What is Cosmos (ATOM)? The beginner’s guide

Cosmos is a decentralized network of independent parallel blockchains, each of which is based on BFT consensus algorithm, such as Tendermint consensus.

The platform focuses on compatibility with other blockchain networks. The Cosmos network is able to interact with other cryptocurrencies and applications, which other blockchain networks can’t achieve.

In the digital assets industry, many projects seek to establish themselves as leaders in their respective industries. However, with so many different projects, it is difficult for individual blockchain objects to interact with each other. Today, Ethereum cannot communicate directly with Bitcoin and vice versa. This situation creates a tendency for blockchains to exist as isolated repositories and rarely share any information with each other.

If the link between the blocks was maintained, it would open up a world of opportunities for the industry. Some features include cross-chains of smart contracts and the exchange of tokens without the use of third-party exchange. It is difficult to imagine a world in which various platforms supporting our digital economy cannot communicate with each other.

Cosmos aims to become the “Internet of blockchains”. Just as the TCP / IP protocol suite provides Internet compatibility, Cosmos is trying to establish a standard blockchain for inter-circuit communication.

The architecture behind Cosmos consists of several autonomous blockchains, called “Zones,” attached to a central blockchain, known as the “Hub”. Zones are built using the Tendermint protocol and the Cosmos standard and can be written in any coding language.

Launching a Zone is similar to launching an ERC20 token on Ethereum. Zones can also function as a link between Cosmos and other blockchains, such as Ethereum or NEO. The versatility of Zones allows them to interact with other blockchains, as well as with the central Cosmos Hub. Zones are one of the strengths of the Cosmos and make a major contribution to its interoperability.

Cosmos Features

The Cosmos project has several important technical features that allows it to achieve interaction goals:

• scalability;
• byzantine PoS algorithm;
• cross blockchain bridges;
• decentralized exchange.

Scalability is an important feature of any project aimed at supporting future application development. Cosmos plans to increase its scalability using various other compatible networks connected through Zones. These Zones operate in parallel to increase transaction throughput. Each Zone has its own register, agreed protocol and main language.

Main Cosmos hub is a blockchain that helps to maintain the state of each Zone. Each Zone helps to maintain the state of the hub. This method supports communication between the circuits. This method is somewhat similar to sharding. Although, each shard in Cosmos is another blockchain that can fail without affecting the network as a whole.

Byzantine PoS is a Proof-of-Stake variant of the Cosmos project, based on pBFT. As the name suggests, this method is a mixture of Proof-of-Stake elements in combination with the Byzantine consensus.

The method is based on a set of semi-trusted nodes. As long as more than a quarter of the voting nodes are fair, the protocol will work without problems. Consensus nodes needs to provide a share of ATOM tokens as security. Any node that detects that it is acting with malicious intent will be removed from the system and its ATOMs broken down will be burned.

In Cosmos, Zones act as bridges between blockchains, which function as a communication gateway between incompatible blockchains, ultimately checking transactions between them.

Validators working on cross-chain bridges (Zone blockchains) are synchronized with the main Cosmos Hub. However, they also run a full node on the opposite blockchain on the other side of the bridge to confirm that the corresponding amount was fixed. “Original” tokens are blocked in a scenario with several signatures until the bridge checker unlocks them and, accordingly, destroys the tokens in the blockchain with cross bridges. This allows you to transfer digital assets in different chains.

Regarding the ability of Cosmos to function as a decentralized exchange: the main blockchain of Cosmos can function as a decentralized exchange, testing atomic permutations between the Zones. This is an important feature expected from collaborative projects.

ATOM Token

ATOM is used to pay transaction fees at the Cosmos blockchain, as well as to participate in the consensus process.

Validators bet on ATOM to earn both the reward for blocking and the transaction fee. To become a validator, your ATOM wallet must be in the top 100 by the number of tokens in the network.

Conclusion

Cosmos Blockchain Network is an innovative solution that aims to catalyze powerful and significant changes in the blockchain ecosystem. Cosmos Blockchain Network allows you to create a global interconnected blockchain network free from a “centralized decentralized” intermediary.