Lets look at how cosmos is disrupting new era of blockchain
Cosmos is a heterogeneous network of many independent parallel blockchains, each powered by classical BFT consensus algorithm like Tendermint.
Cosmos enables the blockchain to communicate with each other. Cosmos also solves the problem of TPS limit of others blockchains which has been challenged due to drastic increase in number of users in past few years.
Existing Blockchains are facing one of the biggest challenges of scalability, usability and sovereignty.
The fact that scalability is such a massive problem right now across the board doesn’t necessarily mean that there aren’t any viable solution to it, there are numerous Layer-2 solution being developed all utilizing different technologies and ideas to create more efficient networks.
The major problem is implementing these solutions to a network as big as Ethereum which requires a huge team of participants. And even if all these solutions get implemented in Ethereum 2.0 doesn’t necessarily mean that it will give the market a truly decentralized and efficient network.
This major problem and lack of faith in new incoming solutions to existing blockchains leads to creation of multi-chain blockchain networks, all of which set out to solve Ethereum lack of scalability.
In past few years few of the multichain networks like Cosmos, PolkaDot and Avalanche managed to get a lot of traction and recognitions.
Each of these three blockchain took on a different approach to solve same problems i.e., Ethereum lack of scalability and low latency.
So what actually cosmos is and how it is trying to solve these problems?
Cosmos aims to create an “Internet of Blockchains,” where any blockchain is able to communicate, share data, and transact with any other.
In brief
· Cosmos aims to create an “Internet of Blockchains” by improving interoperability.
· Its Inter-Blockchain Communication (IBC) protocol launched in February 2021.
Lets see what’s Cosmos area of focus and aim:
Cosmos is most similar to the Polkadot project, which also seeks to create an ecosystem of interoperable blockchain networks. However, unlike Polkadot, Cosmos prioritizes the sovereignty of independent blockchains, meaning they must secure themselves, have their own governance, and run their own validators.
Cosmos’ aim is simple: to enable any blockchain to communicate, share data, and transact with any other. By allowing many different blockchains to interoperate, there is less of a need for these networks to ruthlessly compete to be the one blockchain to rule them all. Instead, many different blockchains can coexist with their own specialized use cases and advantages.
Cosmos is a complete technology stack that goes beyond simply allowing different blockchains to connect and share data with each other. They have also created a streamlined development process that allows developers to create their own custom blockchain in months or even weeks, instead of years.
The combination of a relatively easy blockchain development process with the ability of new and old blockchains to interoperate should more application-specific and less general-purpose blockchains are developed.
What else is different?
Blockchains communicate with each other in the Cosmos ecosystem through a hub and zone model. For example, if you wanted to connect Ethereum and Bitcoin through Cosmos, both blockchains would need to connect to their own zone. The Ethereum zone and Bitcoin zone would then each connect to a hub and through this shared hub, Ether and Bitcoin could be transferred between them.
The native tokens of the Cosmos network are called ATOMs. Holding ATOMs gives the holder the ability to stake and validate blocks, vote on governance issues, and pay for transaction fees.
dApps built on Cosmos
Cosmos is popular among dApp developers to build efficient cross-chain decentralized applications (dApps).
CONCLUSION:
Here is a quick recap of what Cosmos is in three concise points:
1. Cosmos makes blockchains powerful and easy to develop with Tendermint BFT and the modularity of the Cosmos SDK.
2. Cosmos enables blockchains to transfer value with each other through IBC and Peg-Zones, while letting them retain their sovereignty.
3. Cosmos allows blockchain applications to scale to millions of users through horizontal and vertical scalability solutions.
More than anything, Cosmos is not a product but an ecosystem built on a set of modular, adaptable and interchangeable tools. Developers are encouraged to join the effort to improve existing tools and create new ones in order to make the promise of blockchain technology a reality. These tools are the foundation needed to create the decentralized internet and global financial system of tomorrow.
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