Cosmos Threat to Traditional Blockchains

Author: Russian DeFi, Compiler: Block unicorn

** Modular blockchains may render traditional blockchains obsolete. **

Single block chains are really good while they exist, however, they end up with the blockchain trilemma (decentralization, scalability, security) as they try to do everything on each node (consensus , data availability, settlement and execution).

Avoiding this problem with a modular blockchain is done by splitting the many roles of the blockchain into different layers. Thus, blockchains can scale in a way that minimizes tradeoffs.

Ethereum and Cosmos are leading in this modular race, the future of blockchain is modular.

Since the launch of the Ethereum Virtual Machine (EVM), Ethereum has implemented smart contract functions, which has enabled the development of various DApps in DeFi, NFT, games and other fields.

Ethereum is a general-purpose public chain that can support various DApps that compete for network resources. During times of congestion, transaction fees skyrocket, resulting in a poor user experience in terms of cost and latency.

Another problem with Ethereum and other L1 chains is their "Layer 2 (L2)" governance system. This means that in addition to following its own rules, DApps must also follow the rules of the protocol, and it is impossible to change the protocol every time a DApp needs a new feature.

Instead of DApps competing for the resources of a single blockchain, Cosmos proposes that each DApp run on its own independent, parallel and application-optimized blockchain. Since they are independent, each blockchain can be upgraded or modified independently. Cosmos chains can communicate with each other and even under certain conditions with blockchains that use different proof-of-stake/proof-of-work consensus mechanisms.

Introduction to Cosmos

Cosmos is the network known as the "Internet of Blockchains" that allows different blockchains to coexist and interoperate. Normally, blockchains are independent of each other, and while recent technology enables two blockchains to communicate and transfer data through a bridge, Cosmos goes a step further. Cosmos improves interoperability by allowing developers to create initially interoperable blockchains.

These blockchains communicate through the Inter-Blockchain Communications protocol (IBC for short, which is an information transmission protocol between blockchains), of which the Cosmos Hub and its ATOM tokens are one of them.

History of Cosmos

The Cosmos project first came out in 2014, created by Jae Kwon under the Tendermint consensus protocol. Kwon tried unsuccessfully to build a fully interoperable system, so he teamed up with Zarko Milosevic and Ethan Buchman. Ultimately, Kwon resigned from his role in the Cosmos project in 2020.

Here's a brief timeline of the universe, highlighting key events in it:

• In April 2017, Cosmos conducted its first token sale. Raising $7 million in just 29 minutes demonstrated its capabilities.
• In December 2018, the "Game of Stakes" event was released, testing the Cosmos network for the first time.
• On March 13, 2019, the Cosmos Hub was successfully launched, known as the Big Bang of the universe.
• In November 2019, Kava Labs became the first project to use the Cosmos SDK to launch the mainnet. *In February 2020, Cosmos split after its main founder Jae Kwon resigned as CEO.
• In September 2020, Cosmos cooperated with Nym for the first time, introducing anonymous certificates into the Cosmos ecosystem.
• In February 2021, Cosmos released its most ambitious project "Stargate". Stargate is the first public version to use the Inter Blockchain Communication (IBC) protocol. This launch solidifies Cosmos’ position in the blockchain market.

The nonprofit Interchain Foundation (ICF), based in Switzerland, manages the development of Cosmos. Similar to the Ethereum Foundation, the ICF is a coordinating body responsible for bridging the coding process between software development teams.

Vision of Cosmos

Unlike single-layer blockchains, Cosmos envisions a platform for decentralized exchange, storage and protection of value that encourages cooperation, innovation and competition.

Therefore, Cosmos has chosen to build using a modular software stack - the Cosmos SDK and a network of interconnected blockchains. This allows hubs and regions of the Cosmos ecosystem to launch new blockchains with custom execution environments while utilizing IBC for cross-chain communication.

This vision of modularity and autonomous growth has rapidly increased the number of regions in Cosmos. As of this writing, 52 of the 56 zones are active.

**What are Zones and Hubs? **

The zone chain (Zone) is an independent blockchain application created within the Cosmos blockchain network, and the hub (Hub) is the blockchain that connects these zone chains. can also be connected to each other.

The Cosmos Hub is the first hub (blockchain) of the Cosmos network. The Cosmos Hub is a proof-of-stake blockchain that facilitates communication and interoperability between other blockchains, serving as the hub of the network. The Cosmos Hub monitors the partition chains connected to it, which were created using the Cosmos SDK.

Blockchains (partitioned chains) built on the Cosmos network include Binance Chain (now Beacon Chain), Cronos, Osmosis, Neutron, Juno, Celestia, Sei Network, Terra, Injective Protocol, Secret Network, Evmos, Regen Network, Kava , Kujira, ThorChain, BandChain, Archway, etc.

In addition to the blockchain, the Cosmos SDK can also be used to build ecological markets, decentralized exchanges (DEX), wallets, private networks, Dapps, DeFi platforms and other infrastructure projects on the Cosmos network.

**What is unique about the universe? **

Cosmos considers itself the third generation of blockchain technology (after Bitcoin and Ethereum). It enables developers to create blockchains suitable for specific purposes, called application-specific blockchains, that can be connected to each other to exchange data.

The goal of Cosmos is to encourage Web3 developers to create decentralized projects without relying on Ethereum's smart contract design. Instead of building dApps on a base blockchain, Cosmos designed a modular architecture that allows developers to create independent blockchains.

Cosmos developers do not need to rely on the consensus or network layer of a layer 1 blockchain such as Ethereum. When cryptocurrency enthusiasts build on Cosmos, they can create blockchains that meet their design requirements. Unlike creating dApps using smart contracts, Cosmos gives Web3 developers complete freedom to develop blockchains while benefiting from the security of its Tendermint algorithm.

Block unicorn note: Tendermint is a consensus algorithm based on Byzantine fault tolerance, which is used to achieve consistency among different nodes in a distributed network. It is the consensus algorithm used by the Cosmos network to ensure the security and consistency of the blockchain network.

In contrast, Cosmos goes beyond helping Web3 developers create independent blockchains. Many cryptocurrency enthusiasts associate Cosmos with "interoperability," which refers to communication between blockchains.

Connecting different blockchains has been difficult due to different consensus mechanisms and coding standards. While cross-chain bridges can transfer value between blockchain networks, they are vulnerable to hacking.

Cosmos created the IBC protocol to enable different blockchains to communicate with each other. Additionally, the Cosmos team is developing blockchains called "pegg-zones" that can connect to projects outside the Cosmos ecosystem. For example, Cosmos could deploy a pegg blockchain between bitcoin and ethereum.

Block unicorn note: pegg-zone allows assets from external blockchains (such as bitcoin or ethereum) to be anchored to specific tokens in the Cosmos network. Pegg-zone's technical means of connecting different blockchains provides Cosmos with wider interoperability and the ability to integrate external assets.

In addition to these benefits, Cosmos can process 10,000 transactions per second (TPS), has low gas fees, and has a low environmental impact due to its PoS design.

Cosmos network layers

The blockchain can be divided into three conceptual layers from the architecture:

Application layer: The application layer is responsible for updating the state of the blockchain based on the execution of transactions. At this layer, functions for executing smart contracts and handling user interactions are implemented.

Network layer: The network layer is responsible for ensuring that transactions and consensus-related messages are propagated. It handles communication between nodes and ensures transactions are broadcast and confirmed across the network.

Consensus Layer: The consensus layer allows nodes to agree on the current state of the system. At this layer, nodes reach a consensus through a consensus algorithm and decide which transactions are valid and add them to the state of the blockchain.

The division of these levels helps to separate different functions and responsibilities, enabling the Cosmos network to build and expand different blockchains more flexibly, and realize communication and interoperability between them through the IBC protocol. Each layer has specific functions and tasks, which together form the overall architecture of the Cosmos network.

Cosmos Technology

Based on the following components:

Tendermint: A consensus protocol that enables developers to create fast, scalable and secure proof-of-stake blockchains.

Cosmos SDK: Allows developers to build applications on Tendermint-based blockchains. The Cosmos SDK provides a set of tools and frameworks that simplify the development of blockchain applications.

Inter-Blockchain Communication protocol (IBC): A system that allows different blockchains to connect and communicate. Through the IBC protocol, Cosmos realizes the interconnection between blockchains, enabling them to securely exchange data and value.

Together, these technical components form the infrastructure of Cosmos, enabling it to implement fast, scalable and secure blockchain networks, and to facilitate interoperability and communication between different blockchains.

1. Tendermint Byzantine Fault Tolerance and ABCI

Block unicorn note: ABCI stands for "Application Blockchain Interface", which is an important part of the Tendermint architecture. ABCI defines the interface specification between applications and the Tendermint consensus engine. It allows developers to build and extend the Tendermint blockchain with custom application logic without having to modify the Tendermint engine itself.

Through ABCI, developers can separate their applications from the Tendermint consensus engine, making application development more flexible and customizable. ABCI provides a set of standardized interface methods, including functions such as processing transactions, verifying blocks, and querying status, so that applications can interact with the Tendermint network and work with the consensus engine.

Until recently, building a blockchain required developing three layers (network, consensus, and application) from scratch. Ethereum makes the development of decentralized applications more feasible by providing a virtual machine blockchain where anyone can deploy smart contracts with custom logic.

However, it does not simplify the blockchain development process. Go-Ethereum (the Go language implementation of Ethereum), like Bitcoin, is a huge technology stack, which is difficult to fork and customize. This is why Jae Kwon created Tendermint in 2014.

Tendermint BFT is a solution that merges the network and consensus layers of blockchains into a common engine.

• It enables developers to focus on application development without having to worry about complex underlying protocols.
• As a result, Tendermint saves a lot of development time. Tendermint is also the name of the Byzantine Fault Tolerant (BFT) consensus algorithm used by the Tendermint BFT engine.
• The Application Blockchain Interface (ABCI) socket protocol connects the Tendermint BFT engine with applications. The protocol can be wrapped in any programming language, enabling developers to choose the language that best suits their needs.

Here are the features of using Tendermint BFT as an advanced blockchain engine, suitable for public or private blockchains:

*Tendermint BFT only deals with the network and consensus of the blockchain, which means it assists nodes in propagating transactions and helps validators reach consensus on a set of transactions to append to the blockchain.

• The application layer is responsible for defining how the validator set is constructed. Thus, developers can build public and private blockchains on top of the Tendermint BFT engine.
• If the application specifies that validators are selected based on the number of tokens held, the blockchain is classified as PoS (Proof of Stake).
• However, if the application decides that only a set of pre-authorized entities can act as validators, then the blockchain can be classified as a permissioned or private blockchain, where the developer has full control over the rules governing changes to the set of validators for their blockchain .
• High performance: The block generation time of Tendermint BFT can reach about 1 second, and it can process thousands of transactions per second.
• Instant certainty: The Tendermint consensus algorithm has the feature of instant certainty. This means that if more than one-third of the validating nodes are honest (Byzantine fault tolerance), no fork will occur. Users can be confident that their transactions will be finalized once a block is created (this is not the case in proof-of-work blockchains like Bitcoin and Ethereum).
• Security: Tendermint consensus is not only flaw tolerant, but also accountable. A way to determine responsibility if the blockchain forks.

Cosmos is one of several platforms based on the Tendermint consensus engine, others include:

• Ethermint is a scalable and interoperable hybrid blockchain that uses the Cosmos SDK and Tendermint.
• Terra is a delegated proof-of-stake based stablecoin platform used as a blockchain payment solution.
• Regen Network is a decentralized marketplace for environmental assets, data and climate agreements.

2. Cosmos SDK and other application layer frameworks

Tendermint BFT reduces blockchain development time from years to weeks, because creating a secure ABCI application from scratch is challenging, which is why the Cosmos SDK exists.

The Cosmos SDK is a general-purpose framework for building secure blockchain applications on top of Tendermint BFT.

It is built on two basic principles:

Modularity: The goal of the Cosmos SDK is to build a modular ecosystem that allows developers to quickly create application-specific blockchains without writing every function from scratch. Anyone can create a Cosmos SDK module and use an existing module in your blockchain by simply importing it.

For example, the Tendermint team is developing a basic set of modules for the Cosmos Hub. Any developer can use these modules to create their applications. Developers can also create new modules to further customize their applications. As the Cosmos network develops, the ecosystem of SDK modules will also continue to grow, making it easier to develop complex blockchain applications.

Capability-based security: Capabilities limit the scope of malicious or accidental interactions by constraining the security boundaries between modules. This enables developers to better understand the compositionality of modules and limit the scope for malicious or accidental interactions.

The Cosmos SDK also includes a set of useful developer tools for creating command-line interfaces (CLIs, a way of interacting with computer systems through command-line interfaces), REST servers, and various commonly used utility libraries.

The Cosmos SDK (Software Development Kit), like other Cosmos tools, is modular. Developers can build applications on top of Tendermint BFT. However, it can also be used with any other consensus engine that supports the ABCI protocol. Cosmos anticipates the emergence of multiple SDKs over time, each using a different architectural model and compatible with different consensus engines, all within a single ecosystem: the Cosmos Network.

Ethermint

The modular nature of the Cosmos SDK enables developers to port almost any existing blockchain codebase written in Golang onto it, and Ethermint is a project that converts the Ethereum Virtual Machine into an SDK module.

Ethermint is exactly similar to Ethereum, but also has all the advantages of Tendermint BFT. All Ethereum tools (such as Truffle, Metamask, etc.) are compatible with Ethermint, and you can easily migrate your smart contracts.

CometBFT (Comet Byzantine Fault Tolerance)

CometBFT, a fork and successor of Tendermint Core, was released in February this year and will be the official replication engine of the Interchain Stack. CometBFT's long-term goal is to become the preferred replication engine for reliable, secure, large-scale, application-specific blockchains, CometBFT's long-term goal is to play a key role in supporting cross-chain growth.

Block unicorn note: Interchain Stack is a technology stack that promotes interoperability and connectivity between blockchains, aiming to build a unified, cross-chain ecosystem.

More specifically, the goals of CometBFT include:

• Emphasize the needs of users, formulate a clear product strategy, and give priority to the needs of users. This is a strategic decision to ensure that CometBFT remains relevant and valuable at all times.
• Improve quality assurance and correctness assurance by using advanced techniques such as model-driven testing. These techniques enable rigorous specification and testing of implementations, improving quality assurance and correctness assurance.
• The modular design focuses on the appropriate level of abstraction, so that the system can be disassembled on demand for gradual integration in projects that depend on it. Cosmos hopes to encourage the use of CometBFT as a library, reducing forks and fragmentation by adding new interfaces to support an ever-expanding set of use cases.
• Faster feature releases without sacrificing quality. By gradually updating the system architecture, as a reliable platform for change, and by improving project coordination across the Interchain Stack, faster feature releases are achieved.

To sum up, the goal of CometBFT is to become a reliable and well-coordinated blockchain replication engine to support the development of the Interchain Stack by focusing on user needs, improving quality assurance, modular design, and rapid feature releases to continuously improve and develop .

3. IBC - Connected Blockchain

A protocol called Inter-Blockchain Communication (IBC) is used to connect blockchains. IBC leverages the instant finality nature of Tendermint consensus (although it can work with any "fast finality" blockchain engine) to enable heterogeneous chains to transfer value (i.e. tokens) or data between each other.

Basically it can be boiled down to two aspects:

DIFFERENT HIERARCHICAL STRUCTURE: Heterogeneous chains have different hierarchical structures, which means they may differ in their implementation of network, consensus, and application components. To be IBC compliant, a blockchain need only meet a few requirements, the most important of which is that the consensus layer must have fast finality. Proof-of-work chains such as Bitcoin and Ethereum are not included because of their probabilistic finality.

**Sovereignty:**Each blockchain is maintained by a group of validators whose job is to agree on block confirmation. In proof-of-work blockchains, these validators are called miners. Sovereign blockchains have their own set of validators, and in many cases blockchains must be sovereign because validators are ultimately responsible for changing the state. In Ethereum, all applications are run by the same set of validators. Therefore, each application has limited sovereignty.

IBC enables heterogeneous blockchains to exchange tokens and data, meaning blockchains with different applications and validator sets can communicate. For example, it enables public and private chains to exchange tokens. Currently, no other blockchain framework supports this level of interoperability.

How IBC works

For example, suppose an account on chain A wants to send ten tokens to chain B:

Tracking: Both chains are required to keep track of each other's validators.

Locking: When the IBC network initiates a transfer, tokens (such as ATOM) will be locked on the A chain.

Proof Repeater: ATOMs that lock proofs are sent from Chain A to Chain B.

Verification: The proof is verified on the B chain according to the block header of the A chain; if the verification is valid, the ATOM token certificate is created on the B chain.

It is worth noting that the ATOM created on the B chain is not a real ATOM (not native), because the ATOM only exists on the A chain. They represent ATOMs from chain A to chain B, and prove that these ATOMs are frozen on chain A. A similar mechanism will unlock these tokens when ATOMs are returned to their original chain.

The main disadvantage of this approach is that the number of network connections grows quadratically with the number of blockchains. If the network consists of 100 blockchains, each of which has to maintain IBC connections to other blockchains, the number of connections will reach 4950, which quickly becomes unmanageable.

To solve this problem, Cosmos proposes a modular architecture, including two types of blockchains: Hub (central chain) and Zone (partitioned chain), as mentioned earlier.

Connect non-Tendermint chain

Cosmos is not limited to the Tendermint chain, any type of blockchain can be connected to Cosmos. There are two cases: immediate termination chains and probabilistic termination chains:

Fast-finality chains

By modifying the IBC protocol, blockchains using any instant finality consensus algorithm can connect to Cosmos. For example, if Ethereum moves to the Casper Friendly Finality Gadget, IBC can be adapted to be Casper-compatible, creating a direct connection to the Cosmos ecosystem.

Block unicorn note: Casper Friendly Finality Gadget is a consensus algorithm for improving the performance and finality of the blockchain system, and it is expected to connect with Cosmos.

Probabilistic-finality chains

The situation becomes more difficult for blockchains without instant finality, such as proof-of-work chains. For these chains, Cosmos employs a proxy chain called Peg-Zone.

A proxy Peg-Zone blockchain monitors the state of another blockchain. Peg-Zone itself has fast finality, so it is compatible with IBC, and its role is to provide security and finality to the blockchain it is connected to.

**Block unicorn makes it easier for everyone to understand: 1) instant finality chain, 2) probabilistic finality chain, insert a small popular science in the text to explain the characteristics of these two chains. **

**1) Instant finality chain: **The instant finality chain is like an instant confirmation when you send a courier. Once you hand over the package to the courier, they will immediately confirm receipt and provide you with a courier number. You can know immediately that the package has been sent and confirmed.

**2) Probabilistic finality chain: **For example, the Proof-of-Work mechanism of Bitcoin. Under this mechanism, transactions need to go through a certain amount of computing work to be confirmed, and there is a certain probability that a fork will occur. Just like mail delivery takes time and some uncertainty, the transaction confirmation time of the probabilistic finality chain is longer and there are certain risks.

**Simple understanding, instant finality chains can quickly confirm transactions and provide finality guarantees, while probabilistic finality chains require longer confirmation time, and there is a certain probability of forks and security issues. **

**What problems does Cosmos solve? **

1. Sovereignty

Cosmos' free SDK allows developers to build sovereign blockchain applications without ongoing cost. These blockchains can be easily connected to each other without relying on smart contracts to exist on different blockchains, thus avoiding high transaction fees due to network congestion and enabling the development of better scaling functions.

This will drive innovative features in DeFi, NFTs, games, DAOs, social networks, marketplaces, and internet-dependent economies, especially ownership economies where everyone has a stake.

2. Scalability

Cosmos utilizes two types of scalability:

Vertical Scalability: Vertical scalability refers to the scaling method of the blockchain. By abandoning Proof-of-Work and optimizing its components, Tendermint BFT can achieve thousands of transactions per second.

The bottleneck is in the application itself, for example, a virtual machine will impose a lower limit on transaction throughput, while applications that directly embed transaction types and state transition functions (such as standard Cosmos SDK applications) can achieve higher throughput, which means It is also one of the reasons why application-specific blockchains make sense.

Horizontal scalability: Even if the consensus engine and application are highly optimized, the transaction throughput of a single chain will eventually reach an insurmountable limit. Vertical expansion has reached its limit, and a multi-chain architecture will be used as a solution in the future. The core idea is to run multiple chains of the same application in parallel, operated by a standard set of validators, making the blockchain theoretically infinitely scalable.

3. Sustainability

Sustainability The security of the network is guaranteed by the PoS consensus algorithm. Compared with the PoW consensus algorithm, PoS can reduce the carbon footprint by 99%.

ATOM Token Function

ATOM tokens are a vital part of the Cosmos ecosystem. The main purpose of this token is for staking to ensure the security of the PoS consensus mechanism. Cryptocurrency investors must stake the same amount of ATOM tokens as the current top 150 Cosmos validators in order to validate transactions. However, ATOM holders can delegate their tokens to a staking pool for a percentage of cryptocurrency rewards.

ATOM tokens can serve three purposes: as a system to prevent spam, as a staking token, and as a means of voting in governance.

1. As a method of preventing spam, ATOM is used to pay fees. Similar to Ethereum's gas fee, the fee may be proportional to the computational cost required for the transaction. Fees are charged to prevent malicious actors from misusing the blockchain.

2. ATOMs can be staked to obtain tokens as rewards. The number of staked ATOMs determines the economic security of the Cosmos Hub. The greater the number of staked ATOMs, the greater the economic benefits and the higher the cost of attacking the network. Therefore, the greater the number of ATOMs staked, the greater the economic security.

3. Governance: ATOM holders can manage the Cosmos Hub by voting on proposals with their staked ATOMs.

Blockchain on Cosmos

Cosmos' flexible architecture has attracted many Web3 developers. Some of the most notable Cosmos projects include:

• Osmosis: Osmosis was created in 2021 and is currently the largest decentralized exchange (DEX) in the Cosmos ecosystem.
• Cronos Chain: Funded by the centralized crypto exchange Crypto.com, Cronos Chain is an Ethereum-compatible blockchain built on Cosmos. Cronos operates on a PoS algorithm with Crypto.com's CRO token as the primary cryptocurrency.
• Binance Chain: The centralized crypto exchange Binance also used a series of tools from Cosmos to build its Binance Chain. Similar to Cronos Chain, Binance’s blockchain features many DEXs, crypto lending platforms, and NFT marketplaces.
• Thorchain: Thorchain is a decentralized exchange on Cosmos, dedicated to cross-chain exchange, that is, making it possible to safely exchange native tokens and tokens on any blockchain, including Bitcoin, Dogecoin and Ethereum wait. Thorchain operates with a PoS algorithm and uses its native RUNE token to secure the network.

Cosmos Ecosystem

With over $62 billion in total digital assets under management, the Cosmos network hosts more than 274 applications and services. Cosmos has a diverse and rapidly expanding ecosystem. Here are some of the most important Cosmos projects:

Osmosis

It is one of the blockchains connected to the Cosmos Hub. It adopts a secure proof-of-stake system and provides many of the same professional stake verification services as the Cosmos chain. OSMO is the name of its native cryptocurrency.

OSMO token holders can delegate their tokens to these professional stake validators to protect the network from malicious and dangerous behavior. Osmosis is a peer-to-peer decentralized blockchain that cryptocurrency holders can use to generate liquidity and trade IBC-enabled tokens.

Secret Network

is a smart contract platform that focuses on privacy and allows programmable privacy. The Secret Network will provide a privacy hub for the ecosystem, perfect for privacy advocates.

Regen Network

It is building a network of "Proofs for a Healthy Planet" that primarily supports carbon sequestration. With Regen, we can harness the power of the blockchain to make the world a better place. Regen has partnered with Chorus One to develop the first green validator business model.

G-Bridge

Is a cross-chain bridge that enables users to transfer assets between blockchains. G-Bridge is a highly experimental and innovative system managed by a network of users.

Akash Network

Akash Network is another project running on the Cosmos blockchain. Akash's main goal is to help Web3 developers deploy various dApps with minimal configuration, setup, and server management.

Dubbed the "Airbnb of cloud computing," the project offers the first decentralized open-source cloud computing, providing developers with permission-free cloud computing resources to build dApps.

When discussing Akash Network, it is also important to note that it offers one of the most competitive pricing for dApp deployment solutions.

Persistence XPRT

Persistence XPRT is a crypto-native DeFi and NFT asset network. The project is technically organized and provides infrastructure for connecting DeFi and traditional finance in various fields.

Regen Network

The Regen network is a proof-of-stake blockchain built on the Cosmos ecosystem. It is used to validate claims, protocols and data of the state of the environment.

Regen Ledger allows multiple users to interact and trade with each other to form a public ecological accounting system. It is a global marketplace and platform for assets, services and data of the Earth's ecosystem.

Top Cosmos Ecosystem Tokens Ranked by Market Cap:

Cosmos found a major system flaw

As reported last year, 42 blockchains had IBC functionality enabled, including Cosmos Hub, Osmosis, Cronos, and Evmos.

OKX Chain, Luna Classic, and Thorchain are the major blockchains that have previously integrated IBC. Fortunately, their functionality has been disabled or never fully enabled.

The co-founder of Cosmos stated that the issue has been resolved with a patch and will be applied to all current vulnerable blockchains.

Polymer aims to solve this problem by bringing IBC outside of the universe

IBC is a messaging protocol that has found success in the Cosmos ecosystem. However, usage outside of Cosmos is limited.

Polymer is a new protocol that introduces IBC outside of Cosmos. By acting as a message router, it enables any chain or Rollup (aggregation) to send messages to each other using IBC, obtaining functions that were previously limited to Cosmos.

IBC outside the universe

By securing 57 chains and transferring over $160 million in value within Cosmos, IBC has proven its worth. Its success has not been extended to other systems due to strict compatibility requirements with instant finality consensus systems like Tendermint. Probabilistic finality systems, such as Ethereum's proof-of-work, would violate the security promise of IBC.

Active teams working on bringing IBC to Ethereum include:

Electron Labs is working on bringing IBC to Ethereum, but connecting the Tendermint chain and the EVM chain requires a lot of work. Cosmos requires the use of ed25519 signatures for light client verification, and verifying this signature on the EVM consumes a lot of Gas.

To solve this problem, Electron Labs will use proofs of the validity of zero-knowledge signatures and verify this proof on Ethereum to reduce costs. A downside of this approach is the reliance on smart contracts being controlled by one team, which does not scale trust-minimizing for IBC.

zkBridge (Zero Knowledge Chain Bridge) also has a vision to connect Cosmos and Ethereum. Similar to Electron Labs, zkBridge uses a light client and runs an Ethereum smart contract. It uses a relay network where relayers pass block headers to the target chain for verification.

This system allows for parallel proofs, enabling cheaper and faster proof systems, and eliminates the need for a trusted setup where a trusted party generates the private key. Despite relying on a centralized smart contract, zkBridge has fewer trust assumptions due to its proof system.

Polymer is a Cosmos application chain that acts as an IBC hub, allowing communication between chains. Polymer enables connected chains to choose their own verification method, while providing default ZK light client verification by standardizing IBC as a transport component (similar to Electron Labs and zkBridge's implementation), chains connected to Polymer will also have access to the Cosmos SDK And Interchain account (Interchain account refers to a type of account in the Cosmos ecosystem, which is used for cross-chain asset transfer and interaction between different blockchains).

Polymer implements IBC in Solidity and verifies using the Plonky2 proof system for connectivity to Ethereum. Plonky2 is a recursive proof system (first verify and ensure the correctness of the sub-problems, and then combine the sub-problems into the overall problem to prove the correctness of the original problem), which can generate a single proof from a set of proofs. This system further reduces costs of proof generation and verification. Similar to the current zero-knowledge rollup, ZKP (zero-knowledge proof) will be verified on the destination chain.

For example, if Ethereum and Osmosis communicate through Polymer, the following will happen:

Ethereum verifies Polymer's consensus through the ZK Tendermint light client. In contrast, Polymer verifies Ethereum consensus via Ethereum light clients.

Polymer verifies Osmosis's consensus via Tendermint light client (due to the Cosmos chain's native light client), and Osmosis verifies Polymer's consensus via Tendermint light client.

Cosmos Connected and Modular Blockchain

Polymer not only standardizes chain-bridge connections for non-IBC chains, but also improves the way Cosmos chains work.

As the IBC center of Cosmos and other chains, Polymer effectively eliminates redundant connections between chains. Currently, chains are connected by connecting to the Cosmos Hub, but with Polymer, they only need to connect to Polymer once, and they can inherit the interconnection capabilities of all other chains connected to Polymer, which is achieved through multi-hop upgrades.

worry

While IBC has proven impenetrable within the Cosmos ecosystem, it has yet to handle large-scale capital flows. While it may be too early to declare IBC a clear interoperability leader, it is currently the most promising interchain bridging model. However, there are some assumptions about future multi-chain and trustless interconnected chains that will have net positive results for the field as a whole.

Polymer intends to use Plonky2 as its validator, which is a new and unaudited system, and the use of zero-knowledge proofs may require a trade-off between proof cost and latency.

in conclusion

**Cosmos is undoubtedly one of the most compelling and unique projects in Web3, and by fully supporting a multi-chain future, Cosmos has established itself as the clear leader in a unique space. **

The future of Web3 and Cosmos will ultimately be determined by what developers value most. As more and more businesses start to integrate blockchain into their processes, the need for a platform that allows blockchains to communicate with each other becomes critical.

As an interoperable blockchain platform, Cosmos has high growth potential thanks to an experienced team, clearly defined roadmap, potential use cases, and multiple alliances in progress.

However, if developers decide that sovereign and application-based blockchains are the way of the future, Cosmos will be perfectly positioned to capitalize on that sentiment.