Cosmos Hub (ATOM)
Cosmos is an open-source interchain network developed by Tendermint. It enables different blockchains, known as zones, to communicate and exchange data, all connected through the Cosmos Hub. This hub is powered by the Atom token. The ultimate goal of Cosmos is to establish an "Internet of Blockchains," a decentralized network where blockchains can interact seamlessly. Cosmos addresses the challenges of sovereignty, scalability, and sustainability while providing interoperability for connecting layer 1 blockchains.
Overview
History
In 2014, Jae Kwon founded Tendermint, laying the groundwork for the Cosmos ecosystem by pioneering the use of Byzantine Fault Tolerance (BFT) in a Proof-of-Stake (PoS) format. The project aimed to tackle issues related to speed, scalability, and environmental impact associated with Proof-of-Work (PoW). Ethan Buchman later joined, and together they developed the Cosmos Software Development Kit (SDK) to simplify blockchain development and create a decentralized network of interoperable blockchains. In 2016, the first Cosmos whitepaper was published, and by the next year, the project raised approximately $16.8 million. The Cosmos Network architecture was established, and early prototypes were developed. Inter-Blockchain Communication (IBC) was introduced in 2018, and the network has since gained traction with projects utilizing the Cosmos SDK. A significant upgrade, Hub Theta, was launched on April 13, 2022, introducing interchain accounts and updated versions of both the Cosmos SDK and IBC.
| Ticker | ATOM |
| Category | Cryptocurrency |
| Website | http://cosmos.network/ |
| @cosmos | |
| Telegram | cosmosproject |
| https://www.reddit.com/r/cosmosnetwork | |
| Contract Addresses | |
|---|---|
| cosmos | uatom |
| evmos | 0xc5...d6 Copied! |
| osmosis | ib...B2Copied! |
| canto | 0xec...65Copied! |
| kava | 0x15...e3Copied! |
| archway | ib...b2Copied! |
| binance-smart-chain | 0x0e...35Copied! |
Architecture
The Cosmos network consists of three layers: the application layer, the consensus layer, and the networking layer. Tendermint BFT is incorporated into the consensus and networking layers, while the Cosmos SDK is utilized in the application layer. This architecture connects these layers using open-source tools to provide a secure environment for developing decentralized applications (dApps).
Tendermint Byzantine Fault Tolerance (BFT)
Cosmos SDK tools use Tendermint BFT by default, a Proof-of-Stake consensus protocol that simplifies the development of blockchains by packaging the networking and consensus layers into a single engine. It connects to applications using the Application Blockchain Interface (ABCI), allowing developers to focus on application development. Validators in Tendermint have voting power and participate in the consensus protocol by voting on blocks. The consensus protocol involves a set of validators who vote to achieve consensus on each block.
Cosmos SDK
The Cosmos SDK is a framework designed to facilitate application development on top of Tendermint BFT. It emphasizes modularity and capabilities-based security, allowing developers to use their preferred programming languages. CosmWasm is a module within the SDK that enables the execution of WebAssembly bytecode.
Cosmos Hub
The Cosmos Hub is the central blockchain within the Cosmos ecosystem. It functions as a multi-asset distributed ledger, facilitating token transfers between zones through a special IBC packet called a "coin packet." Transactions are executed by the sender, hub, and receiver blockchains.
Inter-blockchain communication (IBC)
IBC is a protocol that enables the transmission of messages and data exchange between heterogeneous chains, connecting them to the Cosmos Hub.
ATOM
ATOM is the primary token used within the Cosmos Hub. Holders can delegate their ATOM to validators who contribute to the blockchain's security and governance. In return, they can earn ATOM rewards through Proof-of-Stake.
Tokenomics
ATOM has a total supply of 260,906,513 tokens. These tokens are earned through staking rather than mining. In 2017, two private sales and one public sale raised a total of $16 million. 80% of the tokens were distributed to investors, with the remainder going to All In Bits and the Interchain Foundation. The target staking ratio is two-thirds of the total token supply. If the amount of staked ATOM exceeds this ratio, issuance will decrease to ensure liquidity. Conversely, if the ratio falls below expectations, issuance will increase until the target is met.
Fees
Transaction fees are sent to the distribution module and divided among the Community Pool, delegators, and validators. Interchain Security incentivizes validators and delegators by maintaining the two-thirds staking ratio. A global fee model will start with a whitelist of accepted tokens and corresponding minimums, eventually shifting to a single ATOM floor fee that adjusts based on network demand.