Cosmos is an Ethereum-based cryptocurrency that offers multiple benefits to its users. First of all, it provides a voting function, wherein you have the ability to decide which blocks to approve or reject. In addition, you can delegate tokens to other validators, and still earn a portion of the block reward. The platform was created by Jae Kwon, who had previously worked on Tendermint. He then teamed up with Ethan Buchman and Zarko Milosevic to create Cosmos.
AtOM
ATOM Crypto is a primary token of the Cosmos Hub, a blockchain project that seeks to secure interchain services. The token is used for three main purposes: as a spam-preventing mechanism, as a fee payment (sometimes proportional to the computation required for the transaction), and as a “bond” to earn block rewards. The more ATOM Crypto you stake, the more secure the Cosmos Hub becomes.
ATOM is a proof-of-stake token, meaning that it must be staked to participate in the Cosmos network. This gives you the right to vote for proposed network changes and earn ATOM in exchange. However, you must ensure that you’re not acting dishonestly, or you’ll be penalized.
The Cosmos platform is powered by a protocol called Photon. Each zone can use its own tokens, and validators in hubs can receive their transaction fees in any combination of tokens. The Cosmos infrastructure also allows developers to connect their projects, which is important for protocol compatibility. As a result, over 260 projects have already adopted Cosmos’ infrastructure. Eventually, it is possible that Cosmos will connect most blockchains.
Peg Zone
The Cosmos crypto ecosystem aims to provide interoperability among its users. It supports Tendermint-based chains, which can connect with Cosmos by adapting their IBC protocol. It also supports probabilistic-finality chains. It does this by implementing a special type of proxy-chain called a Peg Zone Crypto.
The first Peg Zone in Cosmos is for Ethereum. This will enable the movement of ERC20 tokens and Ether. The exact specification for this feature is still in development. The peg zone repository is codenamed peggy. It supports a large number of zones and is designed to work with many of these.
The infrastructure of a Peg Zone is complex, and it needs to be designed to work with specific blockchains. For example, the design for a Peg Zone for Bitcoin would be very different from one for Ethereum. It also needs to be able to sign transactions and be recognized by the blockchains connected to it. The team behind the Peg Zone says it will be worth connecting only a few blockchains in the future.
Tendermint
Tendermint is a cryptocurrency built on the Cosmos blockchain. It aims to facilitate distributed network development and is a core contributor to the Cosmos network. Its architecture enables developers to tap into each step of the consensus process, which makes it possible to build more efficient tools.
Its network is dual-layered, allowing it to facilitate interoperability with other PoS networks. It also allows developers to develop applications using its generic engine, allowing them to focus on the application development. The system’s Byzantine Fault Tolerance (BFT) protocol allows it to continue functioning even if a percentage of validators fail or act maliciously.
Tendermint also enables high transaction throughput within the Cosmos ecosystem. Its instant finality consensus mechanism ensures that transactions are final when blocks are created. This prevents changes to the transactions. Tendermint’s Byzantine Fault Tolerant design means that it can continue to operate even if one-third of the participating nodes fail to communicate or act maliciously.
