Early Bitcoin and Ethereum investors profited handsomely.
All they had to do was an experiment with new technology, learn to mine, or just use the first dApps that offered free bitcoin to their users. Bitcoin has been around for more than a decade, and Ethereum has already had its greatest days. Everyone is questioning, Who’s next? in this scenario. The answer is Blockchain 3.0, as it is known among technophiles.
In this post, we’ll look at the Cosmos network and examine why it’s one of today’s most promising technologies, as well as what projects were built on it in 2020.
Cosmos isn’t a cryptocurrency or a distributed ledger technology. It is a decentralized network of parallel blockchains driven by BFT consensus algorithms like Tendermint. The network can grow to meet current traffic needs because it comprises several blockchains. As a result, project developers will no longer have to be concerned about scalability. Every dApp produced on the Cosmos network will be ready if the decentralization market becomes mainstream.
Both Bitcoin and Ethereum have an ancient, isolated architecture. The Proof-of-Work (PoW) technique was initially used on Bitcoin, the first public blockchain. Because Ethereum provided the ability to develop decentralized applications on top of this, it is presently not possible to have a single blockchain that can handle all of the traffic. This is why Ethereum’s network is congested. On the other hand, Blockchain does not go down like traditional servers; instead, it becomes prolonged and expensive to operate.
We can’t even discuss other blockchains because the most popular ones are either fork of the codebases built on top of these blockchains or are still in the experimental stage. Furthermore, the scalability constraints apply to all protocols that use a single blockchain, not just Ethereum.
Open-Source Tools for Cosmos Blockchains
Cosmos is working to make blockchain technology more compatible. Their vision might be summarized as developing a decentralized Internet of blockchains in which separate networks can communicate with one another. Cosmos can ensure that transactions are completed promptly and that blockchains preserve their sovereignty because they are part of the same ecosystem.
The Cosmos team makes it simple for any developer to construct their project on top of the network. Open open-source tools like Tendermint, the Cosmos SDK, and IBC (Inter-Blockchain Communications Protocol) are publicly available to link and interact with the Cosmos blockchains. New projects are joining the network and producing decentralized applications that are ready to use right away, so this ecosystem is rapidly growing. Let’s take a look at a handful of these projects that began in 2020.
TomiEx is a next-generation cryptocurrency exchange that uses the Cosmos blockchain to power its TEX coin. To reward users for their contributions to the community, the exchange employs the cutting-edge Proof-of-Stake (PoS) technology.
The initiative created the TEX symbol coin and set a tight limit of 575,000,000 TEX coins. The Cosmos-SDK framework develops TEX, making it simple for the team to secure the PoS algorithm. The TomiEx exchange has a built-in marketing mechanism for attracting new users thanks to PoS. The PoS technology will be on suspension once the number of unique users exceeds 200,000, and a reverse tool for burning token emissions will enable. The number of users will influence the number of tokens burned. More tokens will burn if the exchange has fewer users. The coin issuance will continue if the number of users increases again. The PoS algorithm is effectively in charge of the exchange economy.
It requires the Cosmos ecosystem for the entire mechanism to work. Cosmos employs the Proof-of-Stake (PoS) approach, rendering the consensus procedure entirely virtual. On a single blockchain, we’re talking about 200,000 unique users. Any other blockchain protocol does not allow for this. Cosmos made it feasible, and TEX holders can rest confident that their daily incentives will generate in real-time.
The Band Protocol is a decentralized oracle system that combines a data delivery network with a Cosmos-SDK-based blockchain for user-defined data requests and a support data oracle over many blockchains. Band becomes a cross-chain data oracle with Cosmos.
The Band Protocol used to rely on public datasets from which Ethereum smart contracts could request data. The procedure at the time relied on the team to keep these datasets up to date. They were engaging with data providers, but each entity’s onboarding was taking much too long. The team later joined the Cosmos network to create a new, customized oracle protocol that was faster, cheaper, and developer-friendly.
The new BandChain is based on the Cosmos SDK, which allows Band Protocol to quickly build an oracle on almost any blockchain, making it an utterly blockchain-agnostic service.
Aragon is a decentralized autonomous organization (DAO) that allows third parties to create their own DAOs by using pre-defined smart contracts quickly. This chain uses a PoS consensus approach to enable rapid and low-cost transactions between DAOs over the Cosmos network.
Because the team views governance as the pinnacle of any human institution, they’re making it simple for any project to integrate such a system into its network. Governance necessitates constant engagement with the community, which Ethereum cannot handle. As a result, the team decided to use the Cosmos SDK to create Aragon Chain’s functionalities. The chain will also support EVM by default, making it simple for them to deploy their existing apps on the newly formed chain without the need for additional work.
Instead of employing a direct bridge to the Ethereum mainnet, Aragon Chain might become a chain in the Cosmos network and interoperate with other chains, including Ethereum.
The OKEx bitcoin exchange team created OKExChain, a public blockchain. Furthermore, the chain is based on a forked Cosmos SDK chain and the foundation for the exchange’s ecosystem.
Any member in the chain can also become a super-node, allowing developers and enterprises to build decentralized applications and issue digital assets quickly. OKExChain builds on top of the Cosmos SDK to provide a scalable, efficient, and user-friendly programming experience. OKExChain supports many ecosystems in this fashion, allowing data transit between distinct isometric chains. The OKEx team has created a cross-chain toolkit that includes a variety of cross-chain protocols that enable new and current apps to interface with different chains easily.
This is a list of five projects that are part of the Cosmos ecosystem. With the modularity of its Cosmos SDK, it makes blockchain strong and simple to construct. If you’re a developer, feel free to contact any of these projects’ team members. You can learn how simple the implementation process was for them.
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