What is Cosmos?

Learn all you need to know about the Cosmos blockchain network

When we talk about Blockchain technology and the cryptocurrencies created with it, we usually do it as if it were a single interconnected world but the truth is that each cryptocurrency is constituted in its own universe separated from the others. On this occasion, we will talk about COSMOS, a project that fosters unity between crypto initiatives.

Disclaimer: All the information provided in this post shouldn’t be considered investment advice but rather educational content. We are not advisors. If you trade, always contact your professional adviser and never invest more than what you are able to lose

What is COSMOS? How does it work?

Cosmos Network can be defined as the internet of blockchains. This project unites all types of blockchains taking advantage of Tendermint and the Inter-Blockchain communication protocol (IBC). Projects linked or integrated into the Cosmos Network can exchange tokens with each other natively.

COSMOS is designed around the concept of standardizing communication between various blockchains that are part of its broader ecosystem with the goal of facilitating interoperability.

It is certainly ambitious. Tendermint is unique in that it functions as a multi-chain framework for other Blockchains, while also using its own consensus: Proof of stake (PoS). 

To finance the creation of Cosmos, an Initial Coin Offering of the ATOM token was launched in 2014. Raising in it a total of 16.8 million dollars until April 2017, when the cryptocurrency is finally launched on the market.

The COSMOS network works to reduce the communication gap established between the blockchains that coexist in the crypto market, for which an “Internet of blockchains” is constituted, made up of a central Hub or Blockchain, which is surrounded by different independent chains known as zones.

Thus, the blockchains connected to each other by Cosmos are not directly intertwined with each other. Rather, they all connect to a Hub, which is responsible for serving as an intermediary for exchanges between the chains. So there is no need for them to trust each other, but rather to do so in the central Hub to which they are connected.


The low-level Tendermint protocol that is divided into two fundamental aspects: a blockchain consensus engine and a generic application interface. To understand a bit of what that means, know that there are three conceptual layers to a blockchain: networking, consensus, and the “application layer.”

This protocol prepares consensus and networking packages so teams can focus on their applications and avoid hundreds of hours of complex code. Tendermint is not a blockchain itself, but an open-source developer tool. It is a customizable foundation for blockchain applications.

Who is behind Cosmos?

The development of Cosmos is supported by the Interchain Foundation, based in Switzerland and this is their first project. Many of the developers working on Cosmos are from the company behind the underlying Tendermint blockchain engine, All in Bits. In particular, Jae Kwon, who initially proposed Tendermint in 2014, is one of the main developers and is a member of the board of the Interchain Foundation.

What does this project mean for the future?

Interoperability with blockchains is considered the next natural step for the industry after scalability. However, projects like Cosmos that are built to scale from launch as interoperable frameworks offer some intriguing insights into what a future outlook might look like.

Determining how Cosmos will play out is extremely challenging, especially considering its reliance on PoS consensus and pending results from its Game of Stakes testnet. The PdS is notoriously difficult to reason with and is predisposed to a subjective interpretation of immutability.

Although decentralization continues to be the object of scepticism among some people, time favours the adoption of crypto and blockchain due to the benefits that these technologies offer, in addition to functioning as a protective framework against government mismanagement and economic crises.


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