Cosmos Definition and Statistics

Cosmos Price
Cosmos Price

As a blockchain protocol, Cosmos is extremely significant. Interoperability is a fundamental problem in decentralized communication across independent blockchains. The phrase interoperability refers to a network’s smooth and direct communication of blockchains and data structures in accordance with common standards. The long-term goal is to eliminate the need for a third party in the form of a trading platform, exchange, or processing point to exchange data and conduct transactions. Cosmos is the second biggest shareholder in the area, in addition to the Polkadot network.

Cosmos was created by a consortium of developers from around the world and is supported by the Interchain Foundation. Since 2014, Tendermint’s development team has been in charge of the underlying software and integrates new technologies into the Cosmos protocol. Tendermint is also the name of Cosmos’ fault-tolerant consensus technology (Byzantine Fault Tolerance (BFT)), which enables the network’s blockchains to build their own stateful apps.

To create a shared consensus on a new block, the protocol employs well-known validators. The network aims for a two-thirds majority of validators in this case. As a result, performance and liveliness suffer to some amount, yet it is necessary for network security reasons.

Cosmos (ATOM) from a technical perspective

The interoperability of a network can be described in a variety of ways. In the case of Cosmos, the application layer is important to discuss in addition to the consensus protocol. From a technological standpoint, it is mostly responsible for modifying the state of the blockchain and completing the Cosmos network. The Application Blockchain Interface (ABCI) is a connection between the consensus protocol and the altered item (data structure, blockchain). The ABCI has unique authority to modify the network’s status, ensuring a high level of security.

The Inter Blockchain Communication Protocol ensures interoperability at Cosmos (IBCP). The Cosmos hub, a parent main chain that governs communication, is connected to all chains in the network. The hub-and-spoke model is what it’s called. Because this is the only method to ensure interoperability and security, it is critical that every new blockchain in the network accepts the common standards.

The Cosmos network can join both public and private blockchain without restriction, similar to its main rival Polkadot. It can also interface with other blockchains, such as the Ethereum network, thanks to so-called peg zones. One of the most crucial components of an interoperability-oriented network is this. To allow validators to access nodes on the external platform, a uniform security model is necessary.

As a result, smart contracts may be implemented across numerous networks, and transactions could be sent directly without the use of a middleman. A Software Development Kit (SDK) has been issued to facilitate the widest possible adoption of Cosmos. Developers may utilize it to create their own Cosmos-based products.

The Future of Cosmos

Interoperable blockchain networks are thought to offer a lot of promise since they allow for decentralized data and transaction exchange across boundaries. A peek at the Cosmos network’s future reveals some intriguing advancements. It seems unlikely that the Cosmos and Polkadot networks will fight each other in a single battle. Rather, other scalable blockchain networks benefit the technology, allowing for a high level of security through interoperability.