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However, there\u2019s no need to wait to get involved in Cosmos and the yield farming opportunities that exist. You\u2019ll find out all about them in this ultimate guide, along with everything you need to know about the project, technology, wallets, bridges and much more.<\/p>\n
What is Cosmos?<\/h2>\n
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According to the project\u2019s website, \u201cCosmos is an ever-expanding ecosystem of interconnected apps and services, built for a decentralized future\u201d. It has been designed so that developers can easily launch new blockchains into the network and have them interoperate with one another.<\/p>\n
The main goals of the project are as follows:<\/p>\n
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- Allow for the easy creation of blockchains built on the Cosmos network.<\/li>\n
- Create an environment where blockchains can interoperate and exchange transactions.<\/li>\n
- Solve the scalability issue and enable cheaper fees.<\/li>\n<\/ul>\n
The Cosmos Network was co-founded by Jae Kwon, Zarko Milosevic and Ethan Buchman. It has been actively developing since 2014 but the official whitepaper wasn\u2019t released until 2016.<\/p>\n
Throughout this time, it has caught the attention of crypto enthusiasts for a variety of reasons. Firstly, in 2016, when the team won Shanghai Blockchain Week\u2019s \u201cMost Innovative Project\u201d. Then, in 2017, when Cosmos achieved one of the most successful fundraising events in history by raising $16.8 million in just 30 minutes.<\/p>\n
Cosmos has also attracted investment from several major names in crypto, including Paradigm, Bain Capital and 1confirmation.<\/p>\n
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\u201cCosmos is all about autonomy, sovereignty and scalability. The ability for people to launch a blockchain in Cosmos and also be able to send tokens of the chains permissionlessly is really entirely unique.\u201d \u2014 Peng Zhong, CEO of Tendermint<\/h1>\n<\/blockquote>\n
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<\/p>\nCosmos\u2019s Architecture<\/h2>\n
The first important thing to note about the Cosmos architecture is the difference between the Cosmos Network and the Cosmos Hub.<\/p>\n
The Cosmos Network is the entire ecosystem of blockchains and interconnected apps, which is usually what people are referring to when they talk about \u2018Cosmos\u2019. The Cosmos Hub is an individual blockchain, the first one to be deployed into the Cosmos ecosystem, which performs a number of important interoperability functions.<\/p>\n
In addition to the Cosmos Hub, there are other key components in the Cosmos Network that help to make it the internet of blockchains.<\/p>\n
Bonded Proof-of-Stake (BPoS)<\/h3>\n
Cosmos uses a form of Proof-of-Stake consensus mechanism known as Bonded Proof-of-Stake (BPoS). This mechanism is used to secure the network, is considered to be energy efficient and provides rewards for token holders that choose to participate in staking.<\/p>\n
Cosmos SDK<\/h3>\n
This software development kit is a modular framework that allows developers to easily create application-specific blockchains. It provides a range of open-sourced modules, which can be used to create a blockchain that meets specific requirements. Furthermore, anyone can create their own Cosmos SDK module and integrate it into newly created blockchains.<\/p>\n
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<\/p>\nTendermint<\/h3>\n
Tendermint, or Tendermint Core to be more specific, is software that includes a consensus algorithm and a peer-to-peer networking protocol. Tendermint Core ensures that the same transactions are recorded on every machine in the same order. It is used to securely and consistently replicate applications on many machines.<\/p>\n
Tendermint BFT engine<\/h3>\n
The Tendermint BFT (Byzantine Fault Tolerant) engine is what developers use to build blockchains without having to code them from scratch. It is also used to secure the network, validate transactions and commit blocks to the blockchain. It connects to applications through a protocol called the Application Blockchain Interface.<\/p>\n
Inter-Blockchain Communication Protocol (IBC)<\/h3>\n
IBC is a sidechain protocol that allows blockchains to communicate with each other. It was launched in 2018 and now has more than 200 projects using it for interoperability. It provides an end-to-end, connection-oriented, stateful protocol for reliable, ordered and authenticated communication between blockchains or off-chain protocols, such as rollups.<\/p>\n
$ATOM Token<\/h2>\n
The native token of Cosmos is called ATOM, which is used to execute smart contracts and complete transactions. New tokens are only created as rewards for network validators and therefore ATOM does not have a maximum supply.<\/p>\n
As of 25 January 2022, ATOM has a price of $36.06 and a current market cap of $10,331,276,974 (according to CoinGecko data).<\/p>\n
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<\/p>\nThe Cosmos Ecosystem<\/h2>\n
Cosmos is an open-source ecosystem that welcomes developers to create and add their own modules to the library.<\/p>\n
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