Cosmos: Interconnected Blockchains

Cosmos is a decentralised ecosystem that offers communication between independent blockchain protocols. Hubs (e.g. the Cosmos Hub) act as central blockchains that connect the independent chains called Zones. In this vast space, Cosmos stands out by providing an infrastructure that offers customisability and seamless interoperability to help the usability and development of blockchains and applications. This architecture futureproofs them as we head into a future where numerous blockchains will coexist, making interoperability a likely necessity.

Cosmos aims to create a fast, secure, scalable and, most importantly, interoperable “Ecosystem of Ecosystems”, eliminating the boundaries between blockchains while also maintaining a developer and user-friendly environment. Such functionality is achieved by three main features: Tendermint BFT and ABCI, Inter-Blockchain Communication (IBC).

Tendermint

Cosmos SDK tools use by default the Tendermint Byzantine fault tolerance (BFT) engine consensus protocol to secure the network, yet others can also be used. Tendermint BFT allows developers to build blockchains without coding them from scratch.

The Tendermint BFT algorithm validates transactions and executes blocks to the blockchain. It uses a protocol called the application blockchain interface to connect to applications.

The protocol functions through a proof-of-stake (PoS) governance mechanism that supports integrating the computers’ distributed network running Cosmos Hub.

Participants in the network can stake ATOM and earn rewards. The top 100 stakers can become validator nodes to power the blockchain and vote on changes. The higher the amount of ATOM staked, the higher the voting power for the validators.

Users can also choose to delegate their tokens to validators and interchange them. This incentivizes validators to perform honestly. Users can easily switch between the validators they delegate ATOM to, depending on their voting preferences.

Hubs and zones communicate through the Inter-Blockchain Communication, or IBC, protocol, which allows them to interact.

Inter-Blockchain Communication (IBC)

IBC is a protocol that allows the transmission of secure messages between heterogeneous blockchains/zones and connects them to the Cosmos hub. This innovative process enables users to freely and securely exchange assets and data across sovereign (autonomous) and decentralized blockchains.

The Cosmos Hub is regarded as a service provider to the chains that must connect to it to become interoperable. Any sovereign blockchain with different applications, validators, and consensus mechanisms can still communicate with each other and exchange data, regardless of their functions and business objectives.

Problem solved by Cosmos?

Cosmos’ objective is to enable communication between all blockchains while solving the three main blockchain problems: sovereignty, scalability and sustainability.

Sovereignty

The Cosmos free SDK allows developers to build sovereign blockchain apps without ongoing costs. These blockchains can easily interconnect without relying on smart contracts to exist on a different blockchain, thereby avoiding high transaction fees due to network congestion while developing better scaling features.

Scalability

Cosmos interoperability is what guarantees the functioning of a scalable system. By integrating to Cosmos interoperability model of shared communication standards, any type of sovereign blockchain will be able to communicate with each other and contribute to the evolution of its protocol design.

Cosmos scalability can be obtained by duplicating a blockchain to relieve congestion or splitting the apps into multiple application-specific blockchains. Interchain token transfers allow these multiple chains to continue one network.

Sustainability

Sustainability is assured by the PoS consensus algorithm, which secures the network. PoS reduces carbon footprint by 99% compared with the PoW consensus algorithm.