Since the publication of the Bitcoin (BTC) paper in 2008, many crypto assets (virtual currencies) such as Ethereum (ETH) and XRP (Ripple) have been born. A new blockchain has been developed, and various virtual currencies are still being created, such as stocks with characteristics similar to Bitcoin and stocks aiming to solve Bitcoin’s problems.
After that, the blockchain, which is the basis of virtual currency, was evaluated for its features such as the fact that it is virtually impossible to tamper with data and the need for an intermediary. Technology has come to be applied in the field of.
But on the other hand, there are still challenges with blockchain. One of them is “interoperability”. For example, Bridge Smart Contract Development Services it is not possible to exchange cryptocurrencies directly between Bitcoin and the Ethereum blockchain.
Cryptocurrency Cosmos (ATOM) aims to solve this interoperability issue.
Features
Overview
Achieving interoperability between different blockchains Cosmos is committed to allowing each independent blockchain to exchange data with other blockchains and send cryptocurrencies.
The leader of the development is “All in Bits Inc (commonly known as Tendermint)”. In 2016, the company’s co-founder, Jae Kwon, described the characteristics of the Cosmos network as follows:
For example, let’s say you connect the Ethereum blockchain, which has a smart contract function, Build a token bridge to the highly anonymous virtual currency Zcash (ZEC) blockchain to Cosmos.
That way, you can increase your anonymity when sending cryptocurrencies on the Ethereum network via Zcash’s blockchain.
Cosmos aims to build the “Internet of Blockchains”. A network in which different blockchains can communicate with each other in a decentralized manner is referred to as the “blockchain Internet.”
Different names
In the Cosmos network, the blockchain of the main body of Cosmos is called “Cosmos Hub”. In addition, cosmos hub is sometimes called “Gaia” by using the code name, but in this article, it will be unified as cosmos hub.
The network where each blockchain gathers is called “Cosmos network”, and the virtual currency used in Cosmos hub is called “ATOM”.
Structure
The cosmos network, which realizes the interoperability of different blockchains, has the following structure when viewed in small units. “Hub” is a blockchain that brings together different blockchains and plays a central role. Each blockchain that is connected to it and is specialized for each purpose is “Zone”.
The Cosmos Network uses the “Inter-Blockchain Communication protocol (IBC)” standard for communication. IBC is called “protocol” in IT terminology, and protocol is commonly used to mean “standard” or “procedure”.
By establishing a communication standard called IBC, the rules are unified, and the Cosmos Network allows virtual currencies to be sent to each other on different blockchains.
The exact definition of a cosmos network is not “a network connected to a cosmos hub” but “a collection of blockchains that support IBC”.
Next, let’s take a closer look at the cosmos network.
As you can see in the image above, Build a cross chain bridge there is more than one Hub in the Cosmos Network. You can include multiple Hubs that are also IBC relay points. As an example, Bitcoin and Ethereum blockchains are also connected to “Hub1” on the left.
ATOM remittance flow
At the end of this section, let’s take a quick look at how IBC transfers cryptocurrencies between different blockchains.
This time, it is assumed that 10 ATOMs owned by the account in blockchain A (hereinafter A) are sent to blockchain B (hereinafter B).
1. First, instead of actually sending the ATOM in A, the process is to first lock the 10ATOM in A so that it cannot be used. In the Cosmos project, this practice is called “Bonding”.
2. Next, send proof that 10ATOM is locked at A to B.
3. If the proof is confirmed and approved by B, “Voucher”, which means a certificate for 10 ATOM, will be issued by B. B uses that Voucher as “10 ATOM”.Of course, Voucher is not a real ATOM. The same procedure applies when unlocking ATOM.
Development tools
Open source tools are available to efficiently create a blockchain to connect to the Cosmos network. IBC is also included in one of the tools, but there are other development kits such as “Cosmos SDK”.
Of course, if you develop using tools from the beginning, you can efficiently create a blockchain for cosmos networks. With the Cosmos SDK, you can also create a blockchain “Ethermint” for Cosmos that is fully compatible with Ethereum.
However, the earlier Bitcoin and Ethereum blockchains were, of course, not made with tools for the Cosmos network.
In such a case, use a blockchain called “Peg-Zone” that connects the two blockchains. The Cosmos Network uses Peg-Zone to connect any blockchain.
In this way, the word “cosmos” used as the name of virtual currency is used in various parts. Even if you just say cosmos, you may not be able to tell what you are referring to.
Generally, “Cosmos” is a general term for the above-mentioned “Cosmos Hub,” “Cosmos Network,” “ATOM,” and “Cosmos SDK.”
2. Virtual currency “ATOM”
In the Cosmos network where different blockchains are connected, multiple virtual currencies such as Bitcoin and Ethereum will be used, but the native currency of Cosmos Hub is “ATOM”.
The Cosmos Network uses ATOM for the following three purposes.
Payment of fees
Use for paying fees is the same as Ethereum’s “gas bill”. Cosmos Hub has introduced a mechanism to pay the fee required for the transaction so that it can easily perform harassment, Cross chain bridge development and we ask ATOM to pay the fee.
Staking
“ Staking “ refers to the act of holding ATOM to earn a block approval reward. The consensus mechanism adopted by Cosmos Hub is “Proof of Stake (PoS)”.
Some materials describe it as “Delegated Proof of Stake (DPoS)” because it is possible to delegate the approval of the block to another person (= Delegate), but the official website describes it as PoS. increase.
The more ATOMs that “validators” that approve blocks have, the less likely they are to attack the network and the more secure they are.
Governance
You need to own ATOM in order to vote on the operation (= governance) of the Cosmos Hub. In order to have a say in various proposals, a mechanism has been introduced in which the user owns ATOM.
Whether a validator can be granted the right to block approval and can have a significant impact on governance voting depends on the number of ATOMs stakes. This quantity is calculated as the sum of the amount stakes by the person and the amount delegated by other holders.
