Cosmos, which was established in 2016, has emerged as a bold initiative with the goal of creating an interconnected network for open-source blockchains. Its aim is to enable seamless transactions by addressing the challenge of interoperability, which has long been a hurdle in blockchain technology. Cosmos achieves this by building an expanding ecosystem of interconnected applications and services, utilizing hubs, the Tendermint consensus algorithm, and the Inter-Blockchain Communication (IBC) protocol to facilitate secure communication between blockchains.
What sets Cosmos apart from other platforms that use smart contracts for communication is its unique approach. Instead of directly transferring assets between blockchains, Cosmos locks assets within a functional blockchain and issues corresponding pegged tokens on another blockchain. This approach allows developers to create decentralized and sovereign blockchain applications called “zones” without relying on a single chain. Cosmos provides developers with an SDK that simplifies development by offering common blockchain functionalities and user-friendly software development tools.
Cosmos is at the forefront of promoting interoperability among different blockchains, facilitating secure and efficient communication through its distinctive approach, fostering an ecosystem of interconnected applications, and empowering developers to create decentralized blockchain applications.
ATOM, the native cryptocurrency of Cosmos, plays a central role in the Cosmos network. The Cosmos Hub, which acts as the central hub connecting various decentralized blockchain applications or “zones,” relies on ATOM for users to stake it, become validator nodes, and influence blockchain governance through voting power. The system also promotes transparency and performance by allowing users to delegate their tokens to preferred validators.
Cosmos envisions a network that connects isolated blockchains, similar to constructing bridges between blockchain islands to facilitate efficient asset and data exchange. This vision is made possible by the standardized IBC protocol, which breaks down barriers between blockchain silos. Now, let’s explore the top 10 promising projects within the Cosmos ecosystem.
Sei Network is a Layer-1 blockchain designed exclusively for decentralized finance (DeFi). It utilizes the Cosmos SDK and incorporates an order book as the foundational layer of the blockchain, with Tendermint Core serving as its consensus mechanism. Unlike existing DeFi applications that rely on automated market makers, Sei uses on-chain order books to match buy and sell orders at specified prices. This unique feature enables the development of DeFi applications that can tap into Sei’s central limit order book (CLOB) for access to deep liquidity.
Akash Network is a specialized open network that focuses on securing and efficiently exchanging computing resources. It allows individuals to take control of their cloud infrastructure, enabling them to deploy, sell, and purchase cloud resources for running applications. Akash operates as an open Supercloud network, making scalability effortless and providing global access to a wide range of services. Its “reverse auction” system, where customers establish the price they’re willing to pay and providers compete to win their business, often leads to significantly lower costs compared to other cloud systems.
Celestia operates on the Cosmos platform and offers a versatile consensus and data network that simplifies the deployment of blockchains. It leverages the Cosmos SDK and relies on Tendermint as its consensus mechanism. Celestia introduces a robust consensus algorithm to safeguard its operations, allowing developers to focus on their application’s core functions while Celestia manages the consensus and data availability layers. Its distinctive feature is Data Availability Sampling, which enables Celestia to safely increase its block size as more lightweight nodes join the network, ensuring scalability without compromising security.
Sentinel is a state-of-the-art blockchain framework designed to create decentralized VPN applications, known as dVPNs. By harnessing the power of its Cosmos-based blockchain, Sentinel offers a more private, censorship-resistant, and easily accessible online experience. It combines decentralized consensus, open-source networking integrations, and a community-driven network to create cost-effective, scalable, distributed, and decentralized networking solutions.
Archway is a smart contract platform within the Cosmos ecosystem that allows developers to deploy decentralized applications (dApps) while being rewarded for their contributions to the network. Built using the Cosmos SDK and adopting Tendermint as its consensus mechanism, Archway operates as a peer-to-peer marketplace where compute resources are traded. Its unique value capture engine compensates developers based on the number of users they bring to the network, fostering an ecosystem that rewards and encourages contributions.
Stride enhances liquidity for staked tokens within the Cosmos ecosystem. Users can stake tokens from any Cosmos chain and receive stTokens in return. These stTokens earn an auto-compounding staking yield and offer additional opportunities for yield through actions such as lending and providing liquidity. Stride’s reliance on the Cosmos Hub’s Interchain Security system, powered by ATOM tokens, significantly boosts the security of the liquid staking protocol.
SoarChain is a Layer 1 blockchain powered by the Cosmos SDK that aims to reshape the mobility experience. It offers a decentralized, token-driven data and connectivity infrastructure for the world of transportation. SoarChain creates a decentralized ecosystem where vehicles, data providers, and developers can securely interact and exchange value. Its native token, $MTS, and the MOTUS connectivity hardware device incentivize user participation through a cryptographic proof of availability mechanism.
Neutron is an open, permissionless smart contract platform constructed using Tendermint and the Cosmos SDK. It aims to make interchain smart contract deployment seamless by offering cross-chain smart contract applications for the Cosmos network. Neutron forges a strong connection with the Cosmos Hub, tapping into its robust security features to resolve the challenges faced by developers seeking entry into the Cosmos ecosystem.
Stargaze is a decentralized marketplace for non-fungible tokens (NFTs) within the Cosmos ecosystem. As a proof-of-stake Cosmos zone, Stargaze stands out for its flexibility, compatibility, and scalability. It seamlessly connects with other blockchains like Cosmos, Ethereum, and Ethereum Layer 2 networks, allowing users to explore a wide range of NFT possibilities across different blockchain ecosystems.
Persistence aims to revolutionize Liquid Staking within the DeFi ecosystem. It brings innovation to the world of finance through its IBC enabled app chain, making staked assets more flexible and accessible. Persistence’s Core-1 chain hosts a suite of DeFi applications, including pSTAKE Finance, Dexter, and Bamboo, offering users a multi-chain liquid staking experience, an interchain decentralized exchange (DEX), and a borrowing and lending protocol tailored for Liquid Staking.
The Cosmos ecosystem is a thriving hub of innovation in the blockchain and cryptocurrency space. Its focus on interoperability, security, and decentralized applications has led to the development of diverse solutions, from enhancing liquidity to enabling DeFi, NFT marketplaces, and more. The unique architecture of the Cosmos ecosystem and the interoperability enabled by the IBC protocol make it an exciting and promising area of blockchain development. As these projects continue to grow and evolve, they will shape the future of blockchain technology, providing new opportunities and solutions that have the potential to transform various industries and the way we interact with digital assets and dApps.
