.
- Inter-Blockchain Communication Protocol (IBC). The IBC, paired with Tendermint, allows the exchange of values (such as tokens) and data between heterogeneous chains. Blockchains can achieve the infinite theoretical scalability, which Cosmos Team defines as the’ horizontal,’ by making many chain architectures run the same applications and a common validator collection.
Cosmos: A Hive of Hubs and Zones
To address these problems and to achieve its “blockchain Internet” goal, the network architecture of Cosmos had to be divided into two main components:
- Zones that function as separate blockchains.
- Hubs that serve as the key link between blockchains
Based on this type of organization, hubs play the part of centralized leaders in the Cosmos network for each independent chain. Tokens kept at the exchanges can also be traded using the hubs. The Cosmos center is the POS blockchain running on the Tendermint algorithm. This serves as the networks ‘ main pillar and keeps the disparate blockchains under one umbrella and stops them from collapsing into a disorderly mode of operation. The center, which should facilitate interactions between chains with the aid of the IBC, plays an essential role in this.
How Do Hubs Operate?
Promoting activities such as token exchange can be a challenge to ensure that both token sources and validators are trusted. As the tokens pass between different chains, the chain must trust the validator sets every time it receives a new token.
The Cosmos network aims to solve the issue by connecting its hubs to the relevant areas rather than by promoting the direct links between the areas themselves. When the links are restricted to other hubs alone, exposure to duplicate spending or tokens freezing should be reduced. Hubs thus act as the main sources of’ confidence’ between the companies, instead of forcing them to take direct account of the trustor to do the same for the chains through which the tokens pass during their transfer.
The central role of the hub plays a key role in ensuring safety in the efforts of the Cosmos developers. Its security is managed by a worldwide decentralized validator group.
It technology should be used by the decentralized nature of the system architecture. Alongside the Cosmos hub itself, some secondary hub projects are already underway. One of these is the IRIS network, launched in March 2019 in China, to eventually connect different business services and individual chain operations with the Cosmos network.
How Does Tendermint Work?
Zones in the Cosmos network still need a reliable underlying system that provides all participants with consistent performance, protection and accountability. These activities were carried out on the Tendermint network, in particular, the two main elements:
- Tendermint Core ensures that the same transactions are registered on each computer in the same sequence. This operates as a protocol that involves a consensus algorithm and a peer-to-peer networking protocol. Transactions are propagated through the gossip protocol between nodes. Peer and gossip discovery protocols are secured using the encryption system of the Tendermint.
- The second component of the Tendermint framework is the Application Blockchain Interface (ABCI). It also means that transactions can be performed in any language of programming.
The key aspect of its implementation on the Cosmos platform is that two of the three major strata of traditional blockchain architecture–consensus and networking layers–are put together. On that basis, developers should concentrate on defining the application layer only and thus save a lot of coding time that could instead be used for development.
Tendermint opts for modular architecture rather than a monolithic one, which is supposed to provide better safety and performance for immediate purposes.
How Do ABCI and Cosmos SDK Work Together?
When the applications are created, the applications are to be linked to the Tendermint Core through the ABCI protocol that also supports communication between the resident application and the Core itself. The ABCI offers for the Tendermint Core three types of connections:
- Mempool connection verifies whether transactions must be relayed before committing.
- Consensus connection helps to manage committed transactions.
- Query connection helps the platform to query application status.
The Cosmos Software Development Kit, which works with the ABCI system, will allow developers to make it easier to create application-specific blockchains. This is accomplished by promoting the development of the ABCI for blockchains using a single structure. The SDK has a modular structure divided into layers that are on top of the ABCI and complete with tools designed for development.
The team behind the project is concentrating at the current moment of the Cosmos production on improving the existing PoS algorithm. Also, Cosmos will release its crypto wallet to store ATOM and to conduct transactions at Cosmos Hub.
In the future, as Cosmos reaches the next level of development called “Galactic,” the project is to release its first Cosmos Hub production version and launch the first blockchain on the Cosmos network.
Cosmos (ATOM) Latest News
Binance will add Cosmos (ATOM) staking at an annual rate of 8-10% by December 5.