Cosmos: The Internet Of Blockchains
Cosmos: The Internet Of BlockchainsBy Kapil Rajyaguru
One of the main concerns with blockchain networks is the lack of interoperability, meaning they do not communicate with each other.
The Cosmos blockchain was developed to solve the interoperability problem by facilitating communication between blockchains without relying on a centralized server.
Cosmos is widely considered as the Internet of Blockchains by its founders who wanted to craft an interoperable platform of open source blockchains that could simplify transactions between them.
Cosmos has its own Proof-of-Stake (PoS) network, dubbed Cosmos Hub, which keeps track of other networks’ states.
What is ATOM?
Cosmos (ATOM) is the cryptocurrency that powers and secures the ecosystem of blockchains designed to scale and interoperate with one another.
Inception of Cosmos
Jae Kwon, Zarko Milosevic, and Ethan Buchman are the key Cosmos developers.
Hey started collaborating on the Cosmos project in 2014, powered by the Tendermint consensus protocol.
They published Cosmos white paper in 2016 and the Cosmos network itself came online on March 13, 2019.
How Does Cosmos Work?
The main purpose of the Cosmos network is to move transfers from one smart contract to another.
For example, Ajay wants to send 10 BTC from blockchain A to blockchain B. Coins are first deposited into chain A and locked, with validation proof sent to chain B.
Then, chain B verifies if over two-thirds of chain A validators have confirmed the locked amount.
After this proofing, Ajay’s 10 BTC are unlocked and now available on chain B, in whichever dApp Ajay picked.
Application
Cosmos is the first entirely free platform to enable interoperability between various systems including Binance Chain, Terra and Crypto.org, to name a few, with over $151 billion of digital assets under management.
Cosmos has been used for CBDC pilot programs, stablecoin (USDF) transfers, and by U.S. based banks for payment versus payment (PvP) settlements and multi-currency exchanges.
To simplify, payment versus payment (PvP) is a settlement mechanism that ensures that the final transfer of a payment in one currency occurs if and only if the final transfer of a payment in another currency or currencies takes place.
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