What is Cosmos, Tendermint?
Coming soon, Binance has released Binance Chain, which has become a big topic. The Binance Chain, which was developed by Binance and its community as a basis for a distributed exchange, has gained a high degree of attention due to the use of the “Cosmos” and “Tendermint” technologies in its development. In this article, I would like to explain “Cosmos” and “Tendermint”.
Before talking about Cosmos
As a prerequisite to understanding “Cosmos,” there is “scalability problem.” As you may know, many people who use Bitcoin or Ethereum (people who join the network) are blocked in the design of remittances with a fixed capacity of one block, resulting in high remittance fees arising in problems. Have you faced this problem in December 2017? In order to solve this problem, it is necessary to speed up the processing of the chain itself (first layer area) or to accelerate the movement outside the chain (second layer area). “Lightning network” and “Plasma” are areas of the second layer. “Cosmos” is made by software in the first layer domain.
What is Cosmos
“Cosmos” is a project to fit into the broader blockchain ecosystem. In the Cosmos network, there are two independent blockchains: ‘Hub’ and ‘Zone’.
The role of the “Hub” is to synchronize tokens with various blockchains, and to aggregate tokens and data in the “Zone”. In the area of “Hub”, swapping is possible using the IBC protocol (Inter-Blockchain Communication Protocol), which connects different blockchains such as Bitcoin and Ethereum, and manages communication between blockchains.
It acts as a bridge between separate blockchains such as Bitcoin and Ethereum, allowing for significant scalability improvements and swapping among different blockchains through the Cosmos network.
Tendermint, the foundation of Cosmos
An understanding of “Tendermint” cannot be avoided in understanding “Cosmos”. Tendermint consists of two components, Tendermint Core and ABCI (Application Blockchain Interface).
Tendermint Core consists of a consensus algorithm (PoS). Bitcoin’s Consensus Algorithm (PoW) is a mechanism that rewards the miners who finish calculating each block the fastest. There are a lot of people who know this mechanism, but in the case of Bitcoin, finality is decided only after 6 blocks are generated so that there are no mistakes or mishaps. This mechanism also takes more time for approval (the period until mining is over is also set, and it is possible to generate blocks in just 10 minutes with miner hashpower).
Tendermint Core refers to a consensus engine that uses a consensus algorithm (PoS). By adopting PoS, the time to block finality is reduced. With PoS, up to 1/3 validation nodes prove the remaining 2/3 nodes are free of corruption blocks even if they are stopped or corrupted. Because of this mechanism, a 33% attack applies to PoS currencies. However, as the number of participating nodes increases, it becomes more difficult to conduct a 33% attack.
Tendermint Core also uses program transition machines written in any programming language and replicates safely on many machines. This allows developers to develop any programming language.
Another component, “ABCI (Application Blockchain Interface)”, is a mechanism to connect Tendermint Core’s consensus engine with external applications. Other projects and Dapps developers can connect to the Dapps that developed this ABCI (Application Blockchain Interface).
Tokens used in Cosmos are Atom and Photon
“Cosmos” uses Atom and Photon tokens.
Atom tokens are for basic staking. You can join the Cosmos network though staking. Staking many Atoms in terms of the characteristics of the consensus algorithm can also provide rewards. It is listed on several exchanges where it can be bought and sold.
Market rank: # 18
Total Market Capitalization: $880,829,008 USD
24-hour volume: $77,573,164 USD
Circulating Supply: 190,688,439 ATOM
Total Supply: 237,928,231 ATOM
[Data as of 5/28/2019]
For Photon, Gas plays a role on the Cosmos network. Information about Photon will be provided in another opportunity.
We introduced Cosmos in this article. We think “Cosmos” has potential in crypto assets (virtual currency). It might be nice to keep a little bit handy for the future.