Cosmos (ATOM), launched in March 2019, is a decentralised network of parallel blockchains, each with its own Byzantine Fault-Tolerance (BFT) consensus powered by Tendermint.
Cosmos has a TVL of $6,611,374 ****and 262 apps and services in its ecosystem as of January 29, 2022. It distinguishes itself from other blockchains by emphasising two main features: interoperability and customization.
Cosmos Hub is the company's primary chain, and it serves as a central ledger for Zones (interoperable blockchains). Each Zone has a lot of flexibility. They communicate through the Hub by using Internet Blockchain Communication (IBC). This allows developers to create their own currencies with features like custom block validation settings. For instance, it allows public and private blockchains to send tokens to one other. No other blockchain framework currently supports this degree of interoperability.
Before the introduction of Cosmos, blockchains were isolated and unable to transact with one another. They were hard to develop and could only process a limited number of transactions per second. Then came along Cosmos, and yes, there are various interoperable options, but Cosmos is very popular among developers. The main reason is its open-source development tools like Cosmos SDK, IBC, and Tendermint consensus mechanism.
Cosmos's main objective is to create an ecosystem of networks that can communicate data and tokens programmatically without a central hub. Osmosis, Cronos, and Terra are among the over 20 blockchains built on the Cosmos SDK with IBC enabled, and the number is expanding. The developers call it the Internet of blockchains.
Let's take a closer look at the pros and cons of Cosmos blockchain.
- Cosmos is capable of processing over 1,000 transactions per second (TPS). It takes just 7 seconds for a transaction to be confirmed. As more developers build on Cosmos, the network's activity will expand. The innovative token, ATOM, would be the principal benefactor of increased network activity.
- Cosmos Platform is fully open-source, with its development public on Github. As a result, we have a slew of flawlessly connected blockchains that can communicate with one another with ease. One of the main advantages is that it makes no difference whether the chains are Tendermint-based blockchains developed using Cosmos-SDK or not. Developer activity has also remained quite steady, as shown in the graph.
- Cosmos blockchain has credible use cases. THORchain, Terra, Kava, and Binance Chain are just a few of the blockchains that have used the Cosmos Network. Terra has benefited from Cosmos' software solutions. For example, the advantage of utilising Cosmos SDK to create chains is that they are extremely scalable. All of Terra's protocols form their own chain like the Anchor protocol has its own chain, and the Mirror protocol has its own chain, all of which are connected by IBC. As a result, they are able to create scalable but linked chains. Several crypto initiatives can take advantage of the success of the aforementioned cryptocurrency-inspired protocols by adopting Cosmos.
- The Cosmos SDK is a modular framework that makes it simple and safe for developers to build blockchain apps on top of Tendermint, making it exceedingly easy to join the Cosmos network.
- Plans to enhance the security (with two expected upgrades, Rho and Lambda) among network zones will provide projects and developers wishing to construct their own blockchains with even more flexibility, freedom, and incentives to join Cosmos.
- Cosmos is up against very stiff competition from a variety of directions. Polkadot is a direct rival with strong brand recognition. Ethereum is by far the most advanced ecosystem, which might lessen the need for interoperability efforts. Finally, while not direct rivals, bridge projects like Badger and Ren and side chains like Polygon present alternatives that potentially grab market share from Cosmos.
- Cosmos has problems with staking. When you stake an ATOM on Cosmos, it takes three weeks to get your stake back. As thousands of users do not have the time to go through the staking procedure, staking is usually delegated to a regular network member. If your delegator misbehaves and their tokens are slashed, not only will they lose their tokens, but your tokens may also be lost along the way. If more individuals experience this difficulty on the Cosmos Network, it may deter them from participating in the network.
Projects on Cosmos