top of page

Beginner's Guide to Cosmos


Beginner's guide to Cosmos

What is Cosmos?

Cosmos
  • Cosmos is a rapidly expanding ecosystem of connected independent blockchains.

    • Cosmos aspires to be the blockchain-centric internet.

  • The majority of blockchains operate independently, limiting their economies to their own chains.

    • As a result, the value of DeFi is primarily restricted to Ethereum.

  • Switching between blockchains is a very frustrating process, and there are currently many unproven solutions.

  • As a result, one of the biggest opportunities in the cryptocurrency sector is making it possible for value to move between different blockchains.

  • Cosmos tries to accomplish precisely that, connecting blockchains to maximize the potential of various cryptocurrencies.

Who came up with Cosmos?

  • The Interchain Foundation backs Cosmos.

    • The Swiss non-profit organization known as the Interchain Foundation (ICF) was established to encourage the growth of Cosmos and the ecosystem that will contribute to the Cosmos Network.

  • The Cosmos Network was developed by Tendermint Inc.

    • The ICF has contracted software development firm Tendermint Inc.

    • Tendermint began developing the initial software in 2014.

  • Development has expanded over time to include numerous contributing teams.

What protocol does Cosmos use?

  • Cosmos uses the Proof-of-Stake protocol, which allows transactions to be completed in seven seconds and incur fees of less than one cent.


  • The Cosmos network is home to more than 250 blockchain applications at the moment. Cosmos was used to build some of the biggest cryptocurrencies, including:

    • Thorchain (RUNE), Terra (LUNA), Binance Chain (BNB), Crypto.com (CRO), and OKEx Chain (OKEx).

    • Cosmos is in charge of digital assets worth about $65 billion.

What distinguishes Cosmos?

  • Interoperability: This buzzword in cryptocurrencies refers to a blockchain's capacity to connect with other blockchains.

    • Cosmos uses hubs rather than bridges, which some people consider to be the solution. This makes it possible to transfer tokens without any friction between blockchains—normally, you can only move tokens between two blockchains at a time.

    • The Cosmos protocol for blockchain interoperability, IBC (inter blockchain communication), went live in 2021.

    • When IBC is enabled, Cosmos users can seamlessly switch between blockchains to take advantage of their strengths!

  • "Cross-chain composability" is something Cosmos is working on.

    • In addition to the Cosmos ecosystem's interoperability, other blockchain ecosystems, such as Ethererum and Bitcoin, are being connected.

    • For instance, you will be able to borrow money from Aave, a DeFi application based on Ethereum, and then lend it out on Polkadot.


  • Autonomy

    • Projects can launch their own sovereign blockchains when they build on Cosmos.

    • This means that they are not bound by the rules of any layer 1 protocol (as opposed to applications built on top of a blockchain like Ethereum, which are like tenants in a building owned by someone else).

    • As a result, blockchains can transfer value without having to deal with the problems that some of the largest blockchains, like Ethereum, have, such as high fees.

    • Cosmos-based projects can develop at their own pace, create their own economic model, and charge low transaction fees.

Comments


GB_CC_May_Digital Asset Trading_Whiteout
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • telegram logo

GlobalBlock EU ApS is a company incorporated and registered in accordance with the applicable laws of the Kingdom of Denmark as virtual asset service provider, with registration number (CVR-number) 45126382. GlobalBlock EU ApS is wholly owned by GlobalBlock Holdings., a company registered in England and Wales with registration number 15929099 . GlobalBlock EU ApS is not a licensed financial services provider and is not supervised as such by the Danish Financial Supervisory Authority. GlobalBlock EU ApS is supervised with respect to anti money laundering by the Danish Financial Supervisory Authority within the scope of the Danish Act on Prevention of Money Laundering and Terrorist Financing and other legislation stemming thereof.

.
GlobalBlock Europe, UAB is a company incorporated and registered in accordance with the applicable laws of the Republic of Lithuania as a virtual currency depository wallet operator and virtual currency exchange operator, with registration number 306045642. GlobalBlock Europe, UAB is wholly owned by GlobalBlock Holdings Ltd., a company registered in England and Wales with registration number 15929099,  GlobalBlock Europe, UAB is not a licensed financial services provider and is not supervised by the Bank of Lithuania. GlobalBlock Europe, UAB is supervised by the Financial Crime Investigation Service under the Ministry of Interior of the Republic of Lithuania within the scope of the Law on Prevention of Money Laundering and Terrorist Financing of the Republic of Lithuania and other legislation stemming thereof.
 
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to the capital investment. The information in this website is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of GlobalBlock Europe, UAB based on the legal requirements in your country of residence. The information in this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.


 Client fiat is held with GlobalBlock in accounts with BCB Limited,and does not meet the definition of Electronic Money (e-money). Client fiat and cryptocurrency are not “safeguarded” nor covered by any compensation scheme. Clients could potentially lose their cryptocurrency or fiat if something were to happen to GlobalBlock or, BCB.

Cryptoasset Notice

Cryptoasset services are provided by GlobalBlock Europe, UAB (“GlobalBlock”).   Cryptoassets are not regulated in any jurisdiction and the value of your assets can increase or decrease. You should note that your cryptoasset profits may be subject to Capital Gains Tax.

The service you obtain through the website or the app in the UK, contains cryptoasrvices not regulated by the Financial Conduct Authority. Please be aware that:

  • You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to cryptoasset services.

  • Your cryptoasset account is not protected by the Financial Services Compensation Scheme.

  • Cryptoassets may experience frequent price volatility resulting in a high degree of risk.

bottom of page