Understanding why Cosmos is referred to as “The Internet of Blockchains”
Cosmos Blockchain’s native token is Atom, which is the 24th largest crypto in terms of its Market Capitalisation according to data from Coingecko, with Atom’s Market Capitalisation being $ 3,355,700,000.
The Cosmos Ecosystem has over 274 sovereign Blockchain applications within it, which are interconnected to each other leveraging Cosmos’s Inter — Blockchain Communication Protocol (IBC).
Cosmos’s Ecosystem is an active ecosystem with several projects that have added value to the chain with their valuable services. Some of these projects are — Akash, Osmosis, Juno, Secret Network, Crescent, Sentinel to name just a few.
These sovereign Blockchains can communicate with each other transferring assets and data between them using IBC technology. This is why Cosmos is alluded to as “The Internet of Blockchains.”
Cosmos is designed to build application specific dapps that are scalable
It’s possible for decentralised applications to function like sovereign Blockchains inside Cosmos, as Cosmos SDK provides the necessary framework embedded with tools to build such Blockchain applications.
These decentralised application platforms are scalable as they are not built inside a smart contract in a single chain framework Blockchain Network.
They are rather built as sovereign Blockchains with their own separate Chain. So, they are not limited to function inside another Blockchain as a dapp competing with other dapps for Block space causing Network congestion, leading to slow transaction speeds and high fees.
This makes Cosmos a great place to build application specific dapps that cater well to the requirements of building niche dapps in the realm of DEFI, gaming, social media, NFT, decentralised Market places etc.
Cosmos is a third generation Blockchain, designed to build application specific dapps.
Cosmos is secured through Proof of Stake Mechanism with staking done in Cosmos Hub
Security is robust in Cosmos with its functioning powered by Proof of Stake(POS) consensus mechanism.
The Cosmos chain is secured by validators in the Cosmos Hub, the main engine chain inside Cosmos offering various value added services to other chains inside the Cosmos interchain. Atom is staked by validators and delegators to contribute to the security of the Cosmos Chain.
The main nucleus of the Cosmos Network — Cosmos Hub
Cosmos Hub is a secure space to hold assets and the main chain where staked Atoms are stored.
Cosmos Hub is the economic hub of Cosmos Ecosystem, it’s the main heart of Cosmos with the Hub providing important services to other Blockchains in the Cosmos Ecosystem.
The Cosmos Hub was the very first chain to come on Cosmos with its main purpose being to provide vital services to other chains in the Cosmos Universe.
The functions of Cosmos Hub are -:
Ensuring interoperability
Router that establishes connections between other chains using IBC protocol. Cosmos Hub connects IBC compatible chains and establishes interoperability in the Cosmos universe. Interoperability with Blockchains beyond the interchain is established through safe bridges to Bitcoin and Ethereum Blockchains.
Custodian of Digital Assets
Cosmos Hub is a secure chain where Atoms are held and staked. Other chain accounts can be safely managed from the Hub.
Secures other chains providing Interchain Security services
We already learned that Cosmos Hub secures the Cosmos Network with Atom staked by validators to secure this POS chain. In addition to this, Cosmos Hub validators can secure other chains in the interchain as well through its Interchain Security services.
These validators will earn staking rewards of the chain they are securing for their Interchain Security services.
Market place to exchange assets of Cosmos Sovereign Blockchains
A dex to instantly swap assets of Blockchains functioning in the Cosmos Universe with low transaction costs.
Conclusion
Cosmos is home to hundreds of sovereign, scalable interconnected Blockchains that are creating value providing Web3 services in various vertices — DEFI, communication, gaming, NFT, privacy focused Web3 services, decentralised cloud storage and more.
Enrich your understanding further exploring the Cosmos Universe here -
Thank you for reading!!