Cosmos: The Blockchain Ecosystem Connecting Chains Together

Overview of Cosmos’s Six-Layer Architecture

Cosmos adopts a layered design, encompassing data layer, network layer, consensus layer, incentive layer, contract layer, and application layer, each responsible for functions such as data storage, node communication, Block validation, reward distribution, smart contract execution, and user interface, ensuring the stable operation of the overall chain.

Layer Seven: Bridges Between Blockchains

To achieve cross-chain collaboration, Cosmos introduces the “Data Transfer Layer” - IBC (Inter-Blockchain Communication Protocol), analogous to TCP/IP in the internet, allowing different Layer 1 public blockchains to communicate securely and efficiently, enabling the free flow of assets and information.

Main Technical Components

1. The Tendermint consensus engine combines Byzantine fault tolerance with PoS to ensure the security of block data and the instant finality of on-chain consensus.
2. Cosmos SDK provides a modular development framework that accelerates the rapid construction of custom chains and applications, reducing the difficulty of development.
3. The IBC protocol facilitates the integration of multi-chain ecosystems, such as the transfer of data and value between Zones and Hub chains, and also supports bridging with non-Cosmos chains.

Cosmos ecosystem operational model

The Cosmos ecosystem is divided into Hub, Zone, and Peg Zone: Hub serves as the central chain responsible for multi-chain interactions, Zone is an independent chain that supports Hub connections, and Peg Zone bridges heterogeneous chains such as Ethereum, achieving a broader cross-chain range.

ATOM Token Economics

ATOM has no maximum supply limit, and holders can participate in staking and governance, with transaction fees also paid in ATOM. Its distribution covers ICO, foundations, teams, and early investors, effectively incentivizing community participation and promoting network security.