Cointime

Cointime

Download App
iOS & Android

Cosmos: Simplifying The Tech Behind The Internet Of Blockchains

Cosmos has been at the front end of innovating cross-chain interoperability infrastructure. It allows for the creation of application specific blockchains, so that each application can scale to its full potential without any limitations. It’s trying to become the internet of blockchains. It’s becoming the hub that connects different blockchains together and allows them to interoperate with each other. But how does it do that? In this article I will simplify the tech behind cosmos that enables it to become the internet of blockchains. So let’s get started.

The HUB

First let’s talk about the hub. The hub is like the center of the cosmos ecosystem. It connects all the blockchains in the cosmos ecosystem together and allows them to interoperate with each other seamlessly. The Cosmos hub is the main hub and it was the first blockchain in the cosmos ecosystem. All the other blockchains are connected to the hub via a protocol known as IBC or inter blockchain communication protocol. Cosmos Hub acts as the central ledger for the whole system. It is responsible for keeping track of all the tokens of different blockchains which are connected to it, so the double spend and other frauds could be prevented.

The ZONES

The independent blockchains in the cosmos ecosystem are called zones. These zones are connected to the main hub via IBC, then the hub connects them to all other zones or isolated blockchains in the ecosystem.

IBC(Inter Blockchain Communication)

IBC protocol is responsible for connecting zones to the main hub so that all blockchains can communicate together and interoperate.

To understand how the IBC works, let me give you an example.

Imagine there are two chains, chain A and chain B.

When you want to send tokens from chain A to chain B, the tokens are locked in chain A and then a message of the proof is sent to chain B that the tokens have been locked on chain A through IBC. Then an equivalent amount of tokens are minted on chain B which are a representation of the tokens locked on Chain A and can be used in the cosmos ecosystem.

Peg-Zones

All the blockchains that are built using the cosmos SDK or have fast-finality can easily be connected with the cosmos hub using IBC protocol but what about blockchains like Ethereum or Bitcoin which have PROBABILISTIC-FINALITY. That’s where the peg-zones come in. Peg-zones are a representation of another blockchain and track the state of that specific blockchain and since they have fast finality like the zones, they can be connected via IBC to the main hub for interoperability.

Let’s understand how peg-zones works.

Let’s say that we want to create a peg-zone of bitcoin, so we can use bitcoin in the cosmos ecosystem. For this to happen the peg-zone for bitcoin will be created that will track Bitcoin’s state. Let’s say we want to send 10 bitcoins from Bitcoin’s blockchain over to cosmos’s ecosystem. For this the bitcoin would be first sent to the Bitcoin address controlled by the peg-zone. Then after finality has been confirmed by the peg-zone after some number of blocks have been mined, then an equal number of Bitcoin tokens would be minted in the peg-zone which will be a representation of the native Bitcoin tokens.

Then these tokens can be sent to other chains in the ecosystem through the hub and can be used for transactions.

Cosmos Hub Architecture

Now let’s talk about the architecture of the cosmos hub. The cosmos hub consists of 3 layers. The first layer is the networking layer. This layer is responsible for connecting all nodes together and helping them all find each other.

The next layer is the consensus layer. This layer is responsible for helping all the nodes reach consensus with each other using the Tendermint BFT, which is cosmos’s consensus algorithm.

The final layer is the application layer called the Tendermint core. This is the layer which makes the hub functional by processing the transaction and updating the state each time a new block is added.

Cosmos SDK

Cosmos SDK is the development kit by which the developers can make applications specific chains. This kit makes it extremely easy for developers to deploy blockchain as they only have to focus on the application layer. The application layer can be made using any language . Once the application layer is made it is connected to Tendermint BFT engine which contains the consensus and networking layer using a protocol known as ABCI or Application Blockchain Interface.

The application specific blockchains built using Cosmos SDK can have their own governance structure and can also have their own consensus mechanism.

If this article was helpful make sure to like and share it.

Don’t forget to follow me on medium and twitter @NEO110x

cosmos
Comments

All Comments

Recommended for you

  • Economic Daily: 'Patience' is Becoming the Most Scarce and Urgent Demand in the Market

    On September 27, Economic Daily published an article stating that patience is not only a friend of time but also the soil for innovation. Technological innovation inherently features high investment, high risk, and long cycles. Who has the capability to support this expedition in scientific innovation? Tian Xuan, Dean of the Guanghua School of Management at Peking University, provides the answer in his book 'Patient Capital: Building a New Ecology of Long-term Investment'—patient capital. The characteristic of patient capital lies in its pursuit of long-term investment horizons and strategic stability, rather than short-term financial returns. As global economic uncertainty rises and China’s economy stands at a critical juncture of transitioning from factor-driven to innovation-driven growth, the concept of 'patience' is becoming the most scarce and urgent demand in the market. At the macro level, patient capital can effectively smooth short-term market fluctuations and enhance overall market confidence and resilience through long-term asset holding and rational decision-making, while creating a stable financial environment for the implementation of medium- to long-term economic and industrial policies by the state. At the micro level, patient capital can cover the entire development cycle of technological innovation, providing a tolerant space for trial and error in technology, and shifting resources from short-term market projects to long-term innovation projects. Furthermore, the participation of patient capital can send positive signals to the outside world, reduce information asymmetry between market investors and upstream and downstream companies, and alleviate financing difficulties for enterprises. Beyond financial support, it can also promote knowledge transfer and market resource integration through its own network, enhancing the success rate of innovation and research and development in invested companies, and driving the development of new productive forces and the upgrading of economic structure. Strengthening patient capital means not only extending the investment horizon but also respecting the laws of technological iteration, trusting in the long-term evolution of industries, and building a consensus on long-term value. Its deep binding with the real economy will become another important force supporting the stable and long-term development of the Chinese economy.

  • Iranian Military: Pursuit of Trump and Netanyahu Will Continue After War

    On September 27, senior spokesman for the Iranian armed forces, Shekarchi, stated that even after the war ends, the Iranian military will continue to pursue U.S. President Trump and Israeli Prime Minister Netanyahu, labeling them as "murderers" who will inevitably face punishment. "Even if the war ends, we will not spare Trump, Netanyahu, and their accomplices. Regardless of whether they remain in power, they must pay the price for their actions," Shekarchi said. He emphasized that Tehran will never allow the U.S. to regain its former status in the emerging world order. The only safe path for U.S. troops is to withdraw from the Middle East, and the faster they leave, the fewer losses they will incur. "Americans can dream of intervening in the Strait of Hormuz. But if they dare to meddle in the Strait of Hormuz, they will receive a hard slap in the face."

  • Iranian Foreign Minister: Opening of Strait of Hormuz Depends on Iran's Conditions Being Met

    On September 27, Iranian Foreign Minister Zarif stated that Iran will not make concessions to the United States on established conditions. The opening of the Strait of Hormuz depends on whether Iran's proposed conditions are met, and any progress regarding the opening of the Strait will depend on the implementation of these conditions. Iran will never compromise on these issues. Zarif mentioned that Iran has been informed of the U.S. initial response to the proposal for reopening the Strait of Hormuz but has not yet received any specific information conveyed by the mediators. Iran is waiting for the mediators to communicate the final position, and will make decisions based on that. U.S. President Trump stated on the 26th that he rejected Iran's proposal to reopen the Strait of Hormuz. (CCTV News)

  • US to Lower Fuel Economy Standards, Fuel Consumption and Emissions May Rise

    On September 27, US officials announced on Saturday that the Department of Transportation will finalize regulations to significantly lower fuel economy standards for cars on Monday, applicable until 2031. This means the US will reverse the policies promoted during the Biden administration that encouraged automakers to produce more electric vehicles. Former President Trump stated that he has approved new fuel economy standards for cars and trucks, claiming that the new regulations will reduce the prices of new vehicles. US Transportation Secretary Duffy remarked, 'American auto workers will celebrate a major victory on Monday.' According to estimates from the Department of Transportation, the new standards will lower the cost of new cars, but fuel consumption and carbon dioxide emissions will increase over the coming decades.

  • U.S. Spot Bitcoin ETF Sees $2.39 Billion Net Inflow in a Week, Highest Since 2026

    On September 26, BeInCrypto reported that the U.S. spot Bitcoin ETF experienced a net inflow of $2.39 billion this week, marking the largest single-week net inflow since 2026. According to SoSoValue data, the week started with an inflow of $998.95 million on September 21, but subsequently declined daily to $134.47 million by Friday, approximately 87% lower than Monday. Nonetheless, funds continued to flow in for the seventh consecutive trading day. The significant inflow on Monday followed a 6.7% surge in Bitcoin, which led to about $262 million in short positions being liquidated within an hour. A global business survey by S&P on September 23 indicated that the U.S. economy is growing at its fastest pace since July 2021, with the 10-year U.S. Treasury yield surpassing 5%, causing Bitcoin to drop below $84,000 within an hour. The total assets of the ETF currently stand at $108.42 billion.

  • Riot Repays Coinbase Loan Early and Terminates $200 Million Bitcoin Collateral Credit Line

    On September 26, according to U.S. SEC filings, Bitcoin mining company Riot Platforms (NASDAQ: RIOT) voluntarily repaid all outstanding loans to Coinbase Credit on September 21 and terminated its $200 million credit line, while also releasing the lender's claim on the collateralized Bitcoin. Riot paid the full principal and accrued interest, incurring no early termination fees or penalties, and Coinbase's subsequent lending commitments were also terminated. The credit line, revised in April 2026, carried a fixed annual interest rate of 6.15% with a maturity date extended to April 20, 2027, and Riot had previously fully drawn the amount. At this rate, the annual interest on the $200 million balance is approximately $12.3 million. As of June 30, Riot had pledged 5,821 Bitcoins as collateral, valued at about $340.7 million, which accounted for approximately 51% of its total holdings of 11,380 Bitcoins at that time; the collateral also included USDC and cash held in Coinbase Custody Trust. This credit line was initially established in April 2025 for $100 million with a variable interest rate; it was doubled to $200 million the following month with a one-time fee of $1 million. Since the window for early termination fees specified in the agreement closed on August 21, no fees were required for the repayment in September. Riot is simultaneously expanding its data center operations, having announced in August a 20-year lease agreement with an unnamed AI developer for 191 megawatts of computing power at its Rockdale facility, which is expected to generate approximately $9.1 billion in initial revenue.

  • Trump: 'Super Intelligence' is a More Fitting Term than 'Artificial Intelligence'

    On September 26, U.S. President Trump stated: 'Super Intelligence' is a more fitting name. This name is more accurate because the term 'Artificial' often implies 'false' or 'not real'; however, it (Artificial Intelligence) is not a false entity, but rather an extremely powerful form of intelligence.

  • US and China Reach Agreement to Cut Tariffs on $30 Billion in Goods

    On September 26, the United States and China reached an agreement to reduce tariffs on $30 billion worth of goods following talks between President Xi Jinping and US President Donald Trump. (Watcher.Guru)

  • BTC Surpasses $84,000

    Market data shows that BTC has surpassed $84,000, currently priced at $84,015.64, with a 24-hour increase of 0.31%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Trump Rejects Iran's Proposal to Reopen the Strait of Hormuz

    On September 26, U.S. President Trump stated that he has rejected Iran's proposal to reopen the Strait of Hormuz. In a media interview, Trump emphasized that the U.S. has complete control over the Strait of Hormuz, through which a significant amount of oil is flowing. Iran seeks to reach an agreement to immediately reopen the Strait, but 'I have rejected their proposal.' (Xinhua News Agency)

Daily Must-Read

Popular Activities

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

April 30 - April 30
Dubai

Popular Tags

Cointime
News
Contents
RSS
Company