What is Cosmos?

What is Cosmos? How does it work? How strong does this project develop? Let's find out the answer with Market247.io through the article below.

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Cosmos is a network of sovereign blockchains that securely transport data and value using IBC, an interoperability protocol built after TCP/IP.

After learning the definition of Cosmos, let's discover what is cosmos blockchain's purposes.The Cosmos blockchain was created to allow distributed ledgers to communicate without relying on a centralized server. The Cosmos white paper was published in 2016, and the network quickly became known as the Internet of blockchains by its founders, who wished to build an interoperable platform of open-source blockchains that could streamline transactions between them.

So what is Cosmos's mechanism? The Cosmos Hub, commonly referred to as "Gaia," is a proof-of-stake chain with a native coin, ATOM, that serves as a hub for IBC packet routing between blockchains within the Cosmos network. The bulk of blockchains in the Cosmos network, including the Cosmos Hub, are protected by the Byzantine Fault-Tolerant (BFT) Proof-of-Stake consensus algorithm Tendermint.

Cosmos, with over $151 billion in digital assets under management, is the first entirely free platform to enable interoperability between different systems, including Binance Chain, Terra, and Crypto.org, etc.

What is Cosmos's technology?

After learning What is Cosmos, you may curious about the technology of Cosmos. Cosmos is intended to function as a network of zones and hubs. Zones are application-specific blockchains with autonomous security and governance models, whereas hubs are intermediary blockchains that monitor the state of connected zones and facilitate asset transfers between them. Cosmos is not a blockchain, but rather a toolkit for creating new blockchains. Cosmos Hub, on the other hand, is the first PoS blockchain that serves as a hub between zones, has a multi-asset ledger, and allows subsequent zones to interact with each other via the inter-blockchain communication protocol, IBC.

Tendermint Core, a secure consensus protocol that provides quick finality and is easily adaptable with Proof-of-Stake (PoS) blockchain, powers their interaction. Interacting with the IBC protocol necessitates chains having a fast finality consensus mechanism, which means Cosmos cannot use IBC for asset transfers between proof-of-work blockchains like Ethereum and Bitcoin. To overcome this limitation, Cosmos introduces account-based blockchains known as peg zones (Peggy) and provides fast finality by implementing finality thresholds on blockchains with probabilistic finality.

While Tendermint serves as the networking and consensus layer for the application-specific blockchains built within the Cosmos network, Cosmos SDK provides a framework for building the application layer through SDK modules. Because the consensus mechanism and application layer in Cosmos blockchains are separate informational domains, changes in the state-machines (e.g., blockchain transactions) are communicated to the Tendermint consensus engine via the Application Blockchain Interface (ABCI).

Another consequence of this separation is that the blockchains on the network are not constrained by strict rules when it comes to selecting a consensus mechanism. They do not need to use the vanilla version of Tendermint and can modify the consensus mechanism to make it suitable for application-specific purposes.

Cosmos Token and Tokenomics

You might wonder What is Cosmos Token. Actually, Cosmos (ATOM) is the cryptocurrency that powers and secures the ecosystem of blockchains that are designed to scale and communicate with one another.

Key metrics of ATOM

Token Name: ATOM
Blockchain: Cosmos Hub
Consensus Mechanism: PoS
Token type: Utility Token
Market Cap: $3,326,348,446
Circulating Supply: 286,370,297.00 ATOM

ATOM Token Utilities

Since the PoS consensus mechanism requires validators to possess ATOM in order to participate in the validation process, ATOM's primary function is to ensure the security and longevity of the Cosmos Hub network.

To ensure network security, ATOM token holders can stake their tokens in exchange for a share of the network transaction fees and block rewards distributed for validation.

Additionally, the token is required for participation in Cosmos Hub governance. By keeping ATOM in their wallets, ATOM holders can delegate their tokens or participate actively in governance.

ATOM Token Distribution

The foundation divided beneficiaries of these newly created ATOMs into four distinct blocks: Private Contributors, Public Contributors, All in Bits Inc (AiB), and the Interchain Foundation (ICF).

In exchange for their investment of $1,327,472, the strategic and early adopters received 7.1% of the original supply, equal to 16,856,718.97 ATOMs, or 7.1% of the initial supply.

In exchange for $300,000, the seed contributors received 5% of the initial supply, or 11,809,947.91 ATOMs.

In exchange for $16,029,305.06 gathered in BTC or ETH, the public donors received 67.9% of the initial supply, or 160,293,050 ATOMs.

All in Bits Inc (Tendermint Inc.) earned 10% of the original supply, or 23,619,895.81 ATOMs, for designing the open-source IP used by Cosmos Network.

ICF earned 10% of the initial supply, or $23,619,895.81, for Web 3.0 research and development. At the genesis, 236,198,958.12 ATOMs were distributed to 984 accounts.

Cosmos Supply Schedule

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Every block, the targeted annual inflation rate of Atom is adjusted. Inflation is also susceptible to a rate adjustment (positive or negative) based on the distance from the existing fixed 67% stake participation ratio. Annual inflation is restricted between 7 and 20 percent. If more than two-thirds of the Atoms are staked, atom block payouts will reduce to a minimum of 7% annualized inflation. If fewer than of the Atoms are staked, atom block payouts increase gradually up to a maximum yearly inflation rate of 20%.

Investors of Cosmos

Cosmos is backed by many well-known venture capitals, as follows.

1Confirmation
Block0
Blocktree Capital
Continue Capital
Dokia Capital
Dragonfly Capital
HashKey
HyperChain Capital
KR1
Outlier Ventures
Pantera Capital
Polychain Capital
Waterdrip Capital

Cosmos Contributors

The team working on Cosmos Network is led by co-founders Ethan Buchman, Jae Kwon and Peng Zhong.

Screen Shot 2022-10-24 at 23.42.16.png

Roadmap of Cosmos

March 2019

It marked the introduction of the Cosmos Hub and its Tendermint Proof-of-Stake (PoS) network.

April 2019

The Cosmos Hub's on-chain governance system enabled token transfers around one month after its introduction

February 2021

Stargate implemented a comprehensive set of enhancements to the Cosmos Hub, including new interoperability capabilities and other performance enhancements. It required the upgrade from the third version of the Cosmos Hub (Cosmos Hub 3) to the fourth version (Cosmos Hub 4).

March 2021

Cosmos Proposal 41 facilitated the transfer of assets on the Cosmos Hub utilizing Interchain Standard 20 (ICS20). IBC asset transfers permit the availability of IBC assets in the Bank module of the Cosmos Hub and ATOM on Zones connected to IBC (Inter-Blockchain Communication).

July 2021

Gravity DEX was introduced to increase the liquidity of Cosmos Hub tokens.

The year 2022

In 2022, Cosmos is following the roadmap 2.0. So, what is the roadmap 2.0 of Cosmos? In general, C will enhance the functionality of the Cosmos Hub by focusing on key areas such as liquidity, economic security, usability and engagement – giving the Hub a fresh coat of paint and making it more attractive to community members.

Cosmos in Funding Rounds

cosmos funding round

Conclusion

Hopefully, you already have the answer for What is Cosmos through today's article. You also can learn more about Cosmos here.

Website: https://cosmos.network/
Twitter: https://twitter.com/cosmos
Telegram: https://t.me/cosmosproject
Reddit: https://www.reddit.com/r/cosmosnetwork/

What is Cosmos? - FAQs

Why is the Cosmos Network Secured?

Cosmos implements a consensus process based on proof-of-stake. Validator nodes with a larger ATOM stake are more likely to be selected to verify transactions and win rewards. Nodes that are discovered to be acting dishonestly are punished, and they may lose the tokens they have at stake

Where to Buy Cosmos (ATOM)?

Cosmos is now available on a number of major exchanges, with the most popular being Binance, Coinbase, and OKEx. It is possible to locate trading pairings with a variety of fiat currencies, and you may learn more about the conversion procedure from dollars and euros to cryptocurrencies.

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