What is Cosmos?
Cosmos is a decentralized network of independent parallel blockchains, each powered by BFT consensus algorithms like Tendermint consensus. In other words, Cosmos is an ecosystem of blockchains that can scale and interoperate with each other. Before Cosmos, blockchains were siloed and unable to communicate with each other. They were hard to build and could only handle a small amount of transactions per second. Cosmos solves these problems with a new technical vision. In order to understand this vision we need to go back to the fundamentals of blockchain technology.
The Cosmos Vision.
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.
This vision is achieved by a set of open source tools such as Tendermint, the Cosmos SDK, and IBC designed to allow people to quickly build custom, secure, scalable, and interoperable blockchain applications.
The Team Behind Cosmos Blockchain
Cosmos is supported by the Interchain Foundation (ICF). The Tendermint team has been contracted by the ICF for development. Tendermint and, by extension, Cosmos has a brilliant team behind it. Let’s meet the chief players:
Jae Kwon: He is the CEO and founder of Tendermint. He had earlier co-founded “I done this” a productivity app for teams. He has also made many contributions to multiple projects including Scramble.io, Flywheel networks, and Yelp.
Ethan Buchman: The CTO and co-founder, has a Master’s degree from the University of Guelph and more than 2 years of experience working as a research scientist. His first work in the blockchain space was with Eris Industries back in 2014.
How Does Tendermint Work?
Zones making up the Cosmos network still need a robust underlying system capable of delivering consistent performance, security and accountability of all participants. These tasks fell on the Tendermint platform, particularly the two of its main components:
- Tendermint Core makes sure that the same transactions are recorded in the same sequence on each machine they run on. It functions as the protocol which comprises a consensus algorithm and peer-to-peer networking protocol. Transactions are propagated between nodes with the help of the gossip protocol. Peer discovery and gossip protocols and are secured with the help of the Tendermint’s encryption system.
- The second component of the Tendermint system is its application interface called the Application Blockchain Interface (ABCI). It also ensures that the transactions can be processed in any programming language.
The key aspect of its implementation on the Cosmos platform is that it brings together two of three main layers of the generic blockchain architecture – the consensus and networking layers. Based on this, the developers can focus on defining the application layer only, thus saving themselves much coding time which could be used for the development instead. Tendermint opts for the modular architecture instead of a monolithic one, which is supposed to deliver instant finality, better security and performance.
Benefits of Tendermint
- Tendermint can handle transaction volume at the rate of 10,000 transactions per second for 250byte transactions.
- Better and simple light client security which makes it ideal for mobile and IoT use cases. In contrast, Bitcoin light clients require a lot more work and have lots of demands which makes it impractical for certain use cases.
- Tendermint has fork-accountability which stops attacks such as long-range-nothing-at-stake double spends and censorship.
- Tendermint is implemented via Tendermint core which is an “application-agnostic consensus engine.” It can basically turn any deterministic blackbox application into a distributedly replicated blockchain.
Tokens On The Cosmos Network
The Cosmos network has implemented two tokens:
- ATOM is the staking coin that is mainly used for governance. By staking ATOM, the zone validators can join the hubs, with an option to have their stake reduced by misbehaving in their zones.
- Photons are the coins used for the payment of the transaction fees within the Cosmos platform ecosystem. As the zones can use their own tokens, the validators in the hubs can have their transaction fees paid in any token combination. Two percent of the fees are earmarked for the reserve pool, while the rest goes to the validators based on the size of their stake.
The initial coin offering (ICO) for the Cosmos was held in April 2017, ending up with more than USD 17 million collected as part of the fundraising effort. The total supply of ATOM is capped at 236 million ATOM. After the launch of the Cosmos mainnet on March 13, ATOM found itself being added to various cryptocurrency exchanges.
What To Expect From Cosmos In 2020?
If we talk about some numbers, then we can predict the average price of ATOM coins. By the early 2020, the ATOM will cost $4.18. Along the year is not so predictable. However, if the developers improve the system, then the coin rate will be up to $5.1.
Let’s look at the advantages and disadvantages of cryptocurrency. Advantages:
- Support in cryptocurrency circles. Almost all the top exchanges themselves, without an application from the developers, added the altcoin to the listing. Moreover, he is supported by Changpen Zhao of Binance and Fred Ersam of Coinbase. The latter (or rather, his hedge fund Paradigm) invested $ 9 million in development.
- Promising technology. According to most experts, the integration of various blockchains will not only solve many current problems of the cryptocurrency market but also make it truly global.
- Practical use. The technology is already used by well-known services and applications: Binance Chain, e-Money, IOV, IRISnet, Kava, Lino Networks, Terra and many others.
Source : Blockgeeks, Cosmos, Cryptonews, and Changelly.
Other article you may like to read :
- What Is Binance Coin (BNB)? : A Guide to the Crypto of the Famous Exchange
- What is Qtum (QTUM) Cryptocurrency : The Basics For Beginner
- Need to know about Nano?
- Bitcoin SV : A Guide For Beginner
- Tezos : A Guide For Beginner.
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