At the end of 2021, the crypto market began lively with new interoperability-based blockchain projects.
This interoperability feature is generally also juxtaposed with multichain systems, where one project has more than one network or blockchain.
One of the projects that have caught the attention of crypto investors is Cosmos due to its extensive ecosystem and relatively new technology.
What is Cosmos?
Cosmos, which claims to be an internet-based blockchain, is a network that prioritizes interoperability and multichain features.
Like other new blockchains, Cosmos aims to create a blockchain with high scalability and communication capabilities.
This project uses the multichain feature to allow other blockchains to communicate with other blockchains.
The ultimate goal is to create a communication system between blockchains that allows all blockchains in the crypto market to be connected.
This blockchain uses a multichain-based zoning system that each operates with a Proof of Stake Byzantine Fault Tolerant (BFT) system.
The speed of this blockchain is recorded at 40,000 to 50,000 transactions per second in total.
Cosmos Hub is the first blockchain in this multichain network, with an original coin called ATOM.
Tendermint Core created cosmos; a blockchain company focused on making Proof of Stake.
This project was created and published in a journal called “A Network of Distributed Ledgers” in 2016.
Tendermint Core itself received assistance from The Interchain Foundation, which is a company originating from Switzerland.
Tendermint Core and The Interchain Foundation are working to build a network for developers to build blockchain and intelligent contracts quickly. The second main goal is for all blockchains to interact with each other through the Cosmos network.
Cosmos Blockchain Mechanism
ATOM staked, the higher an individual is likely to be selected as a validator and get rewarded.
This network has a different mechanism in the second layer, the Multi-Asset Proof of Stake mechanism. The name of this layer is commonly referred to as the Cosmos Hub.
At this layer, Cosmos Hub has a network of connections called zones whose purpose is to communicate with other blockchains. Broadly speaking, this multichain Blockchain mechanism belongs to the Proof of Stake-based blockchain group.
However, the difference between this blockchain network is that there are two layers, in contrast to a typical blockchain which only has one layer.
In the first layer, this network has a validator which the validator must stake ATOM.
Later, just like other Proof of Stake blockchain mechanisms, the validator will be chosen randomly, depending on the number of ATOMs that have been staked.
The more
These Zones have a validation and data transfer mechanism called Tendermint Byzantine Fault Tolerance (BFT), created by Terdermint Core.
So when communicating with tokens or intelligent contracts from other blockchains, those tokens or smart contracts will enter through zones and then be validated on Cosmos Hub.
If you want to move to another blockchain later, the token or intelligent contracts will move to other zones after Cosmos Hub.
So that Cosmos Hub can act as a transit point. This also makes the importance of a multi-asset system; as a result, Cosmos Hub can accept any asset from any blockchain.
In conclusion, the first layer of Cosmos Blockchain can move as a blockchain can, but the second layer can be used to interact with other blockchains.
All this is done with several consensus technologies such as Tendermint Mechanism, BFT Algorithm, Cosmos developer tool (SDK), and Inter-Blockchain Communication Protocol.
Cosmos Blockchain Development
The Cosmos ecosystem has grown relatively large and rivals several large blockchains such as Binance Smart Chain and Solana.
More than 300 projects are currently working on the Cosmos Blockchain Ecosystem, with their rapid adoption since 2016.
The significant growth at this time is the Inter-Blockchain Communication feature or the second layer of its network that functions to interact with other blockchain ecosystems.
Several large blockchains, such as Ethereum, have been integrated into the second layer of the Cosmos Blockchain.
As a result of this feature, the transaction frequency on the Cosmos network has exceeded 1.5 million transactions with varying amounts.
In addition, one of the advantages of the ecosystem is the existence of a decentralized private exchange, namely Gravity DeX.
Most of Cosmos’ transaction volume occurs on Gravity DeX, which makes the Cosmos Decentralized Finance ecosystem quite crowded.
ATOM Coin
Remember that Cosmos has an original coin called ATOM, which is currently increasing in interest.
ATOM is ranked 25th in market capitalization with a total capitalization of $8.4 billion or Rp120.7 trillion.
The total inventory of ATOM itself is at 280.3 million ATOMs, and the current number has exceeded 80% of all existing ATOMs.
In terms of allocation, the distribution appears safe because the developer controls only about 20%.
Of that 20%, 10% is controlled by Tendermint Core, and the Interchain Foundation owns 10%.
All the ATOMs controlled by the initial investors have been scattered in the market for the vesting period, so price manipulation becomes increasingly impossible.
In terms of token economics, ATOM looks safe, but before buying, it is always a good idea to do a personal analysis.
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