The Cosmos blockchain was created to allow distributed ledgers to communicate without relying on a single server. The Cosmos white paper was published in 2016, and the network quickly became known as the Internet of blockchains by its founders, who wished to build an interoperable platform of open source blockchains that could speed transactions between them. Interoperability has been a difficult problem for developers since the inception of blockchain. Interoperability is what allows two or more systems to communicate with one another. Consider emails sent from a Gmail account to a Hotmail account or, an Android phone that can exchange info with Apple's iOS.

As in the case of a defined blockchain, single structures are built first. Still, getting the systems to interact is vital. Otherwise, they are ineffective and may act as a barrier to technological adoption. Cosmos, with over 151 billion USD in digital assets under administration, is the first totally free platform to facilitate interoperability between diverse systems. Cosmos (ATOM) is the cryptocurrency that runs and secures the ecosystem of blockchains that are built to grow and communicate with one another.

How does it work

The Cosmos network is a growing ecosystem of networked apps and services. To ensure that blockchains can communicate securely, it employs hubs, the Tendermint consensus algorithm, and the Inter-Blockchain Communication (IBC) protocol. Smart contracts are used by certain platforms to connect with one another. Tokens are locked in on one platform, while the same quantity of the asset is minted on the other. Wrapped tokens are an example of this procedure. Instead of moving Bitcoin (BTC) from the Bitcoin blockchain to another platform, such as Ethereum, the BTC is locked in a functioning blockchain that offers the service. Wrapped Bitcoin (wBTC), for example, is issued as pegged tokens on another network.

Cosmos, on the other hand, provides open-source tools that enable developers to create decentralized and sovereign blockchain apps called zones rather of depending on a single chain. Cosmos smart contracts power the zones. The Cosmos team created a software development kit (SDK) that enables developers to create zones faster, easier, and cheaper than competing platforms such as Ethereum. It reduces complexity by providing the most popular blockchain functions, such as staking, governance, and tokens, using well-known and simple-to-use software development platforms like GO. Developers have complete freedom and flexibility in creating plugins and adding whatever functionality they choose.

History and developers

Cosmos' development is the product of collaboration between several teams. The Swiss Interchain Foundation (ICF), a non-profit organization that sponsors and promotes open source blockchain initiatives, and the Tendermint team provided the first resources and funding for its development.

Jae Kwon and Ethan Buchman, two software developers, co-founded the Cosmos network in 2014 while also developing Tendermint, the consensus algorithm that will power Cosmos. Kwon and Buchman wrote the Cosmos white paper in 2016, and the software was launched in 2019. In 2017, the Interchain Foundation raised nearly 17 million USD in its first round of financing with a two-week initial coin offering (ICO) of the ATOM token. Tendermint Inc. secured 9 million USD in a Series A investment round in 2019 to continue the project's development. Jae Kwon departed the project in early 2020, claiming to keep active regardless, while Ethan Buchman, the other co-founder, is still president of the Interchain Foundation Council. Cosmos has received funding from numerous famous cryptocurrency investors, including Paradigm, Bain Capital, and 1confirmation.