Cosmos: The Internet of Blockchains (2024)

FAQs

What is the internet of Blockchains cosmos? ›

Cosmos (ATOM) tackles the problem of blockchain interoperability through its innovative technology called the Inter-Blockchain Communication (IBC) protocol. IBC allows secure and instant communication between different blockchains, enabling them to exchange data and assets in a trustless manner.

The majority of Cosmos SDK-based chains employ a Proof-of-Stake (PoS) consensus mechanism. The Cosmos Hub is a PoS chain where the amount of staked ATOM tokens determines the validator set. Validators are responsible for proposing, validating, and committing blocks to the blockchain.

The Cosmos ecosystem offers several unique benefits including high scalability through the use of the Tendermint consensus algorithm, enhanced interoperability facilitated by the IBC protocol, and flexibility through its modular architecture with the Cosmos SDK.

Cosmos Has a Solution to the Blockchain Scalability Problem

Scalability is a continuing problem for all major blockchains, but Cosmos solves this problem by allowing each zone to process transactions in parallel without compromising the speed or throughput of other zones.

Developers Jae Kwon and Ethan Buchman co-founded the Cosmos network in 2014, at the time creating Tendermint, the consensus algorithm that would go on to power Cosmos.

Jae Kwon is a prominent figure in the blockchain space, renowned for his expertise as a software architect and his pivotal roles as the Founder of Tendermint and the Co-founder of Cosmos.

Cosmos offers a developer-friendly design to build sovereign blockchains quickly and cheaply. Its interoperable system allows simple communication between blockchains which Ethereum does not allow unless the rather complicated and unsecure exchange of wrapped tokens is used.

Cosmos enables developers to easily build and deploy new blockchain applications while improving the performance and security of existing blockchain networks. Cosmos has its own cryptocurrency called the ATOM token, which is used for transaction processing and network security.

The current estimated reward rate of Cosmos is 13.95%. This means that, on average, stakers of Cosmos are earning about 13.95% if they hold an asset for 365 days. 24 hours ago the reward rate for Cosmos was 13.90%. 30 days ago, the reward rate for Cosmos was 13.58%.

Why Cosmos is better than Ethereum? ›

While Ethereum operates as a single blockchain, Cosmos allows for the creation of multiple independent blockchains within its ecosystem. This flexibility enables developers to tailor their blockchains specifically to their use cases. Whether it be gaming, enterprise solutions, or beyond.

C# Open Source Managed Operating System (Cosmos) is a toolkit for building GUI and command-line based operating systems, written mostly in the programming language C# and small amounts of a high-level assembly language named X#.

All in all, the Cosmos ecosystem is an innovative distributed network that unites several independent chains into an ”internet of blockchains” or ”Interchain”! For similar articles exploring other Web3 ecosystems, read our Solana ecosystem guide or dive into the Ethereum ecosystem in 2024.

Why is Cosmos going down? ATOM's bearish movement can be attributed to a combination of factors: Market FUD (Fear, Uncertainty, Doubt) worsening, leading to increased selling pressure on the asset. Investors shifting their focus towards new on-chain projects, causing a diversion of funds away from ATOM.

Most importantly, the Cosmos SDK has already been used to build many application-specific blockchains that are already in production. Among others, we can cite Cosmos Hub, IRIS Hub, Binance Chain, Terra or Kava.

An IoT-enabled blockchain can store the temperatures, position, arrival times and status of shipping containers as they move. Immutable blockchain transactions help ensure that all parties can trust the data and act decisively to move products quickly and efficiently.