Core Advantages and Ecological Status of Cosmos

Recently, a blockchain industry expert wrote an article about "The Current Core Technologies and Ecological Projects of Cosmos," interpreting the core technical advantages of Cosmos, the innovative mechanisms on the application chain, and several important projects currently on Cosmos.

The major challenge facing traditional blockchain today is the advancement of its widespread adoption and scalability. One of the issues is the lack of interoperability between different chains, which results in complex and inefficient communication and data transfer. Furthermore, because the design focuses on security rather than scalability, scalability has always been a primary challenge, leading to slower communication speeds and increased network congestion, thereby raising costs.

Cosmos proposes solutions to these problems by introducing an interconnected blockchain paradigm. It utilizes the Inter-Blockchain Communication (IBC) protocol to achieve seamless communication and secure asset transfers between different chains. Cosmos’s interoperability framework facilitates efficient cross-chain interactions, expanding the application scenarios of blockchain technology. Additionally, Cosmos addresses scalability issues through a modular architecture and consensus algorithms. Developers can create blockchains for specific applications using the Cosmos SDK, referred to as "zones." Zones can adopt different consensus mechanisms for horizontal scaling and performance optimization. By supporting parallel processing across multiple zones, Cosmos significantly enhances the network's transaction capacity and scalability. The Comet consensus algorithm provides fast block confirmation, enhances security, and defends against malicious attacks. This consensus mechanism offers a reliable foundation for interconnected blockchain networks, combining efficiency, finality, and stability.

Core: Cosmos SDK, IBC and Comet

The Cosmos SDK enables developers to create customized blockchains or zones that meet specific needs. These customized zones leverage the interoperability features of Cosmos, expanding the boundaries of inter-chain interaction. The Comet consensus algorithm ensures the secure and efficient operation of the Cosmos network. IBC supports seamless communication across different chains.

Highlights of Cosmos

Interoperability: The advantage of Cosmos lies in its guarantee of easy connectivity between independent blockchains within the network. This interoperability facilitates cross-chain applications and collaboration, driving innovation and enhancing the practicality of decentralization.

Scalability and Performance: Cosmos addresses scalability issues by allowing the creation of independent blockchains or zones. These zones can customize consensus mechanisms and scalability according to needs, supporting horizontal scaling by adding additional zones. Therefore, the Cosmos ecosystem has excellent performance and scalability.

Personal Sovereignty: The Cosmos ecosystem provides an ideal platform for creating chains that focus on personal sovereignty. Developers can flexibly customize various aspects of the tech stack to enhance key factors such as performance, throughput, and security. For example, chains can be built to run on different virtual machines, such as Move or SVM.

Developer-Friendly Environment: Cosmos provides a friendly environment for blockchain developers. The Cosmos SDK is a feature-rich dApp development platform. By utilizing the modular framework of the SDK, developers can create unique blockchains, simplifying the development process. This approach allows developers to create custom chains that extend from the Cosmos SDK, promoting the adoption and growth of the blockchain ecosystem.

Cosmos Application Chain

Application chains are an important part of the innovative Cosmos ecosystem, representing specialized blockchains that meet different use cases. Through the modular approach of the Cosmos SDK, developers can customize consensus, storage, and networking mechanisms according to the specific needs of dApps. This grants application chains autonomy, allowing developers to have better control over their applications and enhancing their ability to shape user experiences. The Cosmos application chain model also offers attractive revenue opportunities, allowing dApp creators to explore unique monetization strategies that promote sustainable growth within their respective chains.

The flexibility of Cosmos application chains also extends to MEV processing. By providing developers with tools to design MEV strategies, Cosmos encourages fair and transparent MEV extraction, promoting a more equitable and efficient ecosystem. The interoperability facilitated by the IBC protocol is a key advantage of the Cosmos application chain model. It supports seamless communication and asset transfer between different application chains, enabling the development of advanced cross-chain DeFi applications, which expands possibilities for developers and users. In summary, the application chains within the Cosmos ecosystem provide a promising avenue for dApp development, featuring sovereignty, revenue opportunities, MEV flexibility, and seamless interoperability, fostering a vibrant blockchain ecosystem.

Inter-chain Security

Inter-chain security is an innovative approach aimed at enhancing the security of new Cosmos chains and facilitating their smooth launch. It involves the concept of "borrowing" economic security from established secure chains, such as Cosmos Hub.

Main Advantages

Economic Security Leasing: Developers can utilize the security of the secure chain by locking a certain amount of new chain native tokens as collateral, establishing a financial link between the new chain and the secure chain.

Cross-Chain Security: Achieving economic security through inter-chain security, the new Cosmos chain is more resistant to attacks. It can rely on a large number of different validators in the secure chain to protect transactions and assets, reducing the risk of security threats such as 51% attacks.

Independent Blockchains: Each Cosmos chain operates independently, with its own governance, tokens, and use cases. However, through inter-blockchain communication protocols like IBC, they can securely exchange data and value, facilitating interoperability and synergy within the Cosmos ecosystem.

By adopting inter-chain security and collaborating within the Cosmos ecosystem, new chains can significantly lower the entry barrier and gain a robust and proven security infrastructure. This fosters innovation, accelerates the development of blockchain, and ushers in a new era of secure and interconnected dApps.

Cosmos SDK

The Cosmos SDK supports modularity, creating an ecosystem that includes a large number of interchangeable modules. This approach frees developers from the task of "building complex functionalities from scratch." Instead, developers can seamlessly integrate pre-built modules into their applications, simplifying the blockchain creation for specific applications. The Cosmos SDK offers high flexibility in module customization, allowing developers to precisely tailor these modules according to application needs, opening new avenues for fine-tuning chain applications. As the Cosmos Network evolves, the ecosystem of SDK modules will also expand, providing developers with more options and functionalities. In this dynamic environment, complex and highly specialized blockchain applications can be nurtured, fostering innovation and driving the development of the Cosmos ecosystem.

The Cosmos SDK also prioritizes security through a capability-based security concept. These features act as "guardians," clearly defining the boundaries between modules and mitigating risks from malicious or unforeseen interactions. By protecting creation, the Cosmos SDK focuses on security measures.

Inter-Blockchain Communication Protocol IBC

IBC is a protocol of the Cosmos ecosystem designed to facilitate secure and decentralized communication across blockchains. It acts as a bridge, enabling data transfer throughout the Cosmos network. By utilizing cryptographic proofs and consensus algorithms, IBC ensures the integrity and trustworthiness of inter-chain transactions, maintains data confidentiality, and prevents tampering or unauthorized access. This protocol not only enhances the interoperability of chains but also promotes collaboration and innovation by allowing project-based systems to be utilized across the network. With IBC, Cosmos has the potential to usher in a new era of blockchain interconnectivity, providing new possibilities for dApps, cross-chain asset transfers, and the creation of interconnected blockchain networks.

Tracking: Chain B continuously receives the data headers sent from Chain A, and vice versa. This allows each chain to track the validator set of the other chain, essentially having each chain operate as a light client for the other chain.

Binding: When the IBC transfer is initiated, the token is bound.

Proof Relay: Then, 10 tokens are bound as proof relayed from Chain A to Chain B.

Verification: Verify the certificate against the data header of Chain A on Chain B. If the certificate is valid, create 10 certificates on Chain B.

Cosmos environment

The Cosmos ecosystem is currently developing well, attracting a variety of projects and establishing influential partnerships. By leveraging Cosmos's robust infrastructure, these projects have entered a highly interoperable blockchain space, with the potential to unleash powerful network effects. This seamless collaboration and integration greatly enhance the overall ecosystem, foster innovation, and drive the adoption of Cosmos as a popular blockchain solution.

Cosmos-based project

Osmosis

Osmosis is an innovative crypto project built on the Cosmos ecosystem, providing a DEX platform that facilitates liquidity provision. Supported by the IBC protocol, Osmosis enables seamless token swaps between different chains within the Cosmos network. This unique feature allows users to access a variety of assets and pools, promoting an efficient and secure trading experience. By leveraging Cosmos's interoperability and scalability, Osmosis has created an inclusive interconnected ecosystem that enhances liquidity and enables cross-chain collaboration. With a focus on optimizing user experience and liquidity management, Osmosis opens up new opportunities for DeFi participants, allowing them to explore a broader range of assets and unleash their trading potential.

dYdX

dYdX is a DEX platform that is popular for its user-centric approach to crypto trading. By allowing users to have full control over their private keys and assets, dYdX eliminates reliance on centralized institutions, facilitating a more secure and transparent trading experience. dYdX operates on the Cosmos chain, utilizing the Cosmos SDK to enable fast and efficient trading, as well as seamless interoperability with other Cosmos-based applications. In addition to basic crypto trading, dYdX also offers margin trading and lending services, catering to traders seeking leverage and lending users looking to earn interest on idle assets. With its strong security, the prospects for Cosmos on dYdX are vast, changing the way traders participate in cryptocurrencies while fostering the growth of the DeFi ecosystem.

Akash Network

Akash Network provides a decentralized cloud computing marketplace. By leveraging the security of Cosmos, Akash Network offers users a secure data exchange and development platform. The network operates through a PoS consensus mechanism, enhancing transaction security. The native token of Akash Network is AKT, serving as a utility token within the ecosystem. Through integration with Cosmos, Akash Network benefits from interoperability and scalability of a larger network, achieving seamless communication with other blockchain platforms. Therefore, Akash Network enables developers and organizations to access cost-effective decentralized cloud computing resources.

Sei Network

Sei Network is a high-performance blockchain platform operating as L1 on the Cosmos SDK, providing financial services for users and facilitating the deployment of the DeFi ecosystem. The network originated from the founders' realization of the need for a decentralized financial system that prioritizes transaction speed and security while providing innovative financial tools. Sei utilizes a proprietary PoS consensus algorithm to provide secure transaction confirmations through staking and ownership verification. The platform's three-layer architecture includes a client layer, service layer, and chain platform layer, supporting high throughput with the ability to process up to 20,000 transactions per second. Built-in support for Rust and Solidity smart contracts enables developers to easily build custom projects and DeFi applications on Sei. The network's native token SEI serves as an internal asset for rewards, staking, and project management, facilitating a sustainably prosperous ecosystem. Additionally, Sei's integration with Cosmos grants it interoperability and scalability, allowing seamless communication with other blockchain platforms and supporting broader adoption and easier access to DeFi services. Sei Network is becoming an affordable and powerful blockchain platform that promotes financial inclusion and supports the development of cutting-edge applications across various fields of blockchain.

Neutron

Neutron is a DeFi platform within the Cosmos ecosystem that introduces a revolution in cross-chain communication. Neutron is positioned as the first consumer chain on Cosmos, operating with an open policy and possessing inter-chain communication capabilities to facilitate seamless interactions between different blockchain networks. With CosmWasm supporting smart contracts in multiple programming languages, it offers flexibility and scalability. Its interoperability enables developers to access functionalities from other blockchains, unlocking new realms of possibilities and realizing the true potential of blockchain technology. By adopting security from the Cosmos Hub, Neutron promotes a secure and reliable infrastructure, laying the groundwork for mutually beneficial relationships in the economic zone. The features and strategic positioning of Neutron herald a transformative era for the Cosmos ecosystem, having a profound impact on the future of DeFi and inter-chain collaboration.

Celestia

Celestia is a project in the Cosmos ecosystem that provides consensus and security on demand. It aims to eliminate the need to bootstrap new consensus networks.