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A Brief History of Cosmos
More than 10 years have passed since the creation of the first Bitcoin blockchain. During this time, the community has always faced two main problems - compatibility and scalability. New solutions appear periodically, but not all of them stand the test of time.
In 2014, the American programmer and entrepreneur Jae Kwon created the Cosmos network, which includes the main blockchain based on the Proof of Stake protocol and user blockchains.
The main blockchain of the Cosmos network, through which assets and data are transferred, as well as the overall security of the network, is called the Cosmos Hub. The processes are carried out through the Cosmos consensus mechanism - Tendermint. Each new blockchain is tied to the Cosmos Hub, which allows you to later exchange data with other networks, applications and validators.
ATOM is the internal currency of the Cosmos network. In addition to paying the network fee for sending transactions, the coin is used to participate in staking and block validation. You can also pay the network commission in native blockchain tokens launched in the Cosmos ecosystem.
Features of Cosmos
- The main feature of the network is the Cross-chain solution, which allows you to connect blockchains in one ecosystem and interact with them.
- The development of the ecosystem is amazingly fast. More than 250 projects have already been created on the basis of Cosmos. As the developers predict, their number will increase. The list already includes such well-known projects as Terra and BNB.
- High scalability. The Tendermint protocol provides hundreds of thousands of transactions per second.
Disadvantages of Cosmos
- Serious competition from other projects involved in the solution of scalability and interoperability, which have every chance of being successful in the future.
- Only investors with the most ATOM tokens can be validators. Because of this, in order to keep the place of the validator, the investor needs to constantly increase the volume of his coins. Subsequently, this may lead to the fact that all the largest amounts will be concentrated in the wallets of a limited number of validators.