The internet of blockchain is up and brewing. Cosmos, a blockchain to connect all blockchains, came live with the release of the software named Cosmos Hub, the first series of proof-of-stake (PoS) blockchains that will be created in the Cosmos ecosystem. This is a significant step in the blockchain world because it opens it to many opportunities.
This will allow the company to establish an extensive ecosystem of validators and stakeholders. We can all agree that since Satoshi Nakamoto released his masterpiece in the world, we have all come a long way. However, no progress comes easy and we had a fair share of problems that came with higher adoption rate like scalability and interoperability. But Cosmos is here to change that.
Cosmos hasn’t fully gone functional by this we mean that users of the network won’t be able to swap tokens between blockchains or otherwise connect to Cosmos Hub with existing blockchain networks. Everyone is just waiting for validators to vote to activate what is called Inter-Blockchain Communication (IBC) protocol.
The first phase was launched after three years of extensive planning and research. They introduced their concept back in 2016, over which they were able to raise over $16 million in an initial coin offering in 2017.
What is it made of?
This cosmo is also made up of many independent, parallel blockchains, called zones. Obviously the blockchains need a source of energy hence they are all powered by Byzantine fault-tolerant consensus protocols like Tendermint.
For those of you who are confused about the roles of validators, in a proof-of-work (PoW) system, they are the miners who compete for block rewards by operating computer servers and expending large amounts of electricity. However in a proof-of-stake (PoS), the validators are selected by the system based on a separate metric of staked tokens in order to participate in block creation.
What comes next?
So, for now you can’t trade using their network of their network currency – ATOM tokens. The tokens will be intended to act as “the collateral that people put at risk to be [validators] in the system” and will be strictly used as the “mechanism for selecting membership into the system.”
But when all of that is set you will be able to swap heterogeneous cryptocurrencies and non-fungible tokens after it has been voted twice by validators. It will be like leasing out crypto assets to earn returns.
All of this will make more sense when Cosmos is up and running!