According to the official 2022 outlook report released by Cosmos, it is expected that in 2022, the Cosmos ecosystem will realize a multi-chain system constructed by 200 blockchain networks, and each chain will carry other protocols.
Definition of Cosmos
Let’s first talk about what Cosmos is.
Cosmos is a heterogeneous network that supports cross-chain interaction launched by the Tendermint team. It is an application and service ecosystem that uses the IBC (Inter-Blockchain Communication) protocol to exchange digital assets and data.
Different blockchains communicating via IBC
Cosmos is known as the “Internet of Blockchains” and is also considered to be the 3.0 version of the blockchain, which aims to solve the problems of blockchain interoperability and scalability and improve transaction speed. Its inter-blockchain communication protocol can realize the interconnection of blockchains and support the transfer of assets between different blockchains.
Since 2017, blockchain projects have experienced a blowout rise. However, behind the gratifying growth trend, people have also noticed that most projects lack the ability to interconnect with other blockchain projects and become isolated network systems.
Therefore, cross-chain technology has gradually entered everyone’s field of vision, and Cosmos is one of the key cross-chain projects.
So how does Cosmos achieve cross-chain and interconnection between chains?
First, Cosmos uses the Cosmos-SDK to build the first blockchain in the system: the Cosmos Hub. The other blockchains in this system, which can be called zones, all interact directly with the Cosmos Hub.
The Cosmos Hub connects all other blockchains built on top of the Cosmos Network, and together they create a hub-and-spoke model for connectivity.
Various types of chains (such as Bitcoin, Ethereum, etc.) can use the Cosmos-SDK to build their own blockchain partitions, and then use IBC to interact with the Cosmos Hub.
In this way, the Internet of Value of Cosmos is established.
Advantages and disadvantages of Cosmos cross-chain technology
Technological Innovation: Chain Creation – Tendermint
For the existing problems of Bitcoin and Ethereum, Cosmos can propose effective solutions.
The disadvantage of Ethereum is that it does not simplify the development of the blockchain itself, and it also has the disadvantages of limited scalability, relatively low flexibility granted to developers, and limited sovereignty per application.
Therefore, Cosmos proposes Tendermint, which is a solution that packages the network and consensus layers of the blockchain into a common engine, allowing developers to focus on application development instead of complex underlying protocols, and it is easy to get started.
Cosmos is not limited to Tendermint chains. In fact, any kind of blockchain can be connected to Cosmos. This is thanks to Cosmos leveraging two types of scalability: vertical scalability and horizontal scalability.
Cosmos will offer very good vertical scalability at launch, which will be a major improvement over current blockchain solutions themselves. Later, a scale-out solution is implemented after the IBC module is completed.
Cosmos SDK, which simplifies the process of building top secure blockchain applications on Tendermint BFT. It is based on two main principles: modularity and function-based security.
Another advantage of the Cosmos SDK is that its modularity allows developers to port any existing blockchain codebase that already exists in Golang on it, with ease and simplicity.
Whether the rising star can regain market recognition and strengthen the inclusiveness and inclusiveness of the ecosystem
From the perspective of the entire ecosystem, there are more than 260 Cosmos ecological projects, and more than 510 Polkadot ecological projects on the same track. Both cover finance, infrastructure, NFTs, stablecoins, and more.
Polkadot is more popular in terms of the number of applications, more participants, and higher architecture applicability. Cosmos is slightly lacking in this regard, which is one of the reasons why it hasn’t been able to grab the top spot on the track since its launch in 2017.
Recently, the popularity of Cosmos has gradually recovered, which is both an opportunity and a challenge. Taking the lead in how to capture the market and gain greater acceptance and recognition from users is one of the key points of Cosmos’ later ecological development.
Whether the complexity of the technical level can be fully implemented
Cosmos is committed to technological innovation. In order to reduce the difficulty for developers to develop applications on the chain, the Cosmos SDK framework has been built. With the Cosmos Hub as the center and other chains beside it, it constitutes a blockchain Internet.
The overall technical structure is mostly new, and the main development team has insufficient experience in the industry, and there are not many representative works. In the early stage of construction, more manpower and material resources need to be invested, and in the later stage, interconnectivity with other chains needs to be achieved to complete practical applications. It is more difficult and time consuming.
At that time, whether it can still occupy a place in the market is still unknown.
Can flexibility and security coexist?
Cosmos focuses on how to reduce the difficulty of asset transfer and pays attention to efficiency. But at present, its cross-chain design is more like a set of framework models, which is more idealistic.
Its sub-chain only needs to pledge a certain number of Atoms to connect to the Cosmos Hub. The process is simple and fast, and the cost is lower.
This also means that it is more vulnerable to varying degrees of attack, has relatively low security, but has a higher level of flexibility.
Cosmos ecological development status
As of January 5, 2022, there are 8 projects with the top 300 market capitalizations in the Cosmos ecosystem, and more than 260 projects built on the Cosmos ecosystem, second only to the Ethereum ecosystem.
Cosmos Ecological Project Market Value Ranking
The performance of the Cosmos ecosystem in 2021 is relatively quiet, but since 2022, there have been more and more discussions on Ethereum and modular blockchains, and the popularity is quite high. Many people think that Cosmos will perform well this year.
2021 is the year that IBC enters the market, and the Cosmos main chain gradually forms a thriving interconnected economy. In 2022, the adoption of IBC will really come into its own thanks to Cosmos’ robust technology stack and developer-friendly blockchain framework Starport, with IBC’s interoperability built into it.
Taking a comprehensive look at various mainstream blockchain platforms, most developers prefer Ethereum, Cosmos and Polkadot.
At present, the ecology of Ethereum is the largest among the three, but its bottlenecks and limitations can be foreseen. The subsequent ecological development and trend of the industry will be more and more inclined to Cosmos and Polkadot.
However, the relationship between these three mainstream ecological platforms should be more complementary rather than competitive, and the platform’s pattern and goals should also be explored and developed to achieve a larger and better Web 3.0 vision.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/cosmos-heats-up-gradually-can-it-stand-out-in-the-new-year/
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