Cosmos – The Internet of Blockchains

Related Topics

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp

Cosmos is considered the Internet of Blockchains because it aims to solve a major problem that is plaguing the blockchain space. A blockchain, essentially, is like an accounting ledger. It records each transaction – called a block – after verification which cannot be altered once recorded. Blockchains can also be improvised to serve different purposes – like supply chain management. But the caveat is that each blockchain is a unique world of its own. The code that forms blockchains may be similar but their working is different and; hence, they suffer from the problem of interoperability.

Blockchains cannot communicate with each other as is. They require a third-party resource to be able to do so. But as the market becomes flooded with unique and problem-specific blockchains, their interconnectivity can offer many more benefits. Cosmos is called the Internet of Blockchains because it connects blockchains as well as enable developers to create their own blockchains – all the while creating a universe of all the different worlds inside it.

How does Cosmos work?

There are three major aspects to the technology of Cosmos:

  • Tendermint is the native and novel consensus protocol which enables developers to create their proof-of-stake blockchains over Cosmos
  • The Cosmos SDK enables developers to build decentralized applications on top of their blockchains
  • The IBC or the Inter-Blockchain Communication Protocol is the technology that allows the connectivity of blockchains

Cosmos’s technology not only allows different blockchains to interact and share data with each other but also enable developers to create their own blockchains much more efficiently. Every blockchain created or joined with the network is called a zone. These zones operate independently than Cosmos – each having their own security, governance and validators. Zones interact with each other through the Cosmos Hub which maintains all records of each zone. While other projects offer similar function of interoperability – namely Polkadot – they often times compromise on the sovereignty of individual blockchains.

Is Cosmos a good bet?

Cosmos was operating in single figures but it exploded during 2021 amidst the bull run. The cryptocurrency started off the new year with a price level of $6.49 and reached towards its all-time high of $32.14. Subsequently, the market suffered a brutal crash and the network’s native token ATOM declined to $10.34. The market trend has turned bullish again and Cosmos is surging. At the time of writing, ATOM stands at a price level of $19.14. The price has jumped up by 18% in the daily timeframe while the weekly performance has been a positive change of 34%.

The recent performance coupled with the strong fundamentals of the network hint towards a strong future for the cryptocurrency. The problem of interoperability is becoming widespread and solutions like Cosmos will increase in importance. The price predictions for the cryptocurrency are bullish. According to the estimates of Wallet Investor, ATOM will be operating at a price level of $74.70 in five years’ time. Digital Coin Pricesuggests a price of $66 by 2026.

Leave a Comment

Your email address will not be published. Required fields are marked *

Latest Posts

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

100% free. stop anytime no spam