Cosmos, known as the internet of blockchain, is a decentralized network of self-sufficient parallel blockchains. This network aims to improve interoperability and create a bridge between different blockchains.
Blockchain is a fantastic technology that cuts the hands of third parties and creates a peer-to-peer network.If something is missing from the blockchain, it is it cannot talk to other blockchains.
Cosmos tries to solve the problem and make blockchains communication easy. In this network, the focus is on interoperability and customizability. Here we will talk about features that make this network apart from other projects, so if you are interested to learn more about this network reading. But before diving into the concept of Cosmos, it is better to talk about blockchain for a bit.
What is a Blockchain?
A blockchain is a public digital ledger that runs through a set of validators. Every validator has a copy of the blockchain on their computer. Blockchain is a transparent system that allows participants to see the exact version of the ledger at any given time.
But the fascinating thing about is blockchains is that they are decentralized. The validators verify every input, but the system cannot share information with other blockchains. This is where Cosmos comes into the picture.
What is Cosmos Network?
Cosmos aims to allow blockchains to communicate and share data. Jae Kwon and Ethan Buchman created this network in 2014. By solving the interoperability problem, Cosmos ends the competition for being the one blockchain that rules all the other blockchains.
Jae Kwon and Ethan Buchman created Tendermint Core and Inter-Blockchain Communications (IBC) protocol as the two components of the network, we will talk about them later.
Tendermint is an open-source layer that allows anyone to win an application to use the infrastructure of this blockchain to integrate their decentralized network.
It is a consensus mechanism that lets developers create and run scalable, secure, and fast-proof stake-based blockchain.
It is interesting to know that Cosmos is just one of the platforms that have been built based on the Tendermint consensus mechanism. Regen Network, Terra, and Ethermint are other platforms that have been created based on this protocol.
This protocol allows blockchains to communicate with one another. According to this protocol, there are a series of interconnected zones and hobs that act independently but share the same system architecture.
The interconnected zones use proof of stake consensus to validate Tendermint transactions.
ATOM The Governance Token of the Network
ATOM is the native token of the Cosmos network. The total supply over ATOM is 237928231. If you are interested in investing in ATOM, you should know that over 40 million worth of ATOM is traded every day.
ATOM holders can stake and their tokens and validate blocks. They can also vote on governance problems and use the token to pay for transaction fees.
What Problems Does Cosmos Solve?
Cosmos, like Polkadot, aims to create an ecosystem of interoperable blockchain networks. The main difference between Cosmos and Polkadot is that Cosmos allows blockchains to act independently and take care of their security and governance rules.
Blockchain technology offers a variety of services and functionalities but operates in isolation.
Cosmos makes it possible for different blockchains to coexist.
In this network, developers can easily create new blockchain applications and platforms and share data.
How Does Cosmos Work?
The cosmos network consists of three layers: application, networking, and consensus. To make a network out of these different layers, the Cosmos uses a set of open-sources tools:
zones and cosmos hub
To make all the independent blockchain created within the cosmos network older zooms, Cosmos use a hub as an intermediary blockchain.
Each zone can work independently in authenticating accounts and transactions, creating and distributing new tokens, and updating the blockchain.
The cosmos hub is responsible for keeping track of the state of different zones.
Different layers of Cosmos
The network relies on three different layers. The first is the application layer that manages processing transactions. The networking is the second layer. This allows different blockchain to communicate with one another. The consensus protocol is the third and final layer of the Cosmos. The network users Tendermint consensus protocol.
Inter-Blockchain Communications protocol
If you were thinking about how different blockchains will communicate in this network, you should know that different zones are connected to the hub through the Inter-Blockchain Communications protocol.
Cosmos SDK or cosmos software development kit enables developers to create blockchains without coding everything from scratch. The network provides developers with plugins that will allow them to accomplish the core functionalities of their projects. The Cosmos SDK is similar to a website builder. Developers can pick a variety of features to create a unique blockchain.