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Cosmos Atom is building the tools to connect a multiverse of blockchain projects together. Launched in April 2019, the $590 million network places interoperability at the core of its project, a blockchain that will be able to translate data from one chain to another, in any programming language and across all consensus algorithms.

Jae Kwon aBasics

  • Created by Tendermint.
  • A network of distributed ledgers “Building a Network of Blockchains”
  • Based in:
  • Started in 2016.
  • Launched 4-2019.
  • Mainnet release:
  • From Crypto Briefing (7-6-2020): "Cosmos is a far-reaching project that seeks to add a communication layer between various blockchains. Although it’s primary focus is interoperability, it also enjoys robust smart contract functionality."
  • From the CoinDesk 50:

"Cosmos is building the tools to connect a multiverse of blockchain projects together. Launched in April 2019, the $590 million network places interoperability at the core of its project, a blockchain that will be able to translate data from one chain to another, in any programming language and across all consensus algorithms. “The premise for Cosmos is that we are the least-maximalist-possible project,” All in Bits, Inc. core developer Sunny Aggarwal said. “We just want to connect everything together.” While concord is Cosmos’ aim, the project has been rife with internal fragmentation. All in Bits director Zaki Manian left the project and criticized its CEO Jae Kwon for focusing on a side project, while the company itself has split in two. Despite this, Cosmos has attracted the participation of about 100 validators on its proof-of-stake network and is used by more than 80 companies and projects including Binance and the Thailand government's National ID program."

History
  • From their blog (16-6-2021):

"What began as Jae Kwon and Ethan Buchman’s creation of what is now the Tendermint consensus algorithm has evolved into a thriving community that grew from the Fundraiser in 2017, to the current multi-entity virtual organization that powers hundreds of innovative blockchain apps and services today."

Audits & Exploits

  • Bug bounty program can be found [insert here]. None according to Blockchain Security DB (29-6-2020), which does show 1 audit(4-2017)
  • IBC has gone through 'an intensive internal code audit conducted jointly with Informal Systems' (16-12-2020).

Bugs/Exploits

  • From Blockthreat (2-11-2021)

"Cosmos patched a critical vulnerability which may have resulted in chain halting. Node operators are advised to update to the latest version."

  • Cosmos Hub developers released Gaia v4.2.0 on Mar. 25, 2021. This release a critical security vulnerability found in the Gaia v4.1 release line. The vulnerability doesn't put user funds at risk; however, it can result in a chain halt.

Hard Fork

  • On 28th May 2019 "a critical security vulnerability in the CosmosSDK was reported to the Tendermint team through security@tendermint.com. In response to this issue, we are currently coordinating a hard fork to upgrade the Cosmos mainnet, and we are reaching out to validators to ensure that they are available to respond during the network transition at block height 482100.”
Governance
  • The “percentage of voting rights” retained by the “top 10 block producers (BPs)” on Cosmos stands at 57.3% (as of 13-4-2019). And the top 20 validators own more than 70% of the voting power (27-4-2019)
  • From this piece (27-4-2019):

'The Cosmos Network has no fixed rules of membership — anyone can build a hub or a zone. Hubs are themselves sovereign blockchains built with the intention of connecting a bunch of other blockchains. Two examples are the Cosmos Hub, which was recently launched by the Tendermint team, and the Iris Hub, a Hub that plans to connect blockchains which primarily operate in China and other parts of Asia. This hub-and-zone model makes inter-chain communication more efficient, because instead of connecting to every other blockchain, each blockchain only needs to connect to a hub."

"there is no single “governance” process for the Cosmos Network. Each hub and zone has its own governance processes and there is no central set of rules that apply to the entire network of blockchains. When people talk about “governance of Cosmos”, they are referring to is the governance of the Cosmos Hub, the blockchain launched by the Tendermint team. The Cosmos Hub has a set of rules that lets anyone send a text proposal, and Atom holders are allowed to vote on it, where their votes are weighted by the number of Atoms they own. This is an example of what a proposal looks like. To learn more about the intricacies of the governance process, this blog post by Chorus One is a good primer on the governance of the Cosmos Hub."

  • From this blog (27-4-2019):

"Validators are required to vote on all proposals. Failing to do so in a timely manner will invoke a temporary suspension of the validator identity for one week. The on-chain governance system of Cosmos can be divided into three phases:

Phase 1: Proposing

Anyone could submit proposals to the voting system. To enter the voting phase, the proposal needs to attract a minimum deposit from the proposer or other atom token holders. Phase 1 lasts maximally two weeks.

Phase 2: Voting

Atom token holders gain voting power by staking tokens in the system. The voting power is proportional to the number of staked tokens.

Voters have five options: Yea, Yea with Force, Nay, Nay with Force and Abstain.

Token delegators could cast their own votes. Otherwise, they automatically inherit the delegatee’s vote (a.k.a. liquid democracy). Phase 2 lasts two weeks.

Phase 3: Tallying

A proposal is considered passed if and only if the following two criteria are both satisfied:

  • More than half of the voting tokens have voted Yea and Yea with Force
  • Less than one third of the voting tokens have voted Nay with Force

The deposit staked in the proposal will be confiscated to the reserve pool if the majority of voters consider it as a spamming proposal. Otherwise, it will be returned to the original owners. Successful proposals will be implemented by validators."

Vote Delegation/Buying?

  • From this report by Chorus One (6-2020):

"In protocols where validators set commission rates, validators may deploy a strategy to gather voting rights through offering validation services for free (as demonstrated by the Sikka validator on the Cosmos Hub)."

This can be seen as delegation of votes, or as a form of vote buying.

Community Tax Pool
  • Seem to be funded by their self funding mechanism.
  • On-chain gov has been added (18-12-2020). Before, validators could only signal, but since this upgrade they can also vote on it and spend the treasury.
  • From Our Network #15 (3-4-2020):

"The Cosmos Hub community tax pool had been slowly accumulating ATOMs since the launch of the mainnet to having over 340 thousand ATOMs. At the end of January 2020, the very first community spend vote was passed: Prop 23 (source)

Prop 23 stated that it would pay 5250 ATOMs to instantiate a Cosmos Governance Working Group. It passed with ~91% Yes in which 63% of the voters were validators while the other 37% of the voters were non-validating ATOM holders who overrode their validators' vote.

In Cosmos, there is a semi-liquid democracy whereby votes are by default cast by validators and individuals with voting power inherit the votes of the validators they're staked with. However, if individuals choose to cast their own votes, they can override their validators' votes, which is what we have seen happen with this proposal. Because of this governance feature, Cosmos governance differentiates itself from representative democracies as seen in DPOS protocols like EOS."

Cosmos Community Contributor Grants
  • From their own blog (24-2-2020):

"This is a retroactive grant awarded to people who have done exceptional work throughout the process of bootstrapping the Cosmos community since 2019 and—for some—even earlier. While this blog post outlines recipients of a “grant”, know that there was no explicit “grant program” that was in place for applications to be processed. These Community Contributors neither asked for funds nor applied for any such grants. They were simply chosen because they each took the initiative to build their respective communities out of passion for the project. All we did was take note."

Chosen by who? It seems by Tendermint itself.

"As of this past weekend, on February 23 2020, all of the recipients have been onboarded as vendors to All in Bits Inc (dba Tendermint Inc), where each vendor received between $1000-$3000 USD in Q1. With that, ambassadors are now able to kick off and get reimbursed for future meetups in regions all over the world for the next 12 months. In total, there were 27 Community Contributors who we recognize as stellar stewards of the network."

Token

Launch

Token allocation

Utility

  • Has Atoms, which are used to pay the gas fee. You can stake ATOM in return for fees and staking rewards.

"Users pay gas fee in “atom” (the native token of Cosmos). 2% of the gas fee flows to a reserve pool. The fund accumulated in the pool is saved for system upgrades and is determined by the Cosmos governance system."

This could be looked at as a self funding mechanism.

"The rest of the gas fee, together with newly minted atom tokens in each block, is distributed to validators in proportion to the percentage of atom tokens they stake in the system. The more atom tokens staked, the higher reward received. Validators run full nodes and secure the Cosmos network by collecting, assembling and broadcasting transactions according to the Tendermint consensus protocol.

Cosmos sets atom token inflation rate between 7–20%. High inflation rate, i.e. high block rewards, dilutes the wealth of the atom token holders who do not stake their tokens and thus incentivizes them to stake their tokens in the system. The inflation rate is automatically adjusted so that the percentage of staked token attains the target of 66.7%. Specifically, when the staking ratio is lower than the target, the inflation rate is raised so that atom token holders are more encouraged to stake their tokens. Vice versa."

Stablecoin

Tech

  • Whitepaper can be found
  • Code can be viewed
  • Built on: Tendermint
  • Programming language used:

Transaction Details

  • Capacity (TPS):
  • Latency:

How it works

  • Uses a Bonded Proof-of-Stake protocol (BPoS).

"In Bonded Proof-of-Stake protocols (BPoS) such as Cosmos or IRISnet, both the validator and its delegators are directly punished.” As noted in Bakerz blog, slashing can occur in cases where there’s a “liveness fault” detected on Cosmos or IRISnet. This occurs when the “validator node does not participate in the network consensus for a long time and misses several blocks.”

  • “In some protocols,” Bakerz noted, the “validator can also be jailed, a process prohibiting [them] from re-entering the networks for a certain period of time.” Meanwhile, in BPoS) protocols such as Cosmos and IRISnet, the “delegators are also at risk of punishment,” so POS Bakerz recommended that users “carefully choose [their] validator.”

Upgrades

  • From State of Stake (23-11-2021):

"The Cosmos Hub Vega upgrade was successfully executed. The upgrade contains several new features, including authz and feegrant modules, packet-forward-middleware and IBC as a standalone module."

  • From Paradigm (11-11-2021):

"Full details of the Vega upgrade can be found here, but essentially, the upgrade includes various versioning updates to ensure the security of the core components that the Cosmos Hub relies on, like Cosmos SDK, Tendermint Core, and IBC. The updates will also serve to avoid consensus errors, and improve efficiency through features like fee and voting delegation. The Vega upgrade is essential to enhance the performance of the Cosmos Hub and ensure that future upgrades occur seamlessly."

  • Stargate has been launched (24-2-2021):

"Cosmos’s Inter-Blockchain Communication (IBC) protocol, released last Thursday as part of the network’s so-called Stargate upgrade, enables token and data transfer across Cosmos-based blockchains. With the launch, Cosmos goal of creating a universe of interconnected blockchains can now become a reality. Over $6B in value, of which $2.8B comes from the Terra blockchain, can now move freely across chains built with the Cosmos SDK, according to Tendermint, core contributor to the Cosmos Network."

Timeline

October 2021
Atom raises a $21,000,000 initial Coin Offering from Do Kwon, Ethereal Ventures, Figment, Nascent, Paradigm and Robot Ventures.

Funding rounds

Patents

Further reading

Title
Author
Link
Type
Date

Cosmos - Рейтинг ATOM, Описание, Обзор Cosmos, включает рыночную капитализацию и текущую цену на 21 февраля 2022 - Forex-Ratings.ru

Web

Cosmos курса Прогноз на 2022 год | ATOM криптовалюта Прогноз до $40.72

Web

Биткоин по $400 тысяч: возможно ли это в 2022 году - Газета.Ru

Web

January 20, 2022

Биткойн-американские горки и волатильность криптовалют на фоне войны в Украине: итоги этой недели - Coinphony [RU]

Web

March 4, 2022

Криптовалюта Cosmos [ ATOM ] | Bitok.blog

Web

Documentaries, videos and podcasts

Title
Date
Link

COSMOS (ATOM): WHY YOU SHOULD INVEST🚀

November 14, 2021

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