Cosmos is the ever-expanding ecosystem of interconnected apps and services, which focuses on providing a decentralized future. To understand the Cosmos network you have to understand, “Inter-Blockchain Communication protocol.”
Every blockchain like an individual nation is sovereign. Each blockchain has its set of assets. Just like you trade and transfer useful assets between nations in import and export, it becomes necessary to freely exchange assets across sovereign decentralized blockchains.
The goal of “Inter-Blockchain Communication protocol” as the name implies is to help one blockchain communicate with another blockchain. So, how does communication take place between blockchains? Transfer of assets from one blockchain to another.
“Swapping Digital Assets Across the Interchain”
The “Cosmos Hub – the blockchain” is the economic center of the Interchain cosmos. There is a marketplace, router, security provider, and custodian.
Market place is where you can swap “digital assets” between inter-chains. You can do this for very low fees and the transaction confirmation is instant.
The “Cosmos Hub” is located in the crossroads of interchain and it is prescribed to be the best place to hold digital assets and also to manage accounts across different chains. Perhaps, like a dashboard.
The router connects chains like Ethereum and Bitcoin – connecting chains by establishing and operating decentralized bridges between compatible chains.
“Thus, Cosmos Blockchain is focused on becoming the best place to hold digital assets and to manage them across many chains.”
Imagine a postal delivery services where all the letters that need to get delivered to different locations are stationed in a hub to be further segregated and transferred on to different locations. So, a Cosmos Hub typically works like that.
Those who stake value in the Cosmos Network are contributing to the infrastructure need to facilitate these services to those who want to avail them. And, those who stake value are in turn provided with rewards. Those who help secure the Cosmos Hub earn rewards. They do the staking by investing their value and buying ATOM and staking ATOM in the case of the Cosmos HUB.
When the staking transaction is complete, rewards will start to be generated immediately. At any time, stakers can send a transaction to claim their accumulated rewards, using a wallet.
If you stake 1,000 ATOM you get 10.28% commission, which varies between validators
Those who stake secure (protect) the chain, earn rewards, and eventually vote for the future. Those who stake ATOM are allowed to vote on the governance decisions of the Cosmos Network.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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