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Why You Must Know About Cosmos the Internet of Blockchains and Atom Token

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Unknown Speaker 0:01
Welcome to the New To Crypto podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you, coming at you from the training center in the lifestyle design studio. Here’s your host Crypto Travels Michael.

 

Michael 0:52
Welcome to today’s show. People from over 70 countries and 500 cities around the world have listened to this podcast. And the show is just over two months old. So if you’re here and you’ve been here since the beginning, or if you’re just listening for the first time, I truly welcome you. I welcome you to the podcast. And without further ado, let’s jump into today’s episode. It’s all about Cosmos. So what is Cosmos and their ecosystem? Cosmos is an ever expanding ecosystem of interconnected apps and services built for a decentralized future. Cosmos is a decentralized network of independent parallel blockchains. Each is powered by a BFT consensus algorithm, like Tendermint consensus. In other words, Cosmos is an ecosystem of blockchains that can scale and interoperate with each other. Before Cosmos blockchains were siloed and unable to communicate with each other. They were hard to build and could only handle a small amount of transactions per second. Cosmos solves these problems with a new technical vision. In order to understand the vision, we need to go back to the fundamentals of blockchain technology.

 

I like how the crypto exchange Kraken words the following: The vision of Cosmos Blockchain 3.0. The vision of Cosmos is to make it easier for developers to build block chains and break the barriers between blockchains by allowing them to transact with each other. The end goal is to create an Internet of blockchains, a network of blockchains able to communicate with each other in a decentralized way. With Cosmos blockchains can maintain sovereignty, process transactions quickly and communicate with other blockchains in the ecosystem. This vision is achieved through a set of open source tools, like what they call Tendermint, and the Cosmos SDK, and IBC designed to let people build custom, secure, scalable and interoperable blockchain applications quickly. Let’s take a closer look at some of the most important tools in the ecosystem, as well as the technical architecture of the Cosmos network.

 

Cosmos is an open source community project initially built by the tendermint team, everyone is welcome to build additional tools to enrich the greater developer ecosystem. Tendermint BFT is a solution that packages the networking and consensus layers of a blockchain into a generic engine, allowing developers to focus on application development, as opposed to the complex underlying protocol. As a result, Tendermint saves hundreds of hours of development time. T endermint also designates the name of the Byzantine fault tolerant, also known as BFT consensus algorithm used within the tender mint BFT engine. The tender mint BFT engine is connected to the application by a socket protocol called the application blockchain interface. This protocol can be wrapped into any programming language, making it possible for developers to choose a language that fits their needs. So it is public or private blockchain ready it offers high performance, it offers instant finality, and it provides excellent security.

 

Cosmos is called the Internet of blockchains. By its founding team, Cosmos aims to create a network of crypto networks united by open source tools for streamlining transactions between them. It’s this focus on customizability and interrupt ability that sets Cosmos apart from other projects, rather than prioritizing its own network. Its goal is to foster an ecosystem of networks that can share data and tokens programmatically, with no central party facilitating the activity. Each new independent blockchain created within Cosmos is called a zone, it’s then tethered to the Cosmos hub, which maintains a record of the state of each zone and vice versa. The Cosmos hub, a proof of stake blockchain is powered by its native ATOM cryptocurrency. So how does Cosmos work? The Cosmos network consists of three layers application layer, it processes transactions and updates the state of the network. The networking layer allows communication between transactions in blockchains. And the consensus, which helps nodes agree to the current state of the system. So in order to tie all of three of the layers together and allow developers to build blockchain applications, Cosmos relies on a set of open source tools. Tendermint is one of those tools, Tendermint, Byzantine fault tolerance, I’m going to share the links of of these detailed parts so you can read and see visually, as opposed to just hearing the audible portion from me.

 

So let’s break down and unpack who created Cosmos. Well, the inter chain Foundation did. It’s known as ICF and it’s a Swiss nonprofit that funds open source blockchain projects. It’s this organization that helped develop and launch Cosmos. Developers Jay Quan and Ethan Buckman co founded the Cosmos network in 2014, at the time creating Tendermint The consensus algorithm that would go on to power Cosmos. So those two later authored the Cosmos whitepaper, and released its software in 2019. The inter chain foundation held a two week initial coin offering known as an ICO for the ATOM token in 2017. And at that time, they raised over $17 million. Tendermint Inc. also raised $9 million to continue development of the project through series a funding round in 2019. Currently, the native token ATOM, the market cap for that token is just over $5.6 billion. There are just over 220 million tokens currently in circulating supply, and the ATOM token is currently trading at just over $25 per token. According to their site, Cosmos.network there are 249 apps and services currently built on Cosmos. I believe their ecosystem will continue to grow. They’re doing great things in the industry and I hope you liked today’s episode. If you did, be sure to like and subscribe to the show. And stay tuned here tomorrow for another special episode. Until then, make it a great day.

 

Unknown Speaker 9:04
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By: cryptotravelsmichael
0

Table of Contents

Welcome back to another podcast episode! 

Today’s discussion is centered around yet another blockchain project, but this one is similar to Polkadot. 

If you guessed Cosmos, then you are correct! Let’s learn more about why this is unique:

What Is Cosmos? 

In 2014, the Tendermint firm released the Cosmos blockchain as a product. 

Cosmos was formed as a response to some of the shortcomings with Bitcoin’s proof-of-work algorithm, limited scripting language, and lack of flexibility at the time, akin to a handful of other crypto initiatives at the time.

The goal of Cosmos is to make it possible for any blockchain to interact, share data, and transact with any other blockchain. Cosmos aims to provide scalability, usability, and interoperability, all of which are necessary for blockchain technology to gain widespread acceptance.

There’s little to no need for these networks to compete viciously to be the one blockchain that rules them all by allowing many blockchains to interoperate. 

Rather, a number of independent blockchains can live harmoniously, each with its own set of use applications and benefits.

Cosmos is a full technology stack that does more than just link and distribute data between different blockchains. 

They’ve also shortened the development process so that developers can design their own unique blockchain in months, if not weeks, rather than years.

Inner-Workings Of Cosmos

The Tendermint BFT engine is a network component that enables developers to create blockchains without needing to construct them from zero.

The Tendermint BFT method is used to protect the network, validate transactions, and commit blocks to the blockchain by a network of computers running the Cosmos software. The Application Blockchain Interface is the protocol that it uses to connect to applications.

Tendermint Core is the heart of Tendermint, a proof-of-stake (PoS) governance mechanism that keeps Cosmos Hub’s distributed network of computers in synchronicity.

Validator nodes must first stake ATOM before they can power the network and vote on updates. To become a validator, a node must rank in the top 100 staking ATOM nodes. The quantity of ATOM staked determines voting power.

Users also may transfer their tokens to other validators, allowing them to vote even while earning a share of the block reward.

Cosmos SDK is used to make it easier to construct multi-functional apps on Cosmos and to make it more appealing to developers. It’s an open-source, modular platform that lets programmers create interoperable, bespoke blockchains.

Before Cosmos, blockchains were siloed and unable to communicate with each other, they were hard to build and could only handle a small amount of transactions per second. Cosmos solves these problems with a new technical vision.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is Cosmos
  • History and ICO
  • Features of Cosmos
  • Founders of Cosmos
  • The ATOM token

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

Cosmos is a project that intends to build a network of parallel blockchains that can scale and communicate with one another. The recently released Inter-Blockchain Communication (IBC) protocol can now be used with Cosmos-based blockchains.

Cosmos is a significant contestant in the realm of blockchain interconnection since it uses this industry standard to facilitate inter-blockchain communication.

Essentially, Cosmos makes a compelling case for solving the challenge of blockchain interconnectivity.

Its long-term success is largely dependent on the Cosmos technology’s long-term performance and the adaptability of its approach in reaction to competitors’ actions.

It’s feasible that there’s enough area in the interconnection market for numerous initiatives to meet more specific demand.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

I’d love to hear from you! Email me at show@newtocrypto.io and let’s chat.

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Helping those to navigate the crypto landscape with pinpoint accuracy.

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