What Is Cosmos (ATOM)?
The Cosmos ecosystem is comprised of networks and tools aimed at enabling the formation of interoperable blockchains. Cosmos Hub is a main chain that acts as a central database for compatible blockchain chains called Zones. The Zones are highly customizable, so developers have the freedom to define their own currency, along with custom block validation settings, and other relevant features.
A Cosmos blockchain is created by using the Cosmos SDK, which provides the fundamental building blocks required to develop a Cosmos blockchain. As the default consensus mechanism provided by Cosmos SDK, Tendermint Core implements a validator-based consensus mechanism that can be applied to a wide variety of Cosmos blockchains. However, each Zone has the option of choosing how exactly the validators are chosen for its blockchain.
In order to operate the mainnet of Cosmos Hub, the blockchain picks 100 validators from top of the list of nodes where ATOM, the utility currency of the blockchain, is staked. The amount of ATOM staked determines the validity of the votes of the validators. Each validator proposes a new block which is then voted upon by everyone else. Validating successful blocks will reward the validator with a block reward that will be shared with users backing their chosen validator.
ATOM is not only used as the Cosmos Hub's consensus method, but also as a payment method for transactions and participation in governance votes. It is also a requirement that the Validators are present when voting on proposals.
Introduction
The interoperability of a blockchain system has always been the key problem to resolve in the blockchain world, along with scalability. I can tell you that decade after the creation of the first Bitcoin blockchain, we in the blockchain industry today are able to build interoperable blockchain networks thanks to a variety of options. Along with its open-source developer tools, the Tendermint consensus mechanism, and the other many options available, Cosmos is among the most popular solutions available. Here we will explore why Cosmos has remained a popular choice and how it is enabling blockchains to work together better.
How does Cosmos (ATOM) work?
It is a project aimed at building a network of interoperable blockchains that differ in their technology and which aim to create a network of interoperable blockchains. Ethan Buchman and Jae Kwon founded Cosmos in 2014, which consists of a main network that is based on a Proof of Stake blockchain and customized chains called Zones.
Cosmos Hub serves as the main chain where assets and data are transferred between the zones through the network, while also providing a layer of security that is shared among all. This whole system uses Tendermint, which is Cosmos' custom consensus system, this general interface, and Tendermint itself as the means to work together. The network's synthetic currency ATOM is used to pay fees in Cosmos.
There are three different layers in the Cosmos network:
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Networking -Transact confirmations and other consensus messages can be exchanged between hub blockchains in order to facilitate communication.
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Application - The network is updated regarding the new state of transactions and balances.
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Consensus - Node organization is a way in which nodes agree on how to add new transactions.
In order to integrate the three layers mentioned above, we use a collection of open source tools and applications. For example, Tendermint provides a ready to use engine that encompasses the network and consensus layers in one package. Using Tendermint, blockchain developers only need to focus on the application layer, which means they can save money and time by focusing on the application layer.
What is Cosmos Hub?
In Cosmos Hub, a blockchain is utilized to connect the primary blockchain of Cosmos with customized blockchains referred to as Zones. Through the use of the Inter-Blockchain Communication Protocol (IBCP), the ZooKeeper keeps track of the state of each Zone. Any Zone connected to Cosmos Hub can easily exchange information using this protocol.
As the central hub of the ecosystem, the Cosmos Hub acts as an exchange point for IBC messages exchanged between the Zones. There are two types of IBC transactions: an IBCBlockCommitTx and an IBCPacketTx. First, a hash for the most recent block in any particular Zone is communicated. There is a second method that enables a Zone to verify that a packet of information that has been published by an application belonging to the sender has been sent legitimately.
Suppose two different DApps are attempting to communicate with each other within two different Zones. The IBC messages must be transmitted to Cosmos Hub, which acts as the central server for the record of interactions. Cosmos Hub is the platform that relays messages, and each Zone also records the outcomes of its interactions on its own blockchain. Therefore, a record of the activity is spread across three different blockchains. It is because of this capability of blockchains communicating with each other that Cosmos is known as "The Internet of Blockchains."
What are Cosmos Zones?
Cosmos has developed a custom blockchain called Zones, which can be used in a number of different ways. There is an alternative term for sidechains, which you may already know from blockchain projects such as Polygon, which have already taken off. Zones have the ability to authenticate their own transactions, mint their own tokens, and create custom developments. While there have been some differences, all Zones in the Cosmos system are still capable of interacting with each other, so long as they have permission to do so.
Zones are configured as Hubs and Spokes, where Hubs act as a router for different zones. There are a few Hubs that are popular, such as Cosmos Hub, but other Hubs exist as well. The Hub blockchain is entirely permissionless, which means that anyone can create a Hub blockchain or Zone. Although each Zone or Hub can refuse to allow other blockchains to connect to it, it does not have the right to do so.
What is Cosmos SDK?
Using Cosmos SDK, you can create custom blockchains based on an open-source blockchain development kit. There is a variety of pre-built modules which you can use with Cosmos SDK, but the default consensus protocol is Tendermint Core. Cosmos SDK for Blockchain describes the requirements and applies all the standards you would expect to find for building a blockchain when using the SDK. This makes the process of creating a blockchain considerably more simple and standardized.
With the addition of plug-ins, it is highly customizable, which means users can design new features and traits. Cosmos SDK enables you to create a public Proof of Stake blockchain as well as a permissioned Proof of Authority blockchain.
What is ATOM?
Astrom is Cosmos' native coin, and it can be used for three primary purposes:
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Users are required to pay their transaction fees with ATOM, taking into account the computational power required to complete the transaction.
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As well as being used for governance purposes, ATOM is also used to have a role in the Cosmos Hub. As you hold more ATOMs, the more influence you have on platform decisions that are made.
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As part of a consensus algorithm, coins are staked behind validators to reward them for their participation.
Unlike traditional cryptocurrencies, ATOM is an inflationary coin, and it was distributed through an Initial Coin Offering (ICO). There has been an increase in stakers due to Tendermint Core rewarding stakers with newly minted ATOMs. A real-time adjustment to the inflation rate is made according to the amount staked and the number of stakers.
What is Tendermint?
With Tendermint, applications can connect to Tendermint Core consensus engines via a tool (Tendermint ABCI) and a blockchain consensus mechanism (Tendermint Core). In Cosmos, Tendermint Core represents the default consensus protocol. Tendermint Core is also a BFT protocol (Byzantine Fault Tolerant). A BFT simply means that a new transaction can still be confirmed even when it is not cooperative or even if the participant is malicious.
Tendermint Core's nodes run working copies of the blockchain's data so that validators can run their own copies of the blockchain. Cosmos Hub allows for a maximum of 100 validators, so not every full node can act as a validator. Those who perform verification of transactions vote on the new blocks which will be included in the chain.
A validation node gains its position in the network by staking ATOM to become a node. As a result of this, the top 100 nodes by stake value can become validators, having voting power proportionate to the amount of ATOM staked. The ATOM can also be delegated behind validators in return for a part of the block reward for delegating the ATOM.
By using this mechanism, validators are encouraged to behave in a way that allows users to stake their ATOM behind more reliable options. In order to add new blocks, a group of 100 validators has to reach a consensus about each block through voting. The voting is a round-by-round process whereby proposals from a leader are gathered into blocks and then voted upon.
Why is Tendermint important?
1.Suitability for public and private blockchains. : In Cosmos blockchains, Tendermint (BFT) handles only the network and consensus layers. The document outlines how validators can agree on transactions and share information, but the approach still enables developers to customize their applications. It is up to each Zone how its validators are selected, and whether or not the blockchain is publicly accessible or privately accessible.
2. High performance. : Tendermint (BFT) has a block time of about one second as well as being capable of processing thousands of transactions in a single second.
3.Immediate transaction finality : Upon a block being created, a transaction is confirmed (as long as the majority of the validators are honest with each other) as soon as a block is created. Cosmos, when compared to blockchains like Ethereum (ETH) and Bitcoin (BTC), makes it possible for users to accept transactions with a lot less confirmations to the blocks.
4 Security. : There are easy ways to hold accountability as well as secure a reason why the blockchain forked.