Cosmos Network is a promising blockchain-based project started by Jae Kwon and Ethan Buchman in 2016. With its native token Atom at the center, Cosmos provides a scalable solution for deploying application-specific blockchains, as well as ground-breaking interoperability possibilities. Its mainnet is set to launch in the spring of 2019.
In fact, Cosmos is built on top of Tendermint, an application platform with two major components – Tendermint Core and ABCI, short for application blockchain interface. The first one is the network’s consensus engine that employs a Bonded Proof-of-Stake consensus algorithm based on studies in Byzantine Fault Tolerance. It was first created by Mr Kwon in 2014 as a far more efficient approach to validation than algorithms in blockchains such as Bitcoin and Ethereum, as it allows near-instant confirmations at low cost. On the other hand, developers are free to code in any language they prefer with ABCI, which coupled with the Cosmos SDK framework gives them ample opportunities that simply weren’t available before. Compared to other Dapp platforms out there that use blockchain-wide virtual machines, Cosmos is a much more powerful, secure and flexible alternative.
While Tendermint is in charge of consensus and applications, the main feature of Cosmos is interchain interoperability that is enabled with the Inter Blockchain Communication (IBC) protocol. Zones are any application-specific blockchains in the Cosmos Network, and they can transfer data to any other blockchain connected to the same Hub, and all of those Hubs are in turn interconnected through the Cosmos Hub, the centerpiece of the entire network. In practice, this also means that any existing blockchain can be replicated within the platform as a Zone, and then operated with more efficiency and without the need for an exchange. One such project is Ethermint, which provides the same functionality as Ethereum but cheaper, faster, and more scalable.
As the main token of the Cosmos Hub, Atom can be used for staking and voting on the proposals for the platform’s development, which are essential for Cosmos to be truly decentralized. Validators in Cosmos use cryptographic signatures to validate blocks, while the other users can delegate their Atoms to them to receive a portion of their rewards and block fees. At the same time, both of those groups can be punished (slashed) if the validator shows any malicious behavior, which promotes responsible decision making when selecting a delegate.
A number of established projects have already been implemented using Cosmos SDK even before the mainnet launch, among them Binance Chain, e-Money, IRISnet, and others. Since Atom is at the heart of this “Internet of Blockchains”, it is therefore expected to grow in valuation and popularity in the upcoming years.
If you want to invest in Cosmos or simply add it to your portfolio, choosing a good wallet is the best way to secure your digital assets. Magnum Wallet provides you with a user-friendly interface to buy, sell, send and receive your cryptocurrencies. Some of the features include hardware wallet support, an instant built-in exchange with low fees and support of over 700 different coins and tokens. Store your Atoms with Magnum and enjoy full control of your funds at any time.