Osmosis (OSMO), The Multi-Chain Decentralized Exchange
Cosmos is building a cross-chain ecosystem where blockchains can scale and interoperate with each other.
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Updated November 2026. This was first published on 30 November 2022. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- Cosmos is building a cross-chain ecosystem where blockchains can scale and interoperate with each other, unlike the single-chain strategy adopted by many protocols.
- More than just a product or a blockchain, Cosmos is a complete ecosystem of tools to create interoperable chains.
- The main components are Cosmos Software Development Kit (SDK), Tendermint, Inter-Blockchain Communication Protocol (IBC), and Cosmos Hub.
Cosmos is building a cross-chain ecosystem where blockchains can scale and interoperate with each other, unlike the single-chain strategy adopted by many protocols. More than just a product or a blockchain, Cosmos is a complete ecosystem of tools to create interoperable chains. The main components are Cosmos Software Development Kit (SDK), Tendermint, Inter-Blockchain Communication Protocol (IBC), and Cosmos Hub.
Cosmos SDK:** A developer-friendly framework that makes it easy to write their application-specific blockchain.
Tendermint:** BFT consensus protocol and its software setup called Tendermint Core.
IBC:** Sidechain protocol allowing blockchains to communicate with each other. IBC is still in the development/prototyping phase at this time.
Cosmos Hub:** the name of one of the blockchains connected to the ecosystem, built by the Cosmos team. It records the total number of tokens in each zone. It differs from the Cosmos network, also called Cosmos, which refers to the whole ecosystem.
Main Characteristics #
Cosmos’ vision is to enable developers to easily create blockchains and break down the barriers between them by allowing them to transact with each other. The goal is to create a network of blockchains capable of communicating with each other in a decentralized way.
More importantly, Cosmos solves some of the main problems currently faced in the blockchain industry.
Scalability:** Tendermint is a BFT consensus protocol that can have a block every 1 second and process up to thousands of transactions per second, allowing blockchain applications to scale to millions of users and several distinct chains to interact with each other efficiently owing to IBC. Also, if the spread time suddenly increases, Tendermint can adapt and improve the block time, allowing it to adjust downward and have as low a block time as possible.
Interoperability:** The connection between blockchains/hubs will be achieved through the IBC protocol, a sidechain protocol allowing blockchains to communicate with each other. It is still in the specification/prototyping phase at the moment.
Governance:** Within the Cosmos ecosystem, each blockchain retains its sovereignty and set of rules, making them optimal for various use cases and enabling economic integration of different application-specific blockchains without political debate. Also, Cosmos Hub will be governed by ATOM token holders, who are granted voting rights concerning protocol amendments.
User-friendliness**: Tendermint Core allows developers to focus on application development rather than the complexity of the underlying protocol, saving them hundreds of development hours: developers can quickly develop a specific blockchain for an app. Not only do developers not need to write a consensus or protocol themselves. they can also program with the language of their choice and create public and private blockchains. The modularity of the Cosmos SDK, which allows you to code your blockchain, also will enable you to port any existing blockchain in Golang on top of Cosmos. Ethermint, for example, carries the Ethereum virtual machine and its tools (Truffle, Metamask).
Security**: Tendermint offers instant finality: users can be sure that their transactions are finalized as soon as a block is created. As long as at least two-thirds of the validators are honest, a client can trust any header signed by a known set of validators, forks are not created, and malicious validators can be penalized. Cosmos SDK is based on the BFT Tendermint consensus algorithm.
BPoS (Bonded Proof-of-Stake):** The state of the Cosmos hub, as well as that of your future chain, can be maintained via BPoS, a variant of Proof-of-Stake allowing token holders to earn additional tokens depending on the size of their stake. In return for securing the network, validators and their delegators earn an interest rate. The main advantages of BPoS are energy efficiency, automatic interest payment, and validators not needing to maintain a minimum stake ratio. If you want to know more, we have written an article on PoS variants. With BPoS, it is essential to note that in the event of a security breach or inactivity on the part of the validator, a portion of the validator and delegator stake may be penalized: choose your validator carefully.
Wallets Available #
The web wallet is available at: wallet.cosmostation.io. Also, the Cosmostation application for smartphones is available in the Google Play and AppStore stores. Atomic Wallet or Ledger Nano physical wallet is suitable for storing and staking Cosmos cryptocurrency.
A complete list of compatible wallets is available on the official project website.
Lunie Extension #
You can also use the Lunie browser extension to interact with the Cosmos blockchain. For example, you can create a new address, restore an existing one from a backup code, monitor your accounts, and confirm transactions with Lunie.io.
Add the Lunie extension to your Chrome browser or install it on your mobile device. Click “Create new address” or “Restore from backup,” and you can work with atomic tokens and other cryptocurrencies.
An Extension of Ledger #
The app is required to store and earn ATOM tokens on the Ledger hardware vault.
· Open the Ledger Live app and search for Cosmos cryptocurrency in the account manager.
· Select Cosmos and start the automatic installation process.
· Create an account and top up your wallet balance.
· Activate ATOM coin staking and receive interest on your capital.
Conclusion #
The idea of combining blockchains into a heterogeneous ecosystem is worthy of attention. The venture offers users several unique features, and, in principle, Cosmos (ATOM) can speed up and make the process of trading cryptocurrency cheaper. In this case, trading will no longer be necessary, and not all market participants will appreciate this scenario. Also, several blockchain projects have been launched that support the conversion of digital coins, for example, Stellar Lumens. It should be recognized that the Cosmos blockchain cannot be called decentralized. Its what it does depends on hundreds of validators.
Technology gaps and strong marketing policies can prevent investors from losing interest. And then, the concept of “Blockchain Internet” will be carried over to the next cycle of crypto-evolution. So, if you believe in the project’s future, add ATOM tokens to your investment portfolio, but remember to diversify the risks.
Questions and answers #
What is the main point? #
Cosmos is building a cross-chain ecosystem where blockchains can scale and interoperate with each other, unlike the single-chain strategy adopted by many protocols.
What else did the original piece say? #
More than just a product or a blockchain, Cosmos is a complete ecosystem of tools to create interoperable chains.