The "internet of blockchains." While Ethereum tries to be one chain that does everything, Cosmos lets anyone build their own blockchain and connect them all together. The Cosmos SDK is the most popular framework for building custom blockchains — used by Binance Chain, Cronos, Osmosis, and Terra (yes, that Terra). The ATOM token powers the Cosmos Hub. The technology is everywhere. The token somehow isn't. Cosmos built the tools that power half of crypto and gets almost none of the credit.
Founded
2014
HQ
Zug, Switzerland
Total Raised
$17 million
Founder
Jae Kwon, Ethan Buchman
Status
Active (Decentralized)
Website
cosmos.networkTHE ORIGIN STORY
Jae Kwon and Ethan Buchman realized in 2014 that the "one chain to rule them all" approach wouldn't work. Different applications need different blockchains with different tradeoffs.
But those blockchains need to talk to each other. Cosmos was built around two innovations: Tendermint (a consensus engine that any blockchain can use) and IBC (Inter-Blockchain Communication protocol, which lets different chains transfer data and tokens).
The Cosmos SDK launched as a toolkit for building custom blockchains. It became the most popular blockchain framework in the world.
WHAT THEY ACTUALLY DO
Cosmos is an ecosystem of interconnected blockchains. The Cosmos SDK is the open-source toolkit for building blockchains.
IBC is the communication protocol connecting them. The Cosmos Hub is the flagship chain where ATOM is staked.
Revenue in the ecosystem comes from transaction fees across connected chains. The Interchain Foundation (a Swiss nonprofit) funds development.
THE PRODUCTS
Cosmos SDK — the most popular framework for building custom blockchains. IBC — Inter-Blockchain Communication protocol connecting 50+ chains.
Cosmos Hub — the flagship chain and center of the ecosystem. Tendermint — the consensus engine powering Cosmos chains.
ATOM — the staking and governance token.
HOW THEY GREW
Making the SDK the default toolkit. By making it incredibly easy to build a custom blockchain, Cosmos ensured that dozens of projects chose Cosmos SDK over building from scratch.
Binance Chain, Terra, Cronos, Osmosis, and many others all used the SDK. Each new chain expanded the IBC network, creating a network effect.
THE HARD PART
Value accrual to the ATOM token. Cosmos built incredible technology but the ATOM token doesn't capture value from the broader ecosystem.
Chains built on the SDK can (and do) operate independently without using ATOM. The "Cosmos is undervalued" narrative has persisted for years without resolution.
Also, the Terra/Luna collapse (built on Cosmos SDK) was a massive reputational hit.
MONEY TRAIL
ICO
2017 · Led by Public sale
$17M raised
WHO BACKED THEM
The ICO in 2017 raised $17 million (modest by crypto standards). Paradigm, Polychain Capital, and 1confirmation have supported the ecosystem.
The Interchain Foundation holds a reserve for ongoing development funding.
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