Review Cosmos ($ATOM) – The Internet of Blockchains

Along with scalability, interoperability has always been a critical issue in the world of blockchain technology. The Cosmos ecosystem is quickly developing, with inter-blockchain transfers increasing in popularity. What separates Cosmos from other blockchains?

What is Cosmos ($ATOM)?

Cosmos (ATOM) is a decentralized ecosystem of separate blockchains that All In Bits Inc (dba Tendermint Inc) expects will provide the groundwork for the next generation of internet technologies. Rather than taking part in crypto faction wars, Cosmos links them all together, enabling interoperability, currency swaps, and an Internet of Blockchains (IoB). Atom is the network’s unique staking coin that also tokenizes transactions.

To do this, the team created two components: Tendermint Core and an Inter-Blockchain Communications (IBC) protocol. They form the Cosmos Network when they operate together.

Tendermint Core — Tendermint is an open-source foundation that serves as a blockchain development platform. Anyone having a blockchain-in-a-box implementation may use it to incorporate their own decentralized/distributed network, as well as their own BFT-compatible consensus process.

Inter-Blockchain Communications (IBC) — The interconnectivity layer is the next layer, which allows communication between all of the various chains. This results in a network of interconnected zones and hubs that operate independently while sharing a common system design. This is the primary layer for cross-chain token, data, and digital asset exchanges.

Cosmos Network, like a large number of other Blockchains, is composed of three layers:

• Application: Responsible for updating the state given a set of transactions, i.e. processing transactions.
• Networking: Responsible for the propagation of transactions and consensus-related messages.
• Consensus: Enables nodes to agree on the current state of the system

OutStanding Features

What Is Cosmos Trying to Achieve?

Cosmos intends to continue resolving the following Blockchain-related issues:

• Scalability: While the early Blockchains have demonstrated a high level of scalability, i.e. the capacity to execute a large number of transactions per second, this remains a significant technological problem.
• Ease of use: Programming apps on Blockchains is somewhat complex for developers. Among other limitations, they are restricted to a small number of programming languages and are incapable of implementing autonomous code execution.
• Sovereignty: Each application is sovereign only to a certain extent. Applications are environment-dependent. For instance, if an application contains a defect, nothing can be done on the Ethereum network without governance (a good example is the parity wallet problem at the end of 2017). If the application demands a new functionality in the Ethereum virtual machine, it will be subject to the Ethereum platform’s governance.

Cosmos’ primary objective is to address the market’s lack of interoperability. The blockchain sector as a whole covers a vast array of services and functionalities. However, each blockchain presently runs independently. This erodes the market’s overall capacity to do critical activities such as advocating for more pro-crypto legislation or other critical industry changes.

Different blockchains can coexist with their own unique use cases via Cosmos. This enables developers to concentrate their efforts on enhancements rather than on marketing and other competition-related activities. Additionally, Cosmos enables various blockchains to harness the features of other platforms to enhance their utility.

Cosmos technology

Hubs and Zones

The Cosmos Hub was the first blockchain to be built on the Cosmos Network, and it was the first one to start. The hub acts as a gateway through which all the different blockchains in the network can work. The different blockchains are called “zones.”

Within Cosmos, each zone can do its own thing. Everything from verifying transactions and accounts to making and giving out new tokens is part of this, too. The Cosmos Hub lets all of the blockchains work together by keeping track of their states, so they can all work together.

The true value of these hubs, zones, and inter-blockchain communication packets is that all participants in a value transaction may obtain what they desire. All of this while retaining autonomous token models, economics, and governance mechanisms. As if each of these parties were a blockchain in its own right, the Cosmos network serves as the internet of blockchains.

Tendermint Byzantine Fault Tolerance (BFT)

The Tendermint BFT engine is a critical component of Cosmos’ layered architecture. It enables developers to construct blockchains without the need to write custom code.

Tendermint BFT encapsulates the consensus and networking layers into a generic engine, allowing developers to concentrate on application development rather than the intricate underlying protocol. As a result, Tendermint saves hundreds of hours of development time. It is an algorithm that is used to validate transactions, secure networks, and commit blocks to the blockchain by computers operating on Cosmos. It connects apps via a protocol by utilizing the Application Blockchain Interface.

Tendermint Core makes advantage of a Proof-of-Stake (PoS) technique to keep the distributed network that runs Cosmos Hub synchronized. To get started, validator nodes must stake ATOM in order to power the blockchain and vote on updates. Voting power is determined by the quantity of ATOM staked. Additionally, users may delegate tokens to additional validators, awarding votes to them while still earning a piece of the block reward. Validators, on the other hand, are motivated to act honestly.

The characteristics that define Tendermint BFT as a cutting-edge blockchain engine are as follows:

• Private or public blockchain ready: Tendermint BFT is responsible for the blockchain’s networking and consensus layers. This is accomplished by assisting nodes in propagating transactions and validators in agreeing on a set of transactions to add to the blockchain. The application layer’s function is to specify how the validator set is constructed.
  As a result, developers may use the Tendermint BFT engine to create both public and private blockchains. When an application specifies that validators be chosen based on the number of tokens they own, the blockchain is said to have Proof-of-Stake (PoS). If, on the other hand, the application specifies that only a limited number of pre-authorized organizations may participate as validators, the blockchain is considered private.
  Developers can alter the rules that govern how the blockchain’s validator list is modified.
• High performance: Tendermint BFT can handle thousands of transactions per second and have a block time on the order of one second.
• Security: Consensus in the tendermint is fault-tolerant and responsible. When a blockchain forks, it enables the determination of culpability.
• Instant finality: Instant finality implies that no fork is generated until more than one-third of validators are trustworthy (byzantine). Users may rest certain that their transactions will be completed immediately upon the creation of the block.

Inter-Blockchain Communication (IBC) Protocol

The Cosmos IBC protocol was designed to address one of the most significant difficulties facing today’s blockchain systems: a lack of communication and data sharing between networks.

The Cosmos Hub is connected to the Zones through the Inter-Blockchain Communication protocol (IBC), a technology that enables information to flow freely and securely across connected zones.

Once a Zone is joined to the Cosmos Hub, it becomes interoperable with all other zones connected to the hub, allowing data to be exchanged across blockchains with widely different applications, validators, and consensus algorithms.

Cosmos Software Development Kit (SDK)

The Cosmos SDK is a scalable, open-source framework for building multi-asset public proof-of-stake (PoS) blockchain systems like the Cosmos Hub, as well as permission proof-of-authority (PoA) blockchains. Simplicity and simplicity of use are essential characteristics that software engineers want in order to rapidly develop interoperable, application-specific blockchains. The Cosmos SDK is a modular platform for developing blockchain-based apps rather than virtual machine-based applications.

The Cosmos SDK enables developers to utilize both pre-built and custom modules, allowing them to validate their minimal viable product prior to establishing their own public mainnet. Additionally, the Cosmos SDK enables users to link their own blockchain to the Cosmos Network through IBC, resulting in increased liquidity and user adoption. Additionally, the Cosmos SDK has been utilized to build a number of significant blockchain and cryptocurrency projects.

Cosmos Ecosystem

Explore Cosmos Network here

The Role of ATOM Token

ATOM is Cosmos’ native cryptocurrency, with three key uses:

• ATOM is used to pay fees. The fee may be proportional to the amount of computation required by the transaction
• The coin is staked behind validators for rewards in taking part in the consensus algorithm.
• ATOM holders may govern the Cosmos Hub by voting on proposals with their staked ATOM. The more ATOM you hold, the more voting power you have in platform decisions.

How to buy

Cosmos crypto (ATOM) trades on many popular exchanges like Coinbase, Crypto.com, CEX.io, and Kucoin. Additionally, you can obtain ATOM by staking directly as a validator or indirectly as a delegator.

Technical Data

Token Metrics

• Token name: Cosmos
• Ticker: ATOM
• Token Standard: ERC-20, BEP-20, Cosmos
• Contract:
  • ERC-20: 0x8D983cb9388EaC77af0474fA441C4815500Cb7BB
  • BEP-20: 0x0eb3a705fc54725037cc9e008bdede697f62f335
  • Cosmos: IBC/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2
• Token use cases: Utility, Governance
• Circulating Supply: 288,363,414
• Total Supply: Updating

Token Allocation

The total supply of ATOM is 287 M and the tokenomics is explained below:

• Seed tokens comprise 5.08% of total supply.
• Strategic tokens comprise 7.03% of total supply.
• Public Fundraiser tokens comprise 67.86% of total supply.
• All in Bits, Inc. (dba Tendermint) received 10.03% of total supply.
• Interchain Foundation received 10% of total supply.

Token Sale

Token Release Schedule

Public Fundraiser: No lock

All in Bits, Inc. (dba Tendermint): non-transferable token for 12 months, but can be staked and used in governance. The rest of the tokens are vesting for 22 months with a 2-month cliff after the mainnet launch

Team

The Interchain Foundation (ICF), a Swiss non-profit organization dedicated to funding open-source blockchain initiatives, was instrumental in developing and launching Cosmos.

In 2014, developers Jae Kwon and Ethan Buchman co-founded the Cosmos network, developing Tendermint, the consensus algorithm that will eventually power Cosmos.

Kwon and Buchman then co-authored the Cosmos whitepaper, which was followed by the release of the Cosmos software in 2019.

In 2017, the Interchain Foundation staged a two-week initial coin offering (ICO) for the ATOM token, raising nearly $17 million at the time. Tendermint Inc. secured $9 million in a Series A investment round in 2019 to continue the development of the product.

Conclusion

Cosmos is the infrastructure that developers may utilize to link their blockchain projects, therefore boosting protocol compatibility. There are now over 260 projects utilizing Cosmos. If Cosmos lives up to the hype, there may come a day when Cosmos connects the majority of all blockchains. This will enable plenty of new intriguing ideas and technological innovation.

Find more information:

Website: https://cosmos.network/

Twitter: https://twitter.com/cosmos

Telegram: https://t.me/cosmosproject

Discord: https://discord.com/invite/cosmosnetwork

Medium: https://blog.cosmos.network/

Reddit: https://www.reddit.com/r/cosmosnetwork/

Youtube: https://www.youtube.com/c/CosmosProject

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Marshall

Coincu Ventures