Smart Contract functionality is a feature that most blockchain ecosystems find useful.
Typically, smart contracts automate the execution of agreements. That way all participants in the smart contract are certain of its outcome, and no intermediary is needed to execute it.
With that said, does Cosmos support smart contracts? Let’s find out below.
Does Cosmos Have Smart Contracts?
Yes. Cosmos supports smart contracts.
Cosmos provides developers with tools to create smart contracts on any blockchain compatible with the Cosmos ecosystem.
For example, you can build smart contracts for Cosmos blockchains using CosmWasm, Agoric Swingset, and Ethermint.
Ethermint is an Ethereum Virtual Machine implemented as a Cosmos SDK model.
Using Ethermint, you can create and deploy Proof-of-stake blockchains that support Ethereum smart contracts. That way, you can use solidity code on PoS platforms.
CosmWasm is a WASM-based smart contract module that enables developers to build smart contracts using Rust that support multiple blockchains.
Does Atom Have Smart Contracts?
Yes. The Cosmos token ATOM supports smart contracts. As the native token in the Cosmos ecosystem, ATOM helps users execute smart contracts, and helps decentralize and secure the network from 51% attacks.
Is Cosmos Like Ethereum?
Cosmos is not like Ethereum. Here are a few takeaways on the difference between Cosmos and Ethereum:
- Cosmos allows you to create applications and or build entire blockchains on their framework. Ethereum doesn’t offer this opportunity.
- Cosmos isn’t a direct competitor to Ethereum, although several blockchains built using the Cosmos SDK compete with Ethereum.
- The Cosmos network offers cheaper fees compared to Ethereum.
- The Cosmos network has higher transactions per second than Ethereum. However, Ethereum will have increased TPS and offer even cheaper gas fees with the launch of ETH 2.0.
- Cosmos uses Proof of Stake consensus to produce blocks, while Ethereum is currently using the Proof of Work consensus mechanism. The upcoming ETH 2.0 is shifting its block production to PoS.
Learn more: Terra Luna Vs. Cosmos
Is Cosmos A Blockchain?
Cosmos is both an ecosystem and a blockchain. As an ecosystem, Cosmos is an interoperable platform that aims to solve blockchain networks’ scalability, autonomy, and sovereignty.
Cosmos is also a blockchain system that has ATOM as its native token. Like other coins, you can trade ATOM against fiat currency and cryptocurrency.
What Layer Is Cosmos?
Cosmos can be classified as a layer 1 blockchain. A layer 1 blockchain provides a foundation where participants or developers can build other blockchains or applications.
All layer 1 cryptocurrency blockchains are different in these three key areas:
- How many blockchain networks does the layer hold?
- Is the blockchain framework interoperable with other networks?
- How scalable is the blockchain network?
- How does the blockchain validate its block? I.e. Proof of Work (PoW), Proof of Stake (PoS), or Proof of Authority (PoA).
What Problem Does Cosmos Solve?
Cosmos seeks to solve the trilemma problem facing blockchain networks. These problems include sovereignty, scalability, and security.
The Cosmos blockchain strives to increase scalability by using a secondary framework to fasten the production of blocks.
Also, the IBC allows several chains to move tokens across the network and splits apps on the network into smaller app-like blockchains.
Cosmos employs a Proof of Stake consensus mechanism to secure the network.
This type of mechanism is almost 100% eco-friendly compared to the Proof of Work used by Bitcoin. It uses less energy to produce blocks, thus lower gas fees.
Unlike most blockchains, Cosmos offers an open opportunity for developers to create decentralized applications on the blockchain with no involved costs.
What Is Cosmos Crypto Used For?
The Cosmos crypto, ATOM, can serve several purposes.
- Maintain interoperability across all the zones of the Cosmos network
- ATOM can be held and staked to secure the network, mint new coins, and gain rewards.
- ATOM can be converted into other cryptocurrencies or fiat currency and spent on transactions
What Projects Are On Cosmos?
Cosmos, the internet of blockchains, has various projects within the cosmos network.
- Terra (LUNA)
- Binance Coin
- Huobi Wallet
- Anchor Protocol
Is Binance Smart Chain Built On Cosmos?
Yes. The Binance smart chain is built on the Cosmos ecosystem. BCS is one of the most significant projects developed under the Cosmos SDK and the Tendermint BFT.
What Companies Use Cosmos?
With hundreds of applications and services under the cosmos ecosystem, many companies are taking up the cosmos. Here are sectors benefiting from the use of Cosmos technology:
- Social media
- Real Estate
Actual uses cases companies include:
- Gravity Dex
- Gravity Bridge
Does Cosmos Have DApps?
To date, Cosmos has 265 decentralized applications and services. All these decentralization applications are for varying purposes. Cosmos apps serve as wallets, smart contracts, or services. Some examples of these dApps are:
- Binance Chain
- Akash Network
Is Cosmos Crypto Inflationary?
Yes. The average inflation rate for ATOM is 7% to 20% per year.
The amount of money staked on the token decides the inflation and reward to its investors.
So, to balance the market price of ATOM, the Cosmos protocol self-adjusts depending on the quantity of ATOM staked.
How Is Polkadot Different From Cosmos?
Both Polkadot and Cosmos want to create interoperability between blockchains and boost the scaling of Web 3.0. However, each plans to achieve this in unique ways.
Despite wanting to achieve interoperability and scalability, Polkadot and Cosmos differ in use cases.
Polkadot focuses more on the security of the networks while Cosmos targets adoption. Cosmos offers support for governance and an interconnected ecosystem.
Polkadot provides a consolidated security structure for the users throughout its network. It uses parachains on the network with a pool similar to the security traits of the Polkadot Relay Chain.
Because it uses the hub model, Cosmos can’t offer unified security across networks.
DOT has more dApps used in the real world than ATOM.
By the time Polkadot reaches its full functionality, it’ll have the upper hand in use in large-scale operations.
However, Cosmos has an edge in market cap growth. The market cap can reach the same levels as Polkadot with improved adoption.
Learn more: Are Cardano And Polkadot Web 3.0?
Cosmos has smart contracts. With the Cosmos ecosystem, you can build interoperable smart contracts. Some of the best projects to come out of Cosmos include the Binance Smart Chain.