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What is Cosmos

What is Cosmos

The Cosmos Network developers aim to create a blockchain Internet in order to unite different networks in a single ecosystem and ensure their interaction. As of today, Cosmos has launched more than 250 decentralized applications.

Full name of the company: Tendermint Inc.

Foundation date: 2014

Founder: Jae Kwon (USA)

Capitalization: more than $2.77 billion

Legal status: Registration in the United States (California)


Company products

Cosmos Network is a decentralized and scalable ecosystem that integrates independent blockchains based on the Tendermint Core protocol, allowing them to interact with each other.

The main idea of the Cosmos project development is to create a blockchain space. In other words, a multichain space in which all participants can freely interact with each other in a decentralized environment.

Cosmos stands as an interoperable ecosystem, creating an environment in which different networks and their users can interact with each other due to interoperability. The project developers aim to develop not just one blockchain but to build a structural system for all possible blockchains, to exchange assets and digital data without the involvement of centralized intermediaries.

Project participants can create their own networks using special tools provided by developers.

Two key elements represent the structure of the system:

  • zones - conventional Tendermint-based networks;
  • hubs - blockchains that make it possible to connect zones with each other for interaction.

Cosmos Hub is the first blockchain ecosystem and, at the same time, a hub that falls into the category of public networks and operates on the Proof-of-Stake (PoS) consensus algorithm. There is no coin mining, while coin generation is realized through validator staking. Each new project created through Cosmos is immediately linked to Cosmos Hub.

Tendermint Core is a Cosmos Network protocol that is based on a consensus mechanism tolerant to Byzantine faults and is used to scale public networks running on the PoS algorithm. It allows implementing a guarantee of transaction completeness, which means that blocks are finalized if 2/3+1 signatures are obtained from validators, so it is not possible to change or cancel the transaction.

Thanks to Tendermint Core, the functioning of the decentralized network is secure and reaches agreement in any case, even when some participants show their malice. At the same time, blockchain zones can operate on their own algorithm without being bound to Tendermint.

The protocol allows developers of new networks to create them without coding from scratch and to focus their efforts on running applications with useful functionality. The connection of Tendermint Core to new apps is made through a special protocol ABCI, which is compatible with programming languages.

Cosmos SDK is a platform and, at the same time, a comprehensive toolkit provided for programmers and developers to write code. It acts as a modular framework to create networks and applications over them with the Tendermint protocol. The modularity makes it easy to migrate any network code to Tendermint.

A prime example is the launch of Ethermint, a similar virtual machine technology to Ethereum, running in the Cosmos SDK.

IBC (Inter-Blockchain Communication) is a protocol that allows blockchains within and outside of Cosmos to interact with each other in order to perform information exchange and crypto-asset transactions. However, we are talking about those blockchains where transactions are instantly confirmed. For example, special PegZones proxy chains are used to communicate with Bitcoin or Ethereum in order to realize exchange with the Tendermint blockchain.

ATOM is the Cosmos network's own token, divided into 1 million micro-ATOMs (uATOMs). Coins can be used for staking or delegating tokens to validators to boost rankings and generate additional revenue. Each validator's voting share depends on the number of aggregated tokens, directly affecting the ability to create new blocks and earn remuneration.

All ATOM holders can vote for decisions to develop the ecosystem. Validator roles are distributed among the 125 members of the network who have the highest staking volumes. Eventually, there are plans to increase the number of validators to 300.

ATOM has an average yield of 9% and a minimum holding period of 21 days. Coin issuance is not limited, but each year its rate changes.

The token can be used to pay transaction fees. In addition, ATOM is used in blockchain-to-blockchain exchanges in such a way that a given number of ATOM coins are blocked in network 1 by the IBC protocol, then the data is sent to network 2 and then the blocked tokens are released in network 2.


History

2014 – Jae Kwon, an American programmer and businessman, founds Tendermint Inc., a company specializing in software development. A bit later, the White Paper of the project is published.

2015 – Ethan Buchman joins the team and creates the nonprofit Interchain Foundation (ICF).

2016 – The first round of Tendermint funding is underway, allowing the team to expand and run Ethermint, which means migrating the Ethereum virtual machine to Cosmos and making it run on the Tendermint consensus protocol developed by Kwon. At the same time, the Basecoin framework is launched, which can be used to create cryptocurrencies and use the Go programming language. This is how the first iteration of Cosmos Hub begins.

2017 – ICO Cosmos, which manages to raise $17.3 million not only in fiat, but also in the equivalent of ETH and BTC, is taking place. 75% of the available tokens were sold out and another 5% went into a reserve for replacement investors, with All in Bits Inc. and ICF each receiving 10% of the tokens.

Interchain Foundation partners with All in Bits Inc. to develop Cosmos Network.

2018 – the Cosmos project becomes a member of the Ethereum Community Fund (ECF) to encourage the development of blockchain infrastructure and decentralized apps.

2019 – Tendermint Inc. announces the launch of the first Cosmos Hub blockchain using the Proof-of-Stake consensus algorithm to further create the entire Cosmos ecosystem.

The ATOM network token is launched.

In the same year, a critical blockchain vulnerability was identified, resulting in a successful update of the Cosmos SDK.

2021 – China's national blockchain platform BSN adds Cosmos support to the localized version of the network.

Tendermint Inc. is launching a fund to support promising projects based on the Cosmos blockchain. The fund is worth $20 million.

2022 – based on the results of the rebranding, the company name is changed to Ignite.

The specialized Ignite Accelerator program, which focuses on projects in the Web 3.0 segment, will soon be launched.

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