Cosmos, as its founding team calls it, aims to create a network of crypto networks linked by open source tools to streamline transactions across crypto networks. It is this focus on individualization and interoperability that distinguishes Cosmos from other projects.
The Cosmos Hub, a proof-proof blockchain, is powered by a combination of open source tools such as the open source blockchain Ethereum. A new, independent blockchain that is created in the cosmos, called "zones," is then connected to the cosmos hub, which records the state of each zone.
How does Cosmos work?
Each node stores information about the current state of the system, such as the number of nodes in the network and the nodes in that system in the current state.
This is the part of the network that allows developers to create blockchains without having to reprogram them from scratch. Tendermint (BFT) is an algorithm used by the computer network and Kosmos software to secure the networks and block the blocks. Cosmos uses a range of open source tools to connect all levels, allowing developers to develop blockchain applications. These applications are connected via a protocol called the Application Blockchain Interface.
Central to Tendermint is ATOM, a proof-of-participation management mechanism (PoS) that keeps the network distributed. The participants (validator nodes) use ATom to control the blockchain and vote on changes, and the voting power is determined by the number of atoms used. To become a validator, your node must be among the 100 nodes of those using ATOM.
Users earn a portion of the block reward, but can also delegate their tokens to other validators. Validators are encouraged to be honest, as users have the option of simply switching to another validator to which they transfer ATOM according to their voting preferences.
Cosmos Hub is the first blockchain to be introduced to the Cosmos network, and it is designed as an independent blockchain for the Cosmos network and the so-called "zone." Cosmos, each zone is able to fulfill its essential functions as a zone on its own.
This includes authenticating accounts and transactions, creating and distributing new tokens and making changes to the blockchain. The mission of Cosmos Hub is to facilitate interoperability between the zones of the network by monitoring their condition. Each zone is connected to CosmosHub by a mechanism that allows information to flow freely and safely between the connected zones. All zones are interoperable with other zones connected via the hub, meaning that both blockchains can exchange data.
The Cosmos team has also developed the Cosmos Software Development Kit (SDK), which allows developers to create blockchains using the Tendermint consensus algorithm. Developers can create plugins to add additional features they want, such as smart contracts, transaction management and more. The SDK minimizes complexity by providing an easy-to-use interface for developing and testing new features and creating custom applications.