Why many new projects are joining the Cosmos ecosystem

It’s critical that these blockchains can communicate with one another as new cryptocurrency and decentralized finance projects emerge across various platforms. Fortunately, this is made possible by the Cosmos Network and the ATOM token. Developers can easily create and deploy unique interoperable blockchains. In this article, we’re going to explore why many new projects are joining the Cosmos ecosystem.

1. What is Cosmos Ecosystem?

The Cosmos ecosystem is a decentralized network that connects various blockchains as part of a grand plan to power a “Internet of blockchains.” Cosmos can facilitate seamless interaction and information exchange between chains in its ecosystem by utilizing a novel technology known as the Inter-Blockchain Communication (IBC) protocol. At the same time, Cosmos provides tools that can significantly streamline and accelerate the development of purpose-built blockchains as part of an effort to reimagine what it means to build blockchain applications.

Finally, Cosmos aims to overcome the limitations of today’s blockchain technology and usher in a new era of increased scalability, usability, and interoperability in the blockchain space. Here’s how it intends to do so.

2. Why choose the Cosmos Blockchain Ecosystem?

Scalability

The Cosmos blockchain ecosystem can process thousands of transactions per second using the Tendermint consensus mechanism. This outnumbers PayPal‘s meager 193 transactions per second. Cosmos has expanded its network while increasing available computational power by utilizing horizontal and vertical scalability solutions. Cosmos Network was designed to be scalable. This simplifies the deployment and sharing of blockchain applications by developers. This is also why Cosmos Network has been dubbed the “internet of blockchains.”

Interoperability

Developers can work with chains outside the Cosmos ecosystem, which has a large and diverse blockchain ecosystem. The Cosmos Network’s interoperability also has some additional advantages. Consider the scenario in which you are a developer who has just published a new token on your blockchain. Individual developers may frequently only have a small amount of liquidity on their chain.

Developers can quickly move their asset or token to a blockchain with high liquidity if such blockchains exist within the Cosmos network. This is done by locking up the asset on your chain and sending a confirmation “packet” in IBC format to the Cosmos Hub. Once the asset has been verified, fake versions of it will show up in the Cosmos Hub, where users can buy, sell, and transfer the asset to another blockchain if they so choose. This is a straightforward method for naturally increasing. 

Developer-friendly

If you still need to decide about using Cosmos for your upcoming project, think about this. If the application was created on Ethereum, it might take some time to process if you are a developer and have a fresh idea for a feature to be used on a platform. This is because developing on another blockchain has limitations.

If an application includes a new protocol, a new EIP (Ethereum Improvement Proposal) must be proposed and approved by the Ethereum community before it can be processed through the EVM (Ethereum Virtual Machine).

Conclusion

Cosmos has already built a thriving ecosystem centered on the Cosmos Hub and powered by its native ATOM token. Users can invest in the Cosmos Hub and receive ATOM tokens in exchange. The Cosmos ecosystem already houses 265 apps and more than $65 billion in digital assets.

Cosmos intends to expand its ecosystem with interconnected chains and apps until it achieves an Internet of blockchains. It remains to be seen whether this audacious vision will be realized. 

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