Thread by @WarrenFeldman3

With the recent announcement of @dYdX joining the #cosmos, it is clear that much of CT is still confused on the differences between the Cosmos Ecosystem, the @cosmoshub, $ATOM, IBC, and the Cosmos SDK.

🧵: Let us clarify for those who may be new. 1/x

@dYdX @cosmoshub 2/x With its mainnet launch of the Cosmos HUB in early 2019, the @jaekwon and @buchmanster creation started the beginning of what would be known as the internet of blockchains (a “big bang” if you will).

3/x The Cosmos HUB is an individual blockchain that aims to play a vital role in the entire Cosmos ecosystem. The Cosmos Ecosystem (not the HUB) is the summation of all the individual blockchains which just so happens to include the Cosmos HUB. There are around 50 chains atm

4/x All of these chains are built on the Cosmos SDK (software development kit). Think of the SDK as the framework that allows for all Cosmos blockchains to have the same infrastructure. Developers enjoy using the SDK because it will allow them to quickly deploy a chain

5/x The idea of the Cosmos Eco is to develop thousands of application-specific blockchains. Rather than build on top of an L1 with L2s, applications can build their own blockchain. These appchains connect through IBC (Inter-Blockchain Communication) protocol

6/x With many blockchains coming into existence, there will have to be central zones that allow for blockchains to connect. The Cosmos HUB aims to be a router that can facilitate IBC transactions to occur.

7/x An IBC transaction is the sending of an asset from one blockchain to another. Any blockchain that connects to the Cosmos HUB will be able to connect to all other blockchains connected to the Cosmos HUB

8/x With all of the assets that will arise in the ecosystem, it will be important to have 1 base currency that expands all chains. Enter the $ATOM token. This is the asset that is native to the Cosmos HUB. The Cosmos HUB is a PoS blockchain with 175 validators in the active set

9/x By staking ATOM tokens, validators and delegators are helping secure the Cosmos HUB. With many smaller chains arising, it will be hard for each appchain to have a quality validator set. This is where the ATOM token is about to gain increased utility via Interchain Security

10/x With the Lambda Upgrade expected in Q3 2022, these smaller chains will be able to lease security from the Cosmos HUB. This means that any new blockchain can use the 175 Cosmos HUB validator set to provide security for its blockchain rather than find its own validators

11/x By staking the ATOM token on the Cosmos HUB, all delegators will be able to not only earn Cosmos HUB staking rewards in the form of ATOM token (how it is currently), but will additionally earn rewards from the chains they lease the validator set to

12/x TL; DR

The Cosmos Ecosystem: Group of ~50 appchains (including the Cosmos Hub chain)

The Cosmos HUB: 1 Blockchain that connects the other Blockchains

$ATOM Token: The Base Currency of the Cosmos HUB and one of the most popular assets across the entire ecosystem

13/x TL; DR cont.

Cosmos SDK: Infrastructure framework to build an interoperable appchain (building blocks)

IBC: The protocol that allows blockchains to send assets across chains and keep all chains connected rather than siloed

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