Bitcoin and Litecoin, the initial generation of blockchains, provided a means for consumers to conduct international transactions without the need for a middleman. The ability to create decentralized platforms and applications was provided with Ethereum’s second generation. These blockchains couldn’t communicate with other blockchains and had issues with speed and scalability. They also operated in silos.
The third generation of networks then emerged, offering scalability and blockchain interoperability for all previous and future blockchains. Cosmos is one of the initiatives that accomplish this in the most efficient manner.
The Cosmos project seeks to address three issues with cryptocurrency. This is the first step in reaching its objective of enabling blockchain interoperability. The blocks that allow activities on the networks of a cryptocurrency like bitcoin were being constrained by their size, which is 1 MB, the Tendermint Inc. developers found.
There are serious drawbacks associated with this scalability issue, including a protracted transaction processing time and hefty validation costs.
Cosmos – One Cohesive Blockchain Ecosystem
Cosmos was established back in 2014 when the majority of us had no idea what blockchain technology or cryptocurrencies were. The person behind this initiative was Jae Kwon, whose years of thorough research built the foundation for Cosmos. His goal was to create a blockchain that required less energy than Bitcoin.
And Cosmos has the distinction of enabling interoperability while preserving the sovereignty and control of individual blockchains. For users, this implies that even while they are using a blockchain as part of the Cosmos ecosystem, they can each take part in its governance and utilize its native token because the blockchain has its own system separate from Cosmos.
The first of tens of thousands of such zones was the Cosmos Hub. In a sense, it serves as the hub for all zones. ATOM, which most people consider to be the essential token for capturing the worth of the network effect of Cosmos, was selected as the native coin for the Cosmos Hub.
You can operate a validator node and protect the Cosmos Hub using ATOM. You may help with the administration and security of the Cosmos Hub. There are currently 149 validators available from which you can assign your ATOM if you don’t want to manage your own validator node.
Osmosis: The Uniswap of Cosmos
Osmosis has its own zone and is the biggest DEX in the Cosmos network. Because the zone is IBC-compatible, it can communicate with every other zone in the network.
Osmosis even outperforms the Cosmos Hub in terms of IBC transactions, which it now settles at 219,000 per month. An automated market maker (AMM) protocol is osmosis. Since it rewards liquidity providers for their contributions, it has significant incentives for them.
In essence, Akash Network is a decentralized cloud. The goal is to upend the centralized cloud sector (dominated by Amazon, Google). Akash wants to dramatically reduce the cost of storage by decentralizing this sector. Another objective is to encourage greater competition among cloud providers.
In the Cosmos network, Akash has a dedicated zone and supports IBC. One of the most outstanding projects in the Cosmos ecosystem is undoubtedly Akash because of its distinctive concept.
It enables decentralized VPN applications and is a decentralized peer-to-peer bandwidth marketplace called Sentinel. It is based on the Cosmos SDK, just like all other Cosmos protocols.
Because it cannot be hacked by a central entity, a decentralized VPN raises the bar for privacy features. Since it doesn’t run on a centralized server, it cannot be stopped. It is therefore more dependable than a centralized VPN.
The Bottom Line
The Cosmos ecosystem takes pride in being one of the crypto market’s most resilient networks. The Cosmos SDK not only addresses scalability difficulties and gives developers autonomy, but it also connects other blockchains by offering coworking space.
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