Thread by @Crypto8Fi

Cosmos. $Atom.

Those of us in the crypto space for the past year have heard of this.

Do we truly understand it ?

Is there any utility ?

Is it unique ?

Buckle up anon, this will be a deep dive...

/THREAD

In this thread we will discuss the fundamentals behind Cosmos.

Let us draw some comparisons between Ethereum and $Cosmos.

In Ethereum, all apps run on a shared state machine…

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In #Cosmos, many application-specific blockchains pass assets and other messages between one another

If #Ethereum is a mainframe computer, Cosmos is a protocol for networking independent servers.

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The mainframe approach works well while applications remain local to the platform.

There is a limit to the number of applications each of these blockchains can support.

They are not designed to talk to one another.

Congestion hurts Ethereum's Dapps more than anything...

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Apps can’t afford to pay Ethereum’s gas premium. Each new L{1,2} needs awkward “bridges” to communicate with the others.

Cosmos offers a different vision for an interchain future: one built around interoperability as a first principle.

Still with me anon. Wagmi

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Cosmos believes that giving sovereign chains a shared communication standard is a natural step in the evolution of protocol design.

This vision is inclusive, not competitive.

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Let's define Cosmos.

#COSMOS is not itself a blockchain—it is a blueprint for designing application-specific blockchains, called Zones.

Cosmos provides template software to handle networking and consensus code from scratch known as cosmos SDK.

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Years of work on the #SDK has made launching a Zone as easy as deploying a smart contract.

Important to bear in mind, #PolkaDot has a similar substrate framework.

Other projects use this idea of app specific chains.

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Cosmos is truly unique because it achieves practical interoperability without sacrificing a shared security layer.

These features are best explained in contrast to Ethereum’s architecture.

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Let's discuss $eth security

Ethereum’s security model is uniform.

Every application deployed on #Ethereum shares the same security level.

Because all Ethereum applications exist within a shared runtime, they are tightly coupled and interoperable by default.

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Cosmos’s security model, in contrast, is non-uniform.

Each app essentially must choose the level of security sufficient for its purpose and incentivise a rational market of validators to provide that security.

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Within Cosmos,

Each Zone exists in its own runtime, so they are not interoperable by default, and communication requires a shared message-passing protocol.

Lets look further at interoperability…

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Cosmos deals with the non-uniformity of security assumptions across Zones by treating interoperability as an opt-in market process:

Zones, and their users, choose their level of exposure to the security risks of other remote Zones.

A free market in a way...

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Don't get lost here anon,

For the tech geniuses amongst us..

Uncoupled Zones will not even pass assets.

Fully coupled Zones may each be shards of a single consensus process.

This leads us to interchains...

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Interchains can be applied to everything from simple asset transfers, to cross-Zone data availability proofs, to slashing validators on remote Zones (i.e., fully shared security).

Additionally, any blockchain that uses a consensus mechanism with finality...

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can implement IBC and... can join the Cosmos Network.

Everything is a Cosmos Zone, by design.

Pretty awesome, huh?

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Interchains work today.

Standardised applications, cross-Zone asset transfers, have gone live already.

This composability model is already sufficient for most DeFi applications.

To recap, in Cosmos, every application is encouraged to deploy as a sovereign Cosmos Zone.

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#COSMOS treats interoperability as a spectrum and allows every chain on the network to choose how it interacts with the others.

Collectively, these relationships form the Interchain.

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Let's briefly list the advantages of #COSMOS :

-Scalability

-Developer experience

-Defensibility

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Let's briefly list the disadvantages of #COSMOS

-Security

-Synchronous interoperability

-Developer experience

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Security.

Smart contracts on Ethereum can rely on the platform for protection from safety failures like rollbacks or invalid state transitions.

On Cosmos, each chain is responsible for its own security, so applications may fail more often.

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On the other hand,

It is healthier for applications that are unable to pay for their own security to fail quickly.

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Synchronous interoperability.

While Cosmos chains can transfer assets to each other and interact in other asynchronous ways, it is not possible to make synchronous calls from one Cosmos chain to another.

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On the other hand,

Synchronous interaction is still possible within a single Cosmos chain.

Synchronous interaction with all other applications is ultimately impossible to maintain at scale.

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Developer Experience.

Application developers are required to grasp details of blockchain protocol design, like MEV

However, this is probably inevitable. Application developers will be forced to consider these dynamics regardless of whether they deploy to a shared platform.

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A short summary before we move on to the current price metrics.

Glad to see your still with me. :)

Cosmos is the first which allows developers to explore the full trade-off space without giving up simple composability.

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Metrics now…

Cosmos Pricee: $31.48

24h Low / 24h High:$30.61 / $32.64
Trading Volume24h:$716,820,830.41

Market Rank#28

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I will be discussing further on Youtube, where there are good entry and exit points for a short/medium term investment.

I will also look at fundamentals and project a longer term price for #COSMOS.

Subscribe so you don't miss out.

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