Development prospects in the Cosmos Ecosystem
Cosmos is a project that brings interoperability to independent blockchains within its ecosystem. The goal of Cosmos is to create “The Internet of Blockchains”, an ecosystem of connected blockchains where participants can exchange data and digital assets with each other without the involvement of a centralized intermediary. Among the most famous projects using Cosmos technology are Binance Chain, Cosmos Hub, OKExChain, Terra, and many others.
Using the first PoS consensus algorithm built using the Practical Byzantine Fault Tolerance (PBFT) protocol the Cosmos project is focused on blockchain interoperability, meaning users can create independent blockchains where each one is independently managed and can interact with other blockchains on the network.
ATOM is a Cosmos internal coin that plays a key role in Tendermint Core. An ATOM holder can participate in block staking and validation, and vote on proposals that affect the development of the Cosmos network.
There are two types of blockchains on Cosmos:
- Zones — ordinary blockchains
- Hubs — blockchains that connect zones.
The Cosmos Hub was the first blockchain launched in the ecosystem. Every new independent blockchain created in Cosmos binds to the Cosmos Hub and starts interacting with all other zones connected to the hub. This allows blockchains to exchange data with other networks, applications, and validators.
Three main components that work together to achieve the Cosmos goal:
Tendermint Core Algorithm
Tendermint Core is a software implementation of the Tendermint BFT consensus algorithm. Thanks to Tendermint BFT, the decentralized network in the Cosmos Hub can operate securely and reach consensus, but blockchain zones can operate on their consensus without Tendermint.
Tendermint Core connects to decentralized applications through the Application Blockchain Interface (ABCI) protocol, which is compatible with any programming language. ABCI acts as an intermedius between Tendermint and the Cosmos SDK. Tendermint operates on the basis of the Delegated Proof-of-Stake (DPoS) consensus algorithm, in which coin holders delegate their right to confirm transactions to a pre-selected validator. The main advantages of DPoS algorithms are high speed (up to 10,000 TPS) and scalability.
Cosmos Software Development Kit
Cosmos SDK is a modular framework for developing blockchain networks. It can be used to create blockchains and dApps based on Tendermint. The modularity of the Cosmos SDK allows you to transfer almost any existing blockchain code to Tendermint.
The Cosmos team has ported the Ethereum Virtual Machine to the SDK module. The result is the Ethermint network, which works exactly like Ethereum, but on Tendermint BFT. All existing Ethereum instruments, including wallets and smart contracts, are Ethermint compatible. The Cosmos SDK has also been used to build projects such as Binance DEX, Kava, Terra, Xar, Minter, and IRISnet.
IBC is a protocol that allows various blockchains, including those outside the Cosmos ecosystem, to interact with each other, exchange data and coins, and connect to Cosmos. To interact with blockchains on the PoW algorithm, IBC is used through the Peg Zones proxy chains.
What makes Cosmos the best solution for blockchain developers?
Cosmos is at the center of a new wave of multichain projects that bring unrivalled speed, usability and customization to the space. Thanks to innovations and applications being built on Cosmos, DeFi is gaining wider acceptance and becoming the force in global finance that has been promised for some time.
The Cosmos Community Conference will be held on November 5–6, 2021 in Lisbon, encouraging attendees to expand their knowledge about the Cosmos ecosystem. Speakers will include representatives of the project itself, as well as other specialists from the crypto industry. Conference topics will touch on the issues of the evolution of staking, infrastructure for a Multi-Chain World, interchain security, Web 3.0, convergence of the Metaverse and DeFi, and many others.
Representatives from different areas of the blockchain industry are planning to attend the two-day conference, including INC4! Meet the INC4 team at the conference to talk about building on Cosmos, or feel free to ask for an estimate about any other blockchain project you have envisaged or are currently working on. Get a free consultation right now!