What is Cosmos (ATOM)?

The development of blockchain technology is no longer limited to just producing new cryptocurrencies; establishing scalable and sustainable systems where different networks can work together has become one of the primary goals of the sector. Cosmos (ATOM), one of the most innovative projects that stands out in this context, draws attention with its infrastructure that enables communication between blockchains. Setting out with the vision of the “internet of blockchains”, Cosmos is not just a cryptocurrency project, but also offers a wide ecosystem where independent chains can work together. In this article, we will discuss in detail how Cosmos works, the technologies it offers, the role of the ATOM token, and the future potential of the ecosystem.

Definition and Emergence of Cosmos

We will talk about many things about Cosmos, but it is best to start with its definition: What is Cosmos? Cosmos is a revolutionary ecosystem of networks where different blockchains can talk to each other and exchange data and value. In this respect, Cosmos addresses the problem of “blockchains not being able to communicate with each other”, which has long been one of the fundamental problems of the crypto world. This difficulty, which is evaluated under the title of “blockchain interoperability” in the sector, stems from the fact that each blockchain operates in isolation within its own ecosystem. Cosmos was designed to eliminate this isolation.

The project, which was started in 2016 by Jae Kwon and Ethan Buchman, emerged with the aim of establishing a secure, scalable and flexible infrastructure that connects different blockchains. The basis of this vision of Cosmos is Tendermint, the core technology of the system. The answer to the question of what Tendermint is can be summarized as both a consensus algorithm and a network communication protocol. This technology allows developers to build blockchain applications quickly, securely and energy-efficiently. In particular, its structure that can provide certainty in seconds distinguishes Cosmos from other blockchain systems.

Another fundamental building block of Cosmos' technical power is the Cosmos SDK (software development kit). At this point, the question “What is Cosmos SDK?” may resonate in the minds of many investors. To answer, this open source development kit offers a modular infrastructure for developers who want to build customizable blockchains. Thanks to its easy use and flexible structure, developers can integrate application chains that cater to different needs into the Cosmos ecosystem. Thus, custom blockchains can be implemented for a wide variety of use cases, not just financial applications, but also games, social networks, and data management.

One of the most striking aspects of Cosmos is its vision of the “Blockchain Internet”. Just as the internet unites millions of independent computers into a single network, Cosmos aims to do the same for blockchains. This vision is embodied in Cosmos’ multi-chain architecture. Thanks to its multi-chain structure, each blockchain has its own independence while also being able to securely transfer data and value with other chains.

As a result, this technological framework offered by Cosmos represents much more than just a cryptocurrency project. The answers to questions such as what is Cosmos, why is blockchain interoperability important, what is Cosmos SDK, and what is Tendermint reveal the technical integrity and sectoral impact behind this vision. Cosmos offers a comprehensive and sustainable infrastructure that aims to redefine the future of blockchain technology.

Cosmos History: Major Milestones

Cosmos' journey is full of exciting milestones. Let's take a look at this colorful history together.

2017: ICO Excitement and the Birth of the Community

If you are wondering when Cosmos coin was launched, the story begins in 2017. Cosmos managed to raise $16.8 million in just 30 minutes with its ICO (Initial Coin Offering) held in April 2017. This was one of the most successful ICOs of the time and witnessed the birth of the ATOM token. During this process, the team working on the project came together under the name Tendermint Inc. and the Interchain Foundation was established. This Switzerland-based non-profit organization entered the market with the aim of supporting and financing the development of the Cosmos ecosystem. This structure strengthened the decentralized nature of Cosmos and paved the way for the formation of a large developer community.

2019: Cosmos Hub Mainnet Launch

After two years of intensive development, on March 14, 2019, the concrete answer to the question of what Cosmos Hub is emerged: The Cosmos Hub (ATOM) mainnet, the first blockchain of the Cosmos ecosystem, was officially launched. This was the moment when the Cosmos vision began to become a reality. Let's explain what Cosmos Hub is: Cosmos Hub is the decentralized backbone of the Cosmos ecosystem. It is an important network that connects other blockchains, ensuring security and interoperability. The ATOM token is the native cryptocurrency of this network and is used in network governance, ATOM staking transactions, and payment of network fees. This launch created great excitement in the blockchain world because Cosmos was one of the first projects to bring the "blockchain internet" vision to life.

2021: Launch of the IBC Protocol

In February 2021, a revolutionary development took place for the Cosmos ecosystem. The Inter-Blockchain Communication (IBC) protocol was officially launched. However, at this point, it is necessary to elaborate a little more on what the IBC protocol is. IBC is a standard protocol that allows different blockchains to communicate with each other securely and exchange data. This enables transactions such as token transfers, smart contract interactions, and data sharing between different blockchains.

With the implementation of IBC, the transfer of value and information between Cosmos networks has truly become possible. This was a giant step towards the realization of Cosmos's "blockchain internet" vision. This development, also known as the Stargate update, has rapidly grown the Cosmos ecosystem. After this update, the number of blockchains in the Cosmos ecosystem and the interaction between these chains have increased dramatically.

2023–2024: ATOM 2.0 Discussions and Ecosystem Expansion

The Cosmos ecosystem has grown tremendously in recent years. In 2023 and 2024, the ATOM 2.0 proposal was put on the agenda in order to improve the economic model of the ATOM token and accelerate the growth of the ecosystem. During this period, many new Cosmos networks emerged in the Cosmos ecosystem. Projects such as Osmosis, Juno, Akash, Secret Network created their own private blockchains using the Cosmos SDK, and seamless communication was provided between them thanks to IBC.

In addition, bridges were established with major blockchains outside the Cosmos ecosystem, and integration efforts with Ethereum, Binance Smart Chain, and other major networks accelerated. These developments further advanced the vision of blockchain interoperability. DeFi (Decentralized Finance) applications, NFT projects, and DAOs (Decentralized Autonomous Organizations) began to increase rapidly in the Cosmos ecosystem. This increased the value of the ATOM token and its importance within the ecosystem.

In this process, community governance was also strengthened. ATOM holders began to play an active role in decisions that shape the future of the network. The ATOM staking mechanism has become an important tool that supports the security and governance of the network.

Why is Cosmos Valuable?

So why is Cosmos so important in the blockchain world? Here are some of the elements that make Cosmos special:

The Revolution in Connecting Blockchains

Cosmos’ greatest asset is its solution to the blockchain interoperability problem. Let’s think about it… A world where you can’t easily transfer your cryptocurrencies from one blockchain to another… This is exactly the problem that Cosmos solves. Because thanks to IBC, token transfers, smart contract interactions, and data sharing between different blockchains can happen seamlessly. This eliminates the problem of “silos” in the blockchain world and creates a true blockchain internet. For example, you can transfer your tokens from Osmosis to Secret Network and from there to Juno without any centralized intermediaries. This freedom and flexibility is revolutionary in the crypto world.

Cosmos SDK: The Magic Wand of Blockchain Creation

Let’s delve a little deeper into the Cosmos SDK: This development kit makes it incredibly easy to create a new blockchain. Traditionally, building a blockchain from scratch was a complex process that could take years. However, with the Cosmos SDK, this time can be reduced to months or even weeks. Since this SDK has a modular structure, developers can create a customizable blockchain according to their needs. Whether it is for DeFi applications, gaming platforms, or NFT markets, the Cosmos SDK allows you to create a blockchain that suits every need. This convenience increases the speed of innovation incredibly. New projects and applications are constantly emerging in the Cosmos ecosystem, which increases the value and diversity of the ecosystem.

Tendermint: Fast and Secure Consensus

So why is Tendermint, a must-have for the Cosmos ecosystem, so important? Tendermint Core is the consensus algorithm and network communication protocol at the heart of the Cosmos ecosystem. This technology enables blockchain networks to operate quickly, securely, and energy-efficiently. Tendermint uses a version of the Byzantine Fault Tolerance (BFT) consensus algorithm, which ensures that the network remains secure as long as less than one-third of the nodes are malicious. It can also provide finality in seconds, meaning that once a transaction is completed, it cannot be reversed. This combination of speed and security makes the Cosmos ecosystem particularly attractive for financial applications. It can offer much faster transaction times and lower fees than Proof of Work (PoW) blockchains like Ethereum. We have explained the Tendermint architecture in detail in the table below:

IBC: The Key to Interchain Communication

The IBC protocol is one of the most valuable features that Cosmos offers. With IBC, you can transfer tokens from one blockchain to another, make smart contract calls between different chains, and share your data. This allows blockchain ecosystems to move from isolated “islands” to an interoperable “internet.” The great thing about IBC is that each chain can maintain its own autonomy and security model. This means that each blockchain can set its own rules, but still communicate seamlessly with others.

Who is the Founder of Cosmos?

Who are the geniuses behind Cosmos? The answer to the question of who is the founder of Cosmos is actually the story of a team...

Jae Kwon: Creator of Tendermint

To answer the question of who Jae Kwon is: Jae Kwon is the main founder of Cosmos and the creator of the Tendermint consensus algorithm. Kwon, who studied computer science, discovered his interest in blockchain technology in 2013 and started working on Tendermint. Jae Kwon aimed to develop a new consensus mechanism to solve the scalability and energy consumption problems of existing blockchains such as Bitcoin and Ethereum. As a result, Tendermint was born - a fast, secure and energy-efficient consensus algorithm.

Kwon's vision was not to create just a single blockchain, but to create an ecosystem of blockchains that could communicate with each other. This vision ultimately led to the birth of Cosmos. In 2020, Jae Kwon decided to step down from his active role in the Cosmos project and focus on new projects. However, his contributions to Tendermint and Cosmos have left a lasting impact on the blockchain world.

Ethan Buchman and the Interchain Foundation

The other answer to the question of who founded Cosmos is Ethan Buchman. Buchman, along with Jae Kwon, is the co-founder of the Cosmos project and a director of the Interchain Foundation. Ethan Buchman is a computer scientist specializing in cryptography and distributed systems. Buchman played a key role in creating the technical vision for Cosmos, and in particular in the development of the IBC protocol. What is the Interchain Foundation? It is a non-profit organization founded in Switzerland and is responsible for the development and financing of the Cosmos ecosystem. The foundation manages the funds raised in Cosmos’ 2017 ICO and provides grants to various Cosmos projects.

Open Source Community Contribution

Cosmos’ development relies not only on its founders, but also on the contributions of thousands of developers, validators, and community members worldwide. As an open source project, Cosmos is designed for developers from all over the world to contribute. This ensures continuous innovation and improvement. Validators ensure the security and operation of the network through the staking mechanism. Token holders shape the future of the network by participating in governance processes. This broad participation, This makes Cosmos a truly decentralized and community-driven project. This supports its long-term sustainability and success.

The Future of the Cosmos Ecosystem

So what does the future of Cosmos look like? What does the Cosmos network do and what kind of blockchain world awaits us in the future? The Cosmos ecosystem continues to grow every day. Currently, more than 50 blockchains are included in the Cosmos ecosystem using the IBC protocol. This number is constantly increasing as new projects develop.

From DeFi applications to NFT platforms, from gaming blockchains to data storage solutions, various projects are creating their own private blockchains using the Cosmos SDK and Tendermint technologies. This expansion also adds new dimensions to the question of what is ATOM coin. ATOM is not just a cryptocurrency, but a value carrier that is at the center of this growing ecosystem and secures it.

Frequently Asked Questions (FAQ)

Below, you can find some frequently asked questions and answers about Cosmos:

• What is Cosmos, what does it aim to do?: Cosmos enables different blockchains to communicate with each other It is an interoperability network that provides. Its goal is to create a decentralized internet and make blockchains scalable, interoperable and easier to develop.
• What is ATOM coin, what does it do?: ATOM is the native token of Cosmos Hub. It is used in staking transactions for network security, governance votes and payment of transaction fees.
• How does the Cosmos IBC protocol work?: IBC (Inter-Blockchain Communication) allows different blockchains to transfer data and assets in a secure and decentralized manner. Each chain can be connected to each other within the Cosmos network as long as it is IBC compatible.
• What is different about Cosmos from other chains?: Cosmos offers a modular architecture instead of monolithic structures. Each project can establish its own independent chain and communicate with other chains via IBC. This increases both scalability and customizability.
• What does Cosmos Hub and Zone mean?: Cosmos Hub is the first and centralized chain in the Cosmos ecosystem. Zones are independent blockchains that are connected to Cosmos Hub and operate on their own. Each Zone communicates with other Zones via IBC can establish.

For more on the Cosmos network and ATOM token, which enables inter-blockchain communication, follow our JR Kripto Guide series.