Cosmos is a decentralized network comprising various parallel blockchains. The primary blockchain is known as Cosmos Hub, and it serves as the network’s hub and keeps track of all transactions. The “Zones”- a group of additional blockchains that make up Cosmos are all linked to the primary blockchain Hub.
The native cryptocurrency of the Cosmos network is ATOM. On the Cosmos blockchain, it is utilized for a number of crucial operations, the most crucial of which is the execution of smart contracts and the completion of transactions.
The primary goal of Cosmos is to address the scalability problems that plague the more established and powerful blockchains, such as the Ethereum network.
The Ethereum blockchain’s main issues are its high gas fees and limited transaction volume (20 transactions per second, for example, compared to PayPal’s more than 190 transactions per second).
On Cosmos Hub, DeFi apps can be created and deployed just like any other blockchain. In addition, Cosmos Hub may communicate with any other blockchain that implements the same protocol, which sets it apart from other blockchains and makes it incredibly special.
The best defi projects based on Cosmos are listed in this guide, but first, what is Cosmos Hub?
Cosmos Hub – The Primary Blockchain For Cosmos
The first of tens of thousands of different zones was the Cosmos Hub. In a sense, it serves as the hub for all zones. The native coin chosen for the Cosmos Hub is ATOM, which the majority of people believe to be the key token for capturing the value of the network effect of Cosmos.
You can operate a validator node and protect the Cosmos Hub using ATOM. You may help with the administration and security of the Cosmos Hub. There are currently 149 validators available from which you can assign your ATOM if you don’t want to manage your own validator node.
On top of the Cosmos Hub, the first apps are already available. In the Cosmos ecosystem, the Gravity DEX, for instance, strives to be the most secure cross-chain DEX protocol. You may instantly access all coins from IBC connected chains by using the Gravidity DEX.
List of Defi Projects Built on Cosmos
Being the blockchain that would draw all other blockchains into its own interoperability platform, Cosmos itself is a rather ambitious project. As a result, several blockchains and initiatives were created using Cosmos; in this post, we’ll focus on the best ones.
One of the blockchains, or so-called “zones,” connected to the Cosmos Hub is Osmosis. It makes use of a protected Proof of Stake architecture and provides many of the same expert staking services that protect the Cosmos chain. The name of its native cryptocurrency is OSMO.
Owners of OSMO tokens may assign their tokens to these expert stakers in order to protect the network from potentially harmful and malicious activity.
Osmosis is a peer-to-peer decentralized blockchain that enables tokens with inter-blockchain communication (IBC) to be traded. Cryptocurrency owners can utilize it to generate liquidity.
Akash Network is a different project that uses the Cosmos blockchains. Akash’s major goal is to assist Web3 developers in launching various decentralized apps (dApps) with the least amount of setup, configuration, and server management.
The project provides the first decentralized open-source cloud, providing permissionless cloud computing resources for developers to create dApps. It is frequently referred to as Airbnb for Cloud Computing.
When discussing Akash Network, it’s important to note that it offers some of the most affordable dApp deployment solutions. I discovered that the costs are roughly one-third of these when compared to some other centralized choices, including Amazon web service.
Sentinel – DVPN
Decentralized VPN applications are supported by Sentinel, a decentralized peer-to-peer bandwidth marketplace. It is constructed using the Cosmos SDK, like all other Cosmos protocols.
Because it cannot be hacked by a central entity, a decentralized VPN elevates privacy characteristics to a new level. Because it runs independently from a central server, it cannot be stopped. Because of this, it is more durable than a centralized VPN.
Dan Edlebeck, a co-founder of Exidio and a contributor to the creation of Sentinel, provided the following explanation:
Sentinel is the first project that focuses on providing privacy to any blockchain or dapp at the network level. These blockchains or programs will be able to offer their customers privacy and censorship resistance after they have been incorporated. The Sentinel ecosystem’s main goal is to enable reliable, trustworthy, and widespread internet access.
You are able to sell bandwidth using Sentinel Network. You will be compensated in $SENT, the Sentinel zone’s native coin, for doing so.
Persistence XPRT is an ecosystem of DeFi and NFT-focused crypto-native assets. The initiative is extremely well-structured technically and offers the infrastructure needed to properly combine DeFi and traditional finance in a number of areas.
By outlining its procedure, let’s make Persistence simple to understand:
- Tokenization of real-world assets like bills using NFTs
- Trading stablecoins vs tokenized assets (now known as NFTs)
- Utilization of these NFTs for stablecoin borrowing (loans)
- loans pooled together to produce stable income
It is clear that Persistence’s major objective is to ensure that new cash flows into the cryptocurrency sector.
A proof-of-stake (POS) blockchain called Regen was created on the Cosmos ecosystem. It is employed for the verification of assertions, agreements, and ecological state-related data.
Multiple users can communicate and conduct transactions with one another using Regen Ledger, creating a public ecological accounting system. It is a worldwide marketplace and platform mostly utilized for data, services, and assets related to the earth’s environment.
In other words, Regen develops a top-notch system for tracking, documenting, and confirming the global environmental situation.
Another system that utilizes the Cosmos network is Juno. It is a platform for interoperable smart contracts that is open source. In accordance with the requirements of such contracts, Juno automatically monitors, records, and executes the processes and actions.
Or to put it another way, Juno is just a collection of smart contracts. The platform’s major goal is to keep traffic off the hub and maintain the hub’s neutrality.
As you might have guessed, Juno’s primary objective is to develop into an inter-chain smart contracts platform, which means that any smart contract feature developed elsewhere can be readily reproduced (and modified) within the Cosmos ecosystem and used from one chain to the next.
The Cosmos space is expanding quickly. There was not a single running app on Cosmos two years ago. But things now appear differently.
The fact that Cosmos blockchain is a very distinctive system is one feature that will make you believe it is the real deal. As with many other blockchains, Cosmos is attempting to outperform the Ethereum network, but it appears that it is the only one doing it in an original manner by acting as a decentralized network of several parallel blockchains.