Ever since the inception of the Internet, the interconnectivity in the real-life has grown significantly. Apart from the people, devices we use have been connected to each other to enhance the usability, thanks to the Internet of Things (IoT). On the contrary, Blockchains have remained to be isolated and communication with each other is near to impossible. Cosmos attempts to fix this issue by building a network among them called the “Internet of Blockchains”.
In this post, ChangeHero explores the project and gives you a glimpse of the Cosmos.
Bitcoin is the first and most popular blockchain application to be ever created. But, it fell short of keeping up with the change in the needs of the people. The pursuit of unleashing the complete potential of the blockchain gave rise to Ethereum. It is often entitled to be the torchbearer for the Second Generation of Blockchain and let developers build decentralized applications. These dApps automatically get processed when certain conditions are met and addressed as Smart Contracts.
Though the current blockchain technologies are impressive, they have a few setbacks. Firstly, scalability is a big concern as the network is limited to process only 15 transactions per second in case of Ethereum which is far behind the traditional payment systems. Secondly, its usability has been criticized due to the restrictions in the design and efficiency of the application. Finally, Interoperability is a feature that many networks lack making it extremely difficult to communicate with across the blockchains.
Cosmos seeks to address these challenges by arming developers with tools to build blockchains easily and break down the walls between them ultimately leading to the Internet of Blockchains. In simple words, Cosmos is a decentralized ecosystem of blockchains that can interact and transact value with each other.
Unlike the rest, in the Cosmos protocol, Tendermint BFT(byzantine fault-tolerant) bundles the networking and consensus layers as a generic engine. It enables the developers to focus more on the development of the application rather than on the underlying protocol. Developers can also build Private and Public blockchains on top of the Tendermint. As a result of this engine, block time is reduced to 1 second and scalability is dramatically improved and will be able to process thousands of transactions per second.
In order to enhance the usability, Cosmos provides its developers with Cosmos SDK which eases the process of developing the Application Blockchain Interface (ABCI). In addition, developers can also use any programming language to create applications. The main purpose of the SDK is to be modular and it can also be used to migrate the Ethereum Virtual Machine into an SDK module.
Inter-Blockchain Communication protocol (IBC) AKA Internet of Blockchains
In the Cosmos, Heterogeneous Chains are the individual blockchains built with different layers and unique governance. IBC allows the transfer of tokens and data between two Heterogeneous Chains using the Instant Finality property of Tendermint consensus. These chains are further grouped into zones which are connected to the Hubs. These Hubs are blockchains specifically designed to connect the chains and transact value among them. Cosmos Hub is the first blockchain to be launched in the Cosmos Network.
ATOM is the native token of the Cosmos ecosystem. The coin is not minted and is not meant for paying the fees to the transactions. ATOM can be used to delegate to the validators and earn more through Proof-of-Stake. Token holders also have the opportunity to vote in the governance of the Cosmos. As of writing, ATOM was being traded at $3 per token with a total market cap of over $500 Million and stands among the Top-20 cryptocurrencies.
Connecting the dots
All in all, Cosmos eases the process of creating blockchains and enables inter-communication among them. It is a unique project that is laying the foundation for the third generation of the blockchain. We believe that Cosmos has a huge potential and in the near future, ChangeHero will be integrating the ATOM token for instant exchange.