Can You Make Money With Cosmos Blockchain
Understanding Creation Network: The Net of Blockchains
Cosmos is a network architecture that allows multiple parallel blockchains to interact and share information. Information technology aims to create the next Net where blockchains replace computers. As a result, no one will experience the need to compete, and they can all coexist under ane umbrella ecosystem. The Cosmos network adopts an independent approach for building blockchains within the Cosmos ecosystem. Cosmos Tendermint consensus mechanism uses a gossip protocol to fast-track peer-to-peer advice. The application layer defines transactions fabricated on blockchain and submits them to the consensus layer.
The total active internet users exceeded iv.5 billion in 2021, or almost threescore% of the global population. In comparison, we see the number of global crypto and blockchain users is approaching the 300 meg mark, according to the Q2 2021 reports from Crypto.com. This shows nosotros are still very far away from mainstream adoption.
A major reason for this is the lack of interoperability between blockchains. There are multiple approaches that enable cross-concatenation interaction, merely they do so between merely 2 existing blockchains. None of the electric current interoperability techniques brand a significant impact in terms of network efficiency, seamless upgradeability, and sustainability.
Addressing these shortcomings is the Cosmos network, a one-of-a-kind interoperable ecosystem that is aimed to provide cross-chain communication between multiple blockchains with different functionalities. Currently, Cosmos is the leading blockchain project with the near prominent interoperability solutions.
What is the Cosmos Network?
Creation is a network architecture that allows multiple parallel blockchains to collaborate and share data. It aims to create the next Cyberspace where blockchains replace computers. As a result, no blockchain volition feel the need to compete, and they can all coexist under i umbrella ecosystem.
The interoperable network adopts an independent approach for edifice blockchains inside the Cosmos ecosystem. In that arroyo, the application layer is separated from networking and consensus layers. This is done to give extra flexibility to the developers, as they tin create unlike customized applications that have their own flexibility and needs.
Along with contained direction of blockchains, the Cosmos network also streamlines application development past providing necessary tools and platforms. Developers can leverage the existing blockchains and modules within the network and increase adoption and liquidity in a significantly less corporeality of time.
How Does Cosmos Network Work?
The underlying compages of the network is what boosts interoperability and sovereignty within the Cosmos ecosystem. And that architecture has iii principal layers: Consensus, Networking, and Application.
The Cosmos Consensus Layer
The independent blockchains in the Cosmos network use a consensus algorithm called Tendermint. This algorithm takes a different approach every bit compared to Bitcoin's Nakamoto consensus and Ethereum'due south Ethash. While both are probabilistic in nature, which means blocks are not finalized instantly, Tendermint allows the blocks on Cosmos to achieve instant certitude upon validators' votes, making the network more secure.
The Creation consensus layer besides prioritizes safety over liveliness. So, when a proof-of-work concatenation is split into ii, the network automatically selects the longest chain as master and reverses the transactions fabricated on the secondary one. However, on Tendermint, the network stops operating until ⅔ validators come to a consensus. This helps maintain consistency of truth even when there is a network partition.
The Cosmos Networking Layer
Similar to Bitcoin and Ethereum, the Cosmos Tendermint consensus machinery uses a gossip protocol to fast-track peer-to-peer communication. In the networking layer, nodes tin besides contribute to the consensus process. They are considered as "not-validator nodes."
The messages transmitted on the networking layers can be anything, such as proposals, blocks, and votes. The validator and non-validator nodes work together to facilitate smoothen communication and let all their network peers grab upwards to speed on the latest messages and transactions.
The Cosmos Application Layer
Till now, information technology'southward articulate that the consensus and networking layers are responsible for validating nodes and propagating letters, respectively. But how are the transactions actually passed on to these layers? This is where the application layer comes into the flick.
The Cosmos application layer defines the transactions made on blockchain and submits them to the consensus layer. The interaction between the 2 happens via the Application Blockchain Interface (ABCI). The specialty of this interface is that it is non limited to any one programming language. Applications built on Creation can literally utilise any language to found communication with the base of operations layers of the protocol.
Three Pillars of the Cosmos Economy
Tendermint Core
The Creation network uses multiple software innovations to make the interoperable platform more secure and efficient. Among those innovations, the nearly important one which lays the foundation for the unabridged ecosystem is Tendermint Core.
It is the main edifice cake of Cosmos Hub and other essential components within the Cosmos ecosystem. The Tendermint Core mainly brings Byzantine Fault Tolerance (BFT) methodology to the network architecture of Cosmos. Then, it is responsible for reproducing applications using existing blockchain networks in the Cosmos ecosystem.
In simple words, it acts like a plug-and-play replacement for you lot to stride into other blockchain universes. For instance, you tin take the Ethereum codebase and run it on the Cosmos network using the ABCI application. In fact, Cosmos overcame the bottlenecks of Ethereum past transporting the EVM to Cosmos. Information technology was called Ethermint.
IBC Protocol
The IBC protocol provides the interoperability factor that Cosmos boasts near. It helps establish advice between blockchains by using a hub and zone model. Hubs manage multiple zones. And zones communicate indirectly with the assist of IBC. It doesn't do this directly because and then information technology would hinder blockchain's scalability.
The outset hub of the IBC protocol is Creation Hub. It is the principal handler to connect different deterministic blockchains to the Creation hub. For those that aren't deterministic, similar Bitcoin and Ethereum, Cosmos uses Peg Zones. These human action like links between not-Tendermint based chains and the IBC protocol. So, in a nutshell, IBC protocol helps all types of blockchains to interoperate using Cosmos hub.
Cosmos SDK
The third building block driving more innovation within the Cosmos network is Creation SDK. Developers tin can avoid building applications from scratch, as they tin can accept advantage of the Cosmos PoS module to secure the foundation. On superlative of it, they can do all the required customization.
This is proof that Cosmos makes blockchains more powerful and easy to deploy with the modularity given through its SDK. Even in terms of security, it is superior. Many popular application-based blockchains are built on the Cosmos SDK. Some of them are Binance Chain, Terra, and Kava.
Interesting Projects Being Congenital on Cosmos Network
Sifchain
Sifchain is an omni-channel DEX built using the Cosmos SDK. This DEX selected Cosmos network for its loftier transaction speed and ability to transact at significantly lower fees. It is a loftier-performing cross-chain DEX, targeting connections to more than 20 of the leading blockchains. Sifchain bridged Creation and Ethereum, so that token holders do good from both chains while all the same pooling together liquidity. On summit of this, they will also offer cantankerous-chain deep margin trading.
Band Protocol
Some other projection that is improving the versatility of Cosmos is Band Protocol. It is a cross-chain oracle that uses web APIs to excerpt real-world information and feed information technology onto different blockchain smart contracts. Band Protocol has unlocked many cross-concatenation functionalities for developers and is now considered a pinnacle oracle provider with partners like Terra and Mirror protocol.
pSTAKE
Staked avails' illiquidity has plagued crypto investors for too long. pSTAKE Finance aims to change that with their liquid staking protocol on the Cosmos network. pSTAKE'southward dual token model allows stakers to use their staked assets to issue ane:ane pegged representatives and explore other investment opportunities in the DeFi ecosystem. Cantlet holders can also increment their capital efficiency by using pSTAKE and supplying liquidity to a variety of cantankerous-chain DEXs through pBridge - a major component of the protocol.
Comdex
As the name suggests, Comdex is a decentralized exchange in the Creation ecosystem. It is built on the Persistence SDK and creates synthetic versions of various existent-world and tokenized community assets. Comdex's trading platform overcomes the flaws of traditional article markets by providing exposure to a hard-to-get nugget course in a highly liquid market place. Comdex plans to roll out a dApp chosen ShipFi in 2022 that volition supposedly propel the seamless transfer of value or greenbacks menstruation from DeFi to CeFi.
Interoperable Blockchains are the Future
If we fail to accept blockchains and their data out from the silos in which they currently part, it would exist extremely difficult for users to navigate the fragmented ecosystem. That is why, if we want widespread adoption of blockchain engineering science, information technology is crucial for us to improve the interoperability of blockchains. Furthermore, lower transaction fees and higher scalability are other concerns that need addressing. In this regard, the Cosmos network is a ray of hope. It can create a universe of blockchains that don't compete with others only piece of work in unison, and it can maximize network efficiency and provide a better user experience.
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Source: https://hackernoon.com/understanding-cosmos-network-the-internet-of-blockchains
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