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An interstellar guide to the Cosmos blockchain

Decentralization is one of the most important and groundbreaking concepts introduced by blockchain technology. Through its revolutionary features, exchanging information can now be done and authenticated in a faster and more secure way. You can find a lot of blockchain projects nowadays that utilize this feature, changing many sectors of the industry as the world knows them.

However, despite the advantages blockchain technology ushered, it also came with issues such as limited interoperability with different blockchains—an issue that the Cosmos blockchain aims to address.

Marketed as the ‘Internet of Blockchains’, Cosmos envisions linking multiple blockchains to create a more robust community that can spur the development of blockchain technology on a wider scale. Are you curious to know more? Learn everything about Cosmos here at Cryptoshimbun!

What is Cosmos?

In a nutshell, Cosmos is a decentralized network composed of blockchains that can interoperate with each other. These blockchains utilise a proof-of-stake consensus protocol to ensure scalability, functionality and interoperability of other blockchains within the ecosystem. Also known as the ‘Cosmos Hub’, this blockchain project ensures that every transfer of information between networks is quick and secure.

Cosmos’ code was developed in 2014 by Jae Kwon. After running tests for 3 years, it was officially launched in 2017. Interchain Foundation, a Swiss non-profit organization, funded Kwon’s company to successfully develop and research the project.

Within the Cosmos network runs its native currency called ATOM. Through this token, members participating in the ecosystem can vote, settle fees and receive incentives through staking and verifying transactions. All the validators maintaining the chain are given ATOM tokens as their reward.

Into the Cosmos: How does it work?

To ensure interoperability, Cosmos is sectioned into different parallel networks that speed up transactions. These networks ensure that everything is in place through the use of open-source tools. Learn more about them below:


Zones are made up of independent blockchains working together to execute transactions within the network. Each of these networks can approve new accounts, transactions, vote and facilitate protocol upgrades to ensure that the system is not overwhelmed by requests. Once a ‘zone’ is connected in the Cosmos Hub, they can then communicate and work with each other.

Cosmos Hub

Think of this part as a place for all the blockchains to meet and connect. Through the Cosmos Hub, every zone can meet and access all the records within the ecosystem for seamless transactions.

Three primary parts of the Cosmos blockchain

The Tendermint Core

The Tendermint Core is a software designed to power the consensus inter blockchain communication (IBC) that contains the Tendermint Algorithm. Through this groundbreaking feature, all the layers within the ecosystem are linked, allowing every blockchain validator to communicate with each other and ensure the network’s robustness.

Additionally, IBC also ensures that private and public blockchains are also connected to allow seamless exchange of tokens with one another. The IBC works through tracking, bonding, Proof-of-Relay and validation.

Application Blockchain Interface (ABCI)

The ABCI or Application Blockchain Interface enables the replication of decentralized apps in the ecosystem in different programming scripts. Since this feature doesn’t follow a single programming language, the ABCI is versatile and can be used to develop any applications on the blockchain. It also serves as the link between Tendermint Core and the Cosmos SDK.

Cosmos SDK

The Cosmos SDK is an application layered on the Cosmos Network that enables developers to use the basic features of blockchain. This reduces the complex procedures developers have to go through by providing services such as governance, tokens and staking. Additionally, developers can tweak these features to their liking by adding plug-ins.

Members of the Cosmos blockchain

Since its release, Cosmos has already attracted a lot of potential partners as members of its ecosystem. Here are some of the companies and organizations that are a part of Cosmos:

Binance Chain

Binance Chain is a platform that features a lot of tokens for crypto users and the Binance Launchpad project. Built-in the Cosmos blockchain, the Binance Chain utilises a forked version of the Tendermint and the Cosmos SDK to create a parallel blockchain connected to the Binance Chain. Additionally, this network also has the Cosmos SDK ‘bank’ features which can be utilised to exchange basic tokens.


Akash Network is a decentralized cloud that supports the largest peer-to-peer wireless Internet of Things (IoT), Helium Network. This provides developers with an open, secure and permissionless space where they can process unused computing cycles. Additionally, the fees for computing the cloud is reduced by 90%.


eMoney is a European-based issuer of stablecoins. Built on the Cosmos blockchain, the money is backed by bank deposits and government bonds that can provide security and less volatility for cryptocurrencies.


IOV is another blockchain-based token built on the Cosmos. This platform builds protocols that ensure seamless transactions between blockchains and wallets, enabling users to send and receive digital currencies from a single point of origin.


IRISnet is a BPoS blockchain created on the Cosmos that allows interoperability between different blockchains to enable next-generation services for distributed business applications.

Launched in 2019, IRISnet focuses on small to medium business enterprises that can expand their reach. What’s more unique about IRISnet is that its technology features both off-chain and on-chain capabilities. It also has a proof-of-stake coin modelled after the Tendermint Consensus.


Kava is a DeFi lending platform for digital assets. Through this platform, users can lend and borrow digital assets without the need for intermediaries. Built on the Cosmos blockchain, users can lock their borrowed or lent assets into smart contracts and then exchange them in the US dollar index.

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