One of the main problems of blockchains is the problem of compatibility. Each blockchain works within its own network. But the interaction between blockchains, if possible, is so far only due to special bridges. And it can be unsafe, long, and expensive. Therefore, projects dealing with the compatibility problem began to arise.
For example, the Polkadot and Cosmos projects. In this article we will talk about Cosmos. Attention: Cosmos technology differs significantly from Polkadot, so they cannot be compared.
Cosmos (ATOM) is a large-scale blockchain ecosystem or, as many crypto enthusiasts call the project, the "Internet of Blockchains". With Cosmos, developers can create fully autonomous blockchains for specific applications that easily connect to each other.
In other words, the created projects are no longer required to exist as smart contracts in someone else's chain. The project works on the Proof of Stake consensus algorithm, and the ATOM coin is a way of managing in the Cosmos Hub system.
Cosmos users can create independent blockchains. To do this, the project team has developed special tools that allow you to create your own blockchain networks. Each individual blockchain is managed independently, but can interact with other blockchains on the network.
We remind you that Cosmos itself is not a blockchain, but an ecosystem. And the main blockchain of the Cosmos ecosystem is Cosmos Hub. Cosmos Hub is the center of Cosmos, its connecting link.
Other blockchain Zones (Osmosis, Juno, etc.) can connect to the Hub. Zones can exchange data with each other just due to communication with the Hub. This connection allows you to make transactions quickly and with minimal commission.
As soon as the blockchain zone is connected to the Cosmos Hub, it begins to interact with all other zones connected to the hub. This allows blockchains to exchange data with other networks, applications and validators.
History of creation
First, let's clarify one algorithm. Tendermint is a consensus algorithm that has a reliable mechanism of resistance to unauthorized actions.
The creator of Cosmos and Tendermint is American programmer Jae Kwon.
- In 2013, he became interested in blockchain and created the Tendermint protocol, a PoS algorithm.
- In 2014, Kwon organized Tendermint Inc. (which is also registered as All Bits, Inc.) and published a "white paper" of the project. A year later, Kwon, together with developer Ethan Buchman, founded the Interchain Foundation (ICF), a non-profit organization that sought funding for Tendermint and the development of projects based on it.
- In 2016, Tendermint attracted the first funding, releasing the Basecoin blockchain framework, on the basis of which the first iteration of Cosmos Hub was created.
- In April 2017, Cosmos held an ICO and raised $17 million in just half an hour.
- In 2019, the main version of Cosmos Hub was launched, on the basis of Tendermint Core, its own blockchain of the Binance exchange — Binance Chain, as well as the main Cosmos network, was created.
- In February 2021, the Blockchain-based Service Network (BSN), China's blockchain infrastructure platform, added support for Cosmos. BSN is a large-scale project of the authorities, who also seek to launch an "Internet of blockchains" and create a platform that allows developers to launch various dApps.
The role of the ATOM coin
ATOM is the internal coin of Cosmos, which also plays a key role in Tendermint Core.
The ATOM holder can participate in the staking and validation of blocks, vote for proposals that affect the development of the Cosmos network. The number of validators is limited — they can only be 125 network members who have the largest stakes in ATOM.
Currently, the validator is in 125th place with 18,642 delegated coins worth $188,284. Over time, the number of validators will grow to 300.
ATOM is a popular coin for staking.
ATOM is used to pay transaction fees (like "gas" in Ethereum).
98% of the ATOM commission goes to the validators, in proportion to the number of coins blocked by them, 2% goes to the reserve pool. In the future, it is planned to launch a Photon service token, which will be used only for commission fees. You can also pay the commission in native coins of blockchains launched in the Cosmos ecosystem.
Cosmos provides a huge functionality for the implementation of decentralized applications (dApps). However, there aren't many apps on Cosmos at the moment. The fact is that developers still have enough functionality of the blockchains of the last generation (Ethereum, Solana, Polygon, etc.) and they do not need to deal with Cosmos features.
At the moment, the Cosmos project looks quite promising and, as it seems to us, deserves attention.