Cosmos is a network of independent parallel blockchains that are each powered by classical BFT consensus algorithms like Tendermint consensus. It provides modular development framework for Cosmos SDK and supports Inter-blockchain Communication(IBC) protocol. This article would explain each key concept Cosmos covers.

Blockchain 1.0

Representative: Bitcoin

Technology Innovation: Decentralization

Pain Points: Difficult for development

Blockchain 2.0

Representative: Ethereum

Technology Innovation: Application scene

Pain Points: low expandability

Blockchain 3.0

Representative: Cosmos

Technology Innovation: Cross-chains

The general architecture of traditional blockchain is data layer, network layer, consensus layer, incentive layer, contract layer and application layer from bottom to top.

For example, the reason why Bitcoin is so difficult to develop is that it has no hierarchy and the data is all written in one code. Then the problems of data separation and isolation occur.

Ethereum isolates the application layer and the contract layer (referred to as EVM) from the other four layers, so that developers can focus on the development of the application layer.

As for Cosmos, the remaining 4 layers of incentive layer + consensus layer (Tendermint consensus) are separated from network layer + data layer (IBC), and its application layer + contract layer (Cosmos SDK).

As is mentioned above, these blockchains 1.0 or 2.0 applications have suffered from a number of drawbacks because of their portraits, including their gross energy inefficiency, poor or limited performance, and immature governance mechanisms. An ideal solution is one that allows multiple parallel blockchains to interoperate while retaining their security properties. Then Cosmos appears.

Tendermint consensus is a BFT-based POS consensus algorithm, mainly composed of consensus engine Tendermint Core (core bottom layer) and interface ABCI (application-oriented). Consensus rules: BFT, Byzantine Fault Tolerance.

What is Byzantine Fault Tolerance then? For example, Silvo and Jinx are going to attack Zaun, but their messages are not interacted with each other. Jinx does not want to attack the city, so she destroys and confuses the public with false information. Byzantine fault tolerance is a consensus that allows Jinx to destroy while ensuring the final decision-making results. In terms of POS, it's not just about the computing power of machines. The participation depends on the number of tokens to be staked each. The upper limit of core parameter nodes is 100. It is not very high, but the fault tolerance rate is relatively high, 1/3 of the node failures are available (the network is still available if 1/3 of malicious nodes are attacked)

ABCI, it is a Socket protocol interface with two advantages.

1. It is programming-friendly. There are only 2 kinds of programming languages available in EVM, but ABCI supports Java, C++, GO, etc.

2. It enables the consensus layer and the network layer to be more composable, which means that the bottom layer of the blockchain can be modularized.

It is a general framework, benchmarking against EVM which simplifies the process of building a blockchain application layer under Tendermint BFT consensus. In common, it provides a series of functions for the construction of the main network.

1. Staking: You can define the amount of mode time to stake.

2. Slashing: Defines malicious nodes and punishment mechanisms.

3. Governance: How Governance governs the public chain.

4. IBC module.

Cosmos SDK can be seen as a legal law, each chain which is built on is DAO. All the DAOs have to follow such law.

IBC is a module in the cosmos SDK. It is a standardized inter-chain communication protocol, which benchmarks against the traditional Internet TCP/IP protocol. For example, the traditional TCP/IP architecture includes (protocol number, port number, IP address). IBCs are (handshake, port ID, Channel ID). To be more specific, if JINX transfers 100 ATOMs from the Polygon chain to Solana, the entire process includes 4 parts.

1. Verify whether the asset is legal valid (validators)

2. Polygon sends proof that ATOM is locked

3. Solana verifies Polygon's proof

4. Solana creates a voucher for 100 ATOMs, which can be circulated until they return to Polygon and then unlock Polygon's original ATOM.

The ideal state of Cosmos: each hub is linked to zone, ethereum, bitcoin, and there is also a link between each hub.

Potential competition: Evmos hub - Compatible with Ethereum EVM. If it is listed then the token is ERC20, it can be circulated among the entire cosmos network, which is easy to attract ETH, and EVM developers and users to join this ecology. Its experience is currently better than cosmos hub.

I appreciate the original intention of cosmos. The concept of "modularity" is introduced to solve the original impossible triangular problem. In order to realize the advent of real DID products, the realization of cross-chain information exchange is the top priority.

Atoms are the token from Cosmos Hub (not Cosmos). The amount of atoms staked towards a validator defines the frequency by which the validator may propose a new block and its weight in votes to commit a block.

The number of new atoms created per block depends on the percentage of the atom supply which is staked in the network. The target rate of atoms put up as collateral to secure the network is at least ⅔ of the total atom supply (as is mentioned above-- node failures). If less atoms are staked, atom supply via block rewards increases up to a ceiling of 20% annualized inflation of the total supply. If more than ⅔ are being staked, atom block rewards decrease gradually down to a floor of 7% annualized inflation.

Thus, in order to strengthen the safety of the network, Cosmos decides to introduce a secondary token named “photon“ as it reduces the liquidity of atoms.The photon as a secondary token is designed to control the inflation rate to to reach 0% through a feature of highly liquid.

The photon is likely to be distributed to bonded-atom, ether, and bitcoin holders through a hard spoon, which is comparable to an airdrop, to attract users.

In addition to the two Cosmos tokens, atom and photon, there are plans to whitelist other cryptocurrencies (e.g. bitcoin or ether) for paying transaction fees on the network, once those tokens become available on the Cosmos Hub.

Defi-Llama shows the TVL for Cosmos Atom as $342,303 current and a live market cap of $8,011,312,576 USD.

TVL ratio =market cap/TVL =110.13677 (data based on following

• Total atom supply at launch: 260,906,513

• current annual inflation: set as 6%-20%, current 10.6%

  The following equation shows the cash flow in the network.

• *CRV：*commission rate

• *SDV：*stake-weighted share from delegation

• *PP：*overall photon

• AP：atom provisions

Cosmos is a network of independent parallel blockchains that are each powered by classical BFT consensus algorithms like Tendermint consensus. It provides modular development framework for Cosmos SDK and supports Inter-blockchain Communication(IBC) protocol. This article would explain each key concept Cosmos covers.

Blockchain 1.0

Representative: Bitcoin

Technology Innovation: Decentralization

Pain Points: Difficult for development

Blockchain 2.0

Representative: Ethereum

Technology Innovation: Application scene

Pain Points: low expandability

Blockchain 3.0

Representative: Cosmos

Technology Innovation: Cross-chains

The general architecture of traditional blockchain is data layer, network layer, consensus layer, incentive layer, contract layer and application layer from bottom to top.

For example, the reason why Bitcoin is so difficult to develop is that it has no hierarchy and the data is all written in one code. Then the problems of data separation and isolation occur.

Ethereum isolates the application layer and the contract layer (referred to as EVM) from the other four layers, so that developers can focus on the development of the application layer.

As for Cosmos, the remaining 4 layers of incentive layer + consensus layer (Tendermint consensus) are separated from network layer + data layer (IBC), and its application layer + contract layer (Cosmos SDK).

As is mentioned above, these blockchains 1.0 or 2.0 applications have suffered from a number of drawbacks because of their portraits, including their gross energy inefficiency, poor or limited performance, and immature governance mechanisms. An ideal solution is one that allows multiple parallel blockchains to interoperate while retaining their security properties. Then Cosmos appears.

Tendermint consensus is a BFT-based POS consensus algorithm, mainly composed of consensus engine Tendermint Core (core bottom layer) and interface ABCI (application-oriented). Consensus rules: BFT, Byzantine Fault Tolerance.

What is Byzantine Fault Tolerance then? For example, Silvo and Jinx are going to attack Zaun, but their messages are not interacted with each other. Jinx does not want to attack the city, so she destroys and confuses the public with false information. Byzantine fault tolerance is a consensus that allows Jinx to destroy while ensuring the final decision-making results. In terms of POS, it's not just about the computing power of machines. The participation depends on the number of tokens to be staked each. The upper limit of core parameter nodes is 100. It is not very high, but the fault tolerance rate is relatively high, 1/3 of the node failures are available (the network is still available if 1/3 of malicious nodes are attacked)

ABCI, it is a Socket protocol interface with two advantages.

1. It is programming-friendly. There are only 2 kinds of programming languages available in EVM, but ABCI supports Java, C++, GO, etc.

2. It enables the consensus layer and the network layer to be more composable, which means that the bottom layer of the blockchain can be modularized.

It is a general framework, benchmarking against EVM which simplifies the process of building a blockchain application layer under Tendermint BFT consensus. In common, it provides a series of functions for the construction of the main network.

1. Staking: You can define the amount of mode time to stake.

2. Slashing: Defines malicious nodes and punishment mechanisms.

3. Governance: How Governance governs the public chain.

4. IBC module.

Cosmos SDK can be seen as a legal law, each chain which is built on is DAO. All the DAOs have to follow such law.

IBC is a module in the cosmos SDK. It is a standardized inter-chain communication protocol, which benchmarks against the traditional Internet TCP/IP protocol. For example, the traditional TCP/IP architecture includes (protocol number, port number, IP address). IBCs are (handshake, port ID, Channel ID). To be more specific, if JINX transfers 100 ATOMs from the Polygon chain to Solana, the entire process includes 4 parts.

1. Verify whether the asset is legal valid (validators)

2. Polygon sends proof that ATOM is locked

3. Solana verifies Polygon's proof

4. Solana creates a voucher for 100 ATOMs, which can be circulated until they return to Polygon and then unlock Polygon's original ATOM.

The ideal state of Cosmos: each hub is linked to zone, ethereum, bitcoin, and there is also a link between each hub.

Potential competition: Evmos hub - Compatible with Ethereum EVM. If it is listed then the token is ERC20, it can be circulated among the entire cosmos network, which is easy to attract ETH, and EVM developers and users to join this ecology. Its experience is currently better than cosmos hub.

I appreciate the original intention of cosmos. The concept of "modularity" is introduced to solve the original impossible triangular problem. In order to realize the advent of real DID products, the realization of cross-chain information exchange is the top priority.

Atoms are the token from Cosmos Hub (not Cosmos). The amount of atoms staked towards a validator defines the frequency by which the validator may propose a new block and its weight in votes to commit a block.

The number of new atoms created per block depends on the percentage of the atom supply which is staked in the network. The target rate of atoms put up as collateral to secure the network is at least ⅔ of the total atom supply (as is mentioned above-- node failures). If less atoms are staked, atom supply via block rewards increases up to a ceiling of 20% annualized inflation of the total supply. If more than ⅔ are being staked, atom block rewards decrease gradually down to a floor of 7% annualized inflation.

Thus, in order to strengthen the safety of the network, Cosmos decides to introduce a secondary token named “photon“ as it reduces the liquidity of atoms.The photon as a secondary token is designed to control the inflation rate to to reach 0% through a feature of highly liquid.

The photon is likely to be distributed to bonded-atom, ether, and bitcoin holders through a hard spoon, which is comparable to an airdrop, to attract users.

In addition to the two Cosmos tokens, atom and photon, there are plans to whitelist other cryptocurrencies (e.g. bitcoin or ether) for paying transaction fees on the network, once those tokens become available on the Cosmos Hub.

Defi-Llama shows the TVL for Cosmos Atom as $342,303 current and a live market cap of $8,011,312,576 USD.

TVL ratio =market cap/TVL =110.13677 (data based on following

• Total atom supply at launch: 260,906,513

• current annual inflation: set as 6%-20%, current 10.6%

  The following equation shows the cash flow in the network.

• *CRV：*commission rate

• *SDV：*stake-weighted share from delegation

• *PP：*overall photon

• AP：atom provisions