The cryptocurrency market has been growing at a rate of over 6.5% per year for the past few years. This rapid growth rate demonstrates how it is preferred over regular currency and forex markets around the globe. The crypto market has been helped by blockchain technology, which allows it to penetrate the mass market. A study found that blockchains need to be able to communicate with each other if crypto is going to reach its full potential. Interoperability is a phenomenon in which Cosmos is one of the first blockchain concepts looking after this issue. Cryptocurrency company Cosmos has partnerships with some of the biggest cryptocurrencies.
Since blockchains form their own separate universes, it is very difficult for them to communicate with each other. If all blockchain universes and cryptos are connected, it will create a system that is easier to trade and invest in. Cosmos is working to improve the issue, and people are excited about this method. More people are learning about cryptocurrencies and the concept of blockchain technology. If you want to, you can also get some of the best blockchain certification courses.
Let us now go into more detail about Cosmos and everything related to it.
What is Cosmos?
Cosmos, also termed the “Internet of Blockchain”, is based on two core concepts. The two features being described are interoperability and customization. cosmos is unique from other crypto blockchains because of these two concepts. It wants to offer an ecosystem that is both decentralized and highly optimized. The network should be able to manage different crypto blockchains efficiently.
Cosmos works by creating independent blockchain systems, known as “zones”. TheCosmos Hubis the central hub that connects the different zones in the Cosmos network. The hub and the zones regularly study each other’s conditions and create reports based on their findings. You can learn about the Cosmos Hub through online blockchain technology training courses.
The hub is run and mostly powered by a particular Proof of Stake consensus mechanism. Moreover, Cosmos operates its native cryptocurrency known as ATOM. The transaction validators in the network are decided through the amount of ATOM holdings that are pledged to the essential operation of the overall Cosmos network.
Staking refers to the process of holding a specific amount of currency to support the operation of a blockchain system. If you learn blockchain technology, you can understand how Cosmos and ATOM work better.
History of Cosmos
Cosmos was first seen in 2014. It was created by Jae Kwon under a agreement called Tendermint. Kwon partnered with Zarko Milosevic and Ethan Buchman to build an interoperable system. In 2020, Kwon resigned from his position on the Cosmos project.
and important events that have shaped and continue to shape it. A timeline of the cosmos, highlighting important events.
At the time, the project had a fair amount of support from the Ethereum community In April 2017, the first-ever Cosmos token sale was conducted. The project had a fair amount of support from the Ethereum community at the time. The company raised $7 million in just 29 minutes after it started, which shows how successful it can be.
In December 2018, the Game of Stakes contest was launched to test the Cosmos network for the first time. The launch of the Cosmos mainnet finally took place in March 2019.
Kava labs became the first project to launch its mainnet using the Cosmos SDK in November 2019. In February 2020, Jae Kwon, the founder of Cosmos, stepped down as the company’s CEO, splitting the company.
The company partnered with Nym for the first time in September 2020, bringing anonymous credentials to the Cosmos ecosystem.
In February 2021, Cosmos released project Stargate, its largest project to date. Stargate was the first public release that included the Inter Blockchain Communication protocol. This launch solidified Cosmos’ position in the blockchain market.
You can find online courses on blockchain that will give you a detailed history of Cosmos and its impact on the global cryptocurrency market.
What is a Blockchain?
A blockchain is a digital ledger that is maintained by a set of validators. It remains accurate even if some of the validators are malicious. Each party has a copy of the ledger on their computer and updates it when they receive blocks of transactions. The goal of blockchain technology is to make sure that each honest party sees the same version of the ledger at any given moment.
The main benefit of blockchain technology is its decentralization, which allows parties to share a ledger without having to rely on a central authority. Blockchains are decentralized. The most well-known use of blockchain technology is Bitcoin, a digital currency that is not under the control of any government or financial institution.
Now that we understand what a blockchain is from a high-level perspective, let us look at the definition of blockchain with a more technical angle. A blockchain is a deterministic state machine replicated on
Let’s break this down.
- A state machine is just a fancy word for a program that holds a state and modifies it when it receives inputs. There is a state, which can represent different things depending on the application (e.g.
balances for a cryptocurrency), and transactions, that modify the state (e.g. by subtracting balances from one
and adding them to another). - Deterministic means that if you replay the same transactions from the same genesis state, you will always end up with the same resultant state.
- Consensus safety refers to the fact that every honest node on which the state machine is replicated should see the same state at the same time. When nodes receive blocks of transactions, they verify that it is valid, meaning that each transaction is valid and that the block itself was validated by more than two thirds of the maintainers, called validators. Safety will be guaranteed as long as less than a third of validators are Byzantine, i.e. malicious.
The state of the application is defined, as well as the state-transition functions. The other layers replicate the state machine on all nodes that connect to the network.
How does Cosmos function?
The core Cosmos network includes three primary functions. The system management can’t afford for these essential functions to break down. The three basic functions are maintained and stabilized under all conditions.
Applications
This refers to the entity within the Cosmos network that is responsible for maintaining records and providing information. The applications are responsible for processing the transactions within the network. The hubs and zones communicate with each other to share updates about the state of each zone. This information is then recorded and reported.
Networking
This line of communication is the basis for the entire Cosmos system. The networking system connects the hub with the different zones so they can communicate with each other. The applications layer records information that is transferred from the networking lines.
Consensus Mechanism
The consensus mechanism ensures the authenticity of the entire system. The PoS mechanism checks all internal transactions of the system. The mechanism then analyzes the text and checks for authenticity before progressing. This is the most advanced consensus mechanism, so it has a lot of potential to be used in future Cosmos ventures. The new consensus mechanism is an upgraded version of the PoW or Proof of Work mechanism.
An important aspect of these layers within the Cosmos network is that they need to be interconnected. The network will work properly and produce the best results if the components are connected correctly. Open-source software and tools make it easy to keep your connection lines up and running. The most important thing about the system is that it is always changing. At Cosmos, we’re always trying to get better by listening to our users. The system is upgraded and evolved according to the requirements based on this user feedback. Developers who specialize in blockchain technology are important to the success of Cosmos, as the system upgrade is reliant upon them. If you want to learn more about how these layers work, you can sign up for a course on the blockchain platform.
Tools Helping in the Functioning of Cosmos
Three things that help the Cosmos network function smoothly are its three main tools. They are discussed below.
Inter Blockchain Communication (IBC) Protocol
Amazon.com and other major online retailers The Cosmos network creates independent blockchains, referred to as zones. Amazon.com and other online retailers use similar blockchains to keep track of inventory and sales. Zones in the network are connected to the central hub, called the Cosmos Hub. The IBC protocol is a protocol that connects each zone to a central hub. Zones within the network are responsible for verifying accounts, executing transactions, minting upgraded ATOM tokens, and distributing rewards to users. Each zone can customize them to fit their needs. Each zone can function independently and does not require assistance. The IBC protocol allows zones to directly communicate with the Cosmos Hub, a phenomenon also known as interoperability. Since the hub is the only connection line within the network, the protocol is designed to hold all functions quickly, smoothly and securely.
Tendermint Byzantine Fault Tolerance (BFT) Engine
One of the best features of the Cosmos network is its Tendermint BFT consensus algorithm. This algorithm provides blockchain developers with the ability to create new zones within the network without having to start from scratch. The engine is responsible for system security and for adding new blocks at a fixed interval.
The Tendermint Core is the heart of the Tendermint entire blockchain ecosystem and it is what enables the blockchain to function. The Proof of Stake consensus mechanism controls the network by validating transactions and managing the nodes within the system. Every time a change or update is proposed to the network, all validator nodes must vote on whether or not to approve it. If you want to be a transaction validator, you need to have a stake in the ATOM crypto. In blockchain technology courses, you can learn about different aspects of the technology, such as being a transaction validator.
Cosmos Software Development Kit (SDK)
The creation of new blockchains can only take place when software development takes place through a Cosmos verified platform. The Cosmos SDK is a set of tools which blockchain developers can use to create new projects. Some of these tools include the Tendermint BFT Engine and the Tendermint Core.
The Cosmos SDK provides tools to manage all basic operations, like staking, minting, and distributing ATOM tokens. This development kit allows developers to change the Cosmos network however they want. This process, called customization, was mentioned earlier in the article.
How does it Fit the Current Blockchain Ecosystem?
It is necessary to examine the first cryptocurrency blockchain and compare it to other existing blockchain ecosystems in order to understand the role of Cosmos in the current market.
Blockchain 1- Bitcoin
Bitcoin is a blockchain created in 2008 using the PoW consensus method. The system was created using a peer-to-peer methodology, making it the first decentralized blockchain system. As people realized the potential of decentralized systems, they created more powerful versions. During the digital era, developers could only develop decentralized systems in two ways: either by forking the Bitcoin codebase or building the system on top of the existing codebase. The three primary layers of the Bitcoin codebase (applications, networking, and consensus) were combined as usual. The developers of bitcoin realized that the current codebase had limitations and that a new and improved codebase was needed.
Blockchain 2- Ethereum
In 2014, Ethereum came out as an advanced proposition to create new decentralized blockchain systems. The main aim was to create a single blockchain where people could put forward any sort of idea or proposal. Ethereum was able to accomplish this by making a virtual machine that everyone could access, called the Ethereum Virtual Machine or EVM.
An EVM could manage any type of program provided by the developers, and these programs are known as smart contracts. The developers did not need any specific permission to deploy these programs. They were able to do so without having to go through any formal process or ask for anyone’s approval. This approach led to the development of millions of decentralized applications by various developers. However, the entire system had several limiting factors, such as scalability due to a lack of resources. The system was not very flexible for the developers, which caused usability issues. In addition, there were cases where sovereignty resulted in governance problems, and bugs could not be solved easily in the programs.
Blockchain 3- Cosmos SDK
The main purpose of Cosmos is to enable developers to communicate and share transactions with other blockchains, without having to deal with the various barriers. The goal of the project was to create a decentralized network of networks, where every node could communicate with each other. Cosmos solved the issue of sovereignty in the world of blockchain, making transactions more straightforward and quicker, and communication smooth through an optimal ecosystem.
Open source tools Tendermint, Cosmos SDK, and IBC were used to design custom, safe, scalable, and interoperable blockchain solutions for all of these issues. Any developer can create, add, or change the internals of the Cosmos network, but they must adhere to some terms and conditions. The platform is constantly evolving and improving as new, more optimized concepts are added.
What are ATOMs?
ATOMs are token cryptocurrencies used by the Cosmos blockchain network. If you hold ATOMs, you can participate in Cosmos governance, voting, block validation and manipulation, and paying transaction fees.
At the beginning, when the original Cosmos mainnet was launched in 2019, ATOM tokens were created. Initial donors, participants of a token sale, employees of the Cosmos Foundation, and the developers working on the Cosmos network all received a share. The newly generated ATOM tokens were rewarded to the existing network validators or nodes over time. The only drawback to ATOM tokens is that they can’t be purchased directly from the market, like Bitcoin and Ethereum can.
If you want to buy ATOM tokens, you can learn how to buy them by taking a blockchain development course. If you want to mine and acquire ATOM tokens developed by Cosmos, you would need advanced blockchain development knowledge.
The Aim of Cosmos
The goal of the Cosmos network is to create a connected and decentralized network of blockchains. The introduction of Cosmos has removed many of the existing barriers to developing a decentralized blockchain system. Bitcoin and Ethereum are two of the most popular blockchains, but they have been unable to build systems that meet all the requirements.
The introduction of Cosmos has solved many limitations in the blockchain industry. Since the Cosmos tool is open source, developers are finding ways to improve it and make it more user-friendly for developers and validators. The term “Internet of Blockchain” is quite decisive since it has successfully developed itself into a platform that helps blockchains connect and communicate within themselves.
The story does not end here because the Cosmos platform is constantly being upgraded and improved by top blockchain developers. They are introducing newer and more optimized methods of dealing with blockchain communication issues by editing the basic layers and upgrading them to be more powerful.
Wrapping Up
Since Cosmos is solving a major problem that other cryptocurrencies could not, it has become one of the most promising cryptos. They are connecting blockchains in order to help every included cryptocurrency perform well in their respective areas of operation. The blockchain industry is stronger when individual projects are successful and working together. This shows that digital currency has a lot of potential. Since a single currency cannot solve all the issues, all currencies work together to solve the hindrances within the blockchain concept.
Although there are still a lot of regulations and limitations for trading cryptos, it is still challenging to work on them freely. What potential impact do digital currencies have on the global economy? This is making it more difficult for cryptos to circulate freely. If you’re interested in investing in blockchain technology, it’s important to do your research and be knowledgeable about the space. This will help you navigate through the market easily.
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