Core Advantages and Ecological Status of Cosmos

Recently, someone wrote an article about "Cosmos's current core technologies and ecological projects," interpreting the core advantages of Cosmos in technology, the innovative mechanisms on application chains, and several important projects currently on Cosmos.

The major challenge facing traditional blockchain today is the promotion of its widespread adoption and scalability. One of the issues is the lack of interoperability between different chains, leading to complex and inefficient communication and data transfer. Furthermore, because the design focus has been on security rather than scalability, scalability has remained a primary difficulty, resulting in slower communication, increased network congestion, and consequently higher costs.

Cosmos introduces a solution to these challenges by implementing an interconnected blockchain paradigm. It utilizes the Inter-Blockchain Communication (IBC) protocol to achieve seamless communication and secure asset transfers between different chains. Through a standardized framework for inter-chain interoperability, Cosmos facilitates efficient cross-chain interactions, expanding the possibilities and practicality 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." These independent blockchains can adopt different consensus mechanisms, allowing for horizontal scaling and performance optimization. By supporting parallel processing across multiple zones, Cosmos significantly enhances the network's transaction capacity and scalability, while also leveraging the Comet consensus algorithm to provide fast block confirmation times, improved security, and resilience against malicious attacks.

Core: Cosmos SDK, IBC, and Comet

The Cosmos SDK enables developers to create customized blockchains or zones that meet specific needs and objectives. Utilizing Cosmos's interoperability features, these customized zones extend the boundaries of inter-chain interactions. The Comet consensus algorithm ensures the secure and efficient operation of the Cosmos network. IBC supports seamless communication across different chains.

Cosmos Highlights

Interoperability: The advantage of Cosmos lies in its guarantee of interoperability, allowing independent blockchains within the network to connect easily. This interoperability facilitates breakthroughs in cross-chain applications and collaboration, driving innovation and enhancing the practicality of decentralization.

Scalability and Performance: Cosmos addresses scalability issues by creating independent blockchains or zones through authorization. These zones can customize their consensus mechanisms and scalability according to user requirements, supporting horizontal scaling by merging additional zones to accommodate increased transaction volumes. Therefore, the Cosmos ecosystem has excellent performance and scalability.

Personal Sovereignty: The Cosmos ecosystem provides an ideal platform for creating chains focused on personal sovereignty. Developers can flexibly customize any aspect of the technology stack to enhance performance, throughput, security, and other key factors of the chain.

Developer-Friendly Environment: Cosmos provides a friendly environment for blockchain developers. The Cosmos SDK is a feature-rich platform for building dApps. By utilizing the SDK's modular framework, developers can create their own unique blockchains outside of the SDK, streamlining the development process.

Cosmos Application Chain

Application chains are an indispensable part of the innovative Cosmos ecosystem, representing specialized and specific application blockchains that meet different use cases. By adopting a modular approach through the Cosmos SDK, developers can customize consensus, storage, and network mechanisms according to the specific requirements of their dApps. This grants application chains a certain degree of autonomy, allowing developers to better control their applications and enhancing their ability to shape user experiences. Furthermore, the Cosmos application chain model provides enticing revenue opportunities, allowing dApp creators to explore unique monetization strategies and facilitating sustainable growth within their respective chains.

The flexibility of Cosmos application chains extends to the handling of MEV. By providing developers with tools to design MEV strategies that suit their needs, Cosmos incentivizes fair and transparent MEV extraction, promoting a more equitable and efficient ecosystem. Additionally, the connectivity facilitated by the IBC protocol is a key advantage of the Cosmos application chain model. It supports seamless communication and asset transfers between different application chains, enabling the development of advanced cross-chain DeFi applications and expanding possibilities for developers and users alike.

Inter-chain Security

Inter-chain security is a groundbreaking approach aimed at enhancing the security of new Cosmos chains and facilitating their smooth launch. It involves the concept of "renting" economic security from already established secure chains within the Cosmos ecosystem (Cosmos Hub).

Main Advantages

Economic Security Leasing: In order to launch a new Cosmos chain, developers can utilize the security of the Cosmos Hub or other secure chains by locking a certain amount of the new chain's native tokens as collateral. This process helps establish financial connections between the new chain and the secure chain.

Cross-chain Security: Achieve economic security through inter-chain safety. The new Cosmos chain has a stronger resistance to attacks, relying on a large number of different validators in the secure chain to protect its transactions and assets, reducing the risk of 51% attacks and other security threats.

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

Cosmos SDK

The Cosmos SDK supports modularity, creating an ecosystem of numerous interchangeable modules. This approach liberates developers from the previous task of "building complex functionalities from scratch." Developers can seamlessly integrate pre-built modules into their applications, thereby simplifying the creation of application-specific blockchains. The Cosmos SDK offers great flexibility in module customization, allowing developers to precisely tailor these modules to their application needs, opening up a possible domain for fine-tuning chain applications.

The Cosmos SDK also prioritizes security through its capability-based security concept. These features act as "guardians," clearly defining the boundaries between modules and mitigating the risks posed by malicious or unforeseen interactions.

Inter-Blockchain Communication Protocol IBC

IBC is a protocol in the Cosmos ecosystem designed to facilitate secure and decentralized communication across blockchains. It acts as a bridge, enabling data transmission throughout the Cosmos network. By utilizing cryptographic proofs and consensus algorithms, IBC promotes the integrity and trustworthiness of inter-chain transactions, maintaining data confidentiality and preventing tampering or unauthorized access. This protocol not only enhances the interoperability of chains but also fosters collaboration and innovation by allowing the utilization of project-based systems on 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 data headers sent from Chain A, and vice versa. This allows each chain to track the validator set of the other chain, essentially, each chain runs a light client of 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 credentials against the data header of chain A on chain B. If the credentials are valid, create 10 credentials on chain B.

Cosmos environment

The current Cosmos ecosystem is quite good, attracting a variety of projects and establishing influential partnerships. By leveraging Cosmos's powerful infrastructure, these projects have entered a highly interoperable blockchain space, which has the potential to unleash strong network effects. This seamless collaboration and integration greatly enhances the overall ecosystem, fosters innovation, and drives the adoption of Cosmos as a popular blockchain solution.

Project based on Cosmos

Osmosis is an innovative cryptocurrency project built on the Cosmos ecosystem, providing a DEX platform that facilitates liquidity provision. With the support of 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 and interconnected ecosystem that enhances liquidity and enables cross-chain collaboration.

dYdX is a DEX platform that has gained popularity due to its user-centered approach to cryptocurrency trading. By allowing users to have complete control over their private keys and assets, dYdX eliminates reliance on centralized institutions, promoting a safer and more transparent trading experience. dYdX operates on the Cosmos blockchain, utilizing the Cosmos SDK to facilitate fast and efficient transactions, as well as seamless interoperability with other Cosmos-based applications. In addition to basic cryptocurrency trading, dYdX also offers margin trading and lending services, catering to traders looking to leverage their positions and lending users hoping to earn interest from idle assets.

Akash Network provides a decentralized cloud computing marketplace. By leveraging the security of Cosmos, Akash Network offers a secure platform where users can send data to each other and develop applications. The network operates on a PoS consensus mechanism, enhancing the security of transactions. The native token of Akash Network is AKT, serving as the utility token of the ecosystem. Through integration with Cosmos, Akash Network benefits from the interoperability and scalability of a larger network, enabling seamless communication with other blockchain platforms.

Sei Network is a high-performance blockchain platform that operates as L1 on the Cosmos SDK blockchain platform, providing financial services to users and facilitating the deployment of the DeFi ecosystem. The network was founded by individuals who recognized the need for a decentralized financial system that prioritizes transaction speed and security while providing innovative financial tools to users. Sei utilizes its 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.

Neutron is a DeFi platform in the Cosmos ecosystem that introduces a paradigm shift in cross-chain communication. Neutron aims to become the first consumer chain on Cosmos, operating under an open policy and enabling 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 allows developers to access functionalities from other blockchains, opening up a new realm of possibilities and unleashing the true potential of blockchain technology. By adopting security from the Cosmos Hub, Neutron fosters a secure and reliable infrastructure that lays the groundwork for mutually beneficial relationships within Economic Zones.

Celestia is a project within the Cosmos ecosystem that provides consensus and security on demand. It aims to advance blockchain deployment by eliminating the need to bootstrap new consensus networks, significantly reducing overhead. Unlike traditional blockchains, Celestia's throughput scales with the number of users due to the unique property of data availability sampling. What sets Celestia apart is that its blockchain does not rely on the honest majority assumption to ensure state validity, thereby providing the highest standards of security. Additionally, Celestia's flexible design allows developers to define their own execution environments, granting them freedom and creativity. Celestia supports various types of Rollups, including EVM and Cosmos SDK, providing solutions for building interconnected blockchain networks with security and scalability.

Stride is a liquid staking platform built on the Cosmos blockchain that revolutionizes token staking and DeFi. By allowing users to stake any IBC-compatible tokens and receive stTokens as rewards, Stride unlocks liquidity and enables users to enhance their yields through DeFi trading. This innovative approach allows users to maintain flexibility while earning rewards, fostering a more vibrant and productive ecosystem. The platform's emphasis on security has undergone multiple audits to ensure the safety of user assets. The significance of Stride lies in its reshaping of the staking landscape, bringing enhanced liquidity and yield opportunities to the Cosmos ecosystem, and driving growth in the broader DeFi space through seamless integration and user-centric governance.

Leap Wallet has launched an innovative mobile browser extension and application aimed at optimizing Web3 interactions on a simplified and secure basis. Leap emphasizes user autonomy, ensuring that all assets remain under user control, adhering to the decentralized philosophy. Fast and cost-effective asset swaps facilitate DeFi investments and NFT explorations. Leap has a wide collaboration with dApps, Aggregators, DEXs, and Marketplaces.