The Cosmos project has set itself a goal that is currently waiting in the blockchain sector: to achieve interoperability. The possibility of having different blockchain projects working on the same protocol without affecting each other.
So, at best , each Blockhain project has its own use case or attempts to solve a specific problem. Bitcoin – depending on who you ask – appears as a digital gold , Ethereum offers smart contracts, Ripple wants to take over international interbank trading with XRP. But currently all of these projects work in parallel with each other, there is little exchange. In other words, they are barely interoperable.
The individual zones and interoperability
Cosmos wants to tackle this problem now. The goal is, it can be seen from the official white paper of Cosmos , run in parallel circuit block chains, without these in their security precautions and individual use cases get in the way. Cosmos understands itself as a blockchain network, which in turn is composed of different blockchains. This designates the development team as “Zones”. In doing so, they rely on the Tendermint BFT consensus algorithm to maintain unity in the zones.
The first of these zones refers to Cosmos as the Cosmos Hub, the point of contact where blockchains can dock. In turn, it relies on the proof-of-stake mechanism and can be expanded to include additional zones as needed. The latter communicates with the individual zones via an “inter-blockchain” protocol. This promises the transferability of cryptocurrencies between the individual zones.
After all, the Cosmos platform also serves as the basis for new blockchain projects, precisely because of the interoperability it intends to produce. Thus, Cosmos provides its users the ability to make their own individual block building blocks of their own, publish them and – thank Cosmos – to connect with other blockchains.
The atom token
With all of this (planned) interoperability, one may ask oneself: why then do you need your own token? According to the White Paper, the Atom will enable tokens in the user to choose, validate and delegate – in line with the Proof of Stake Consensus mechanism. It also allows Atom tokens to pay fees to prevent spam on the network.
In 2017, the development team released the Atom Token via ICO. Collecting funds was rapid and successful: Cosmos reached its funding target within 28 minutes and sold 168 million tokens while earning $ 17.3 million. The team retained a 50 million ATOM share to drive the project forward.
Already launching projects on Cosmos
The Cosmos-based projects already launched include Binance’s decentralized exchange. The network also lists the projects Sentinel, the Lino Network, the Stable Coin Terra, the game application Loom and IRISnet.