A Guide to Cosmos Terminology
Get up-to-speed on all things cosmos with our guide on key terminology related to this rapidly evolving space! Learn about Osmosis (OSMO), Cosmos Hub (ATOM) and Inter-Blockchain Communication Protocols (IBC) today!
Jan. 12, 2023 3:16PM
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A colorful illustration depicting various elements from within a cosmos system including planets, stars, galaxies etc..
In the ever-evolving world of blockchain technology, it can be difficult to keep up with all the new terms and concepts. One such area is the Cosmos ecosystem, a network of interconnected sovereign L1 chains that are connected through IBC (Inter-Blockchain Communication). To help you better understand this emerging space, here is a guide to some of the most important terminology related to Cosmos. The first term you should know is “Cosmos” itself. This refers to the entire ecosystem of IBC connected sovereign L1 chains. Within this ecosystem, there are several other important terms you should familiarize yourself with. One such term is “Osmosis” (OSMO), which refers to the L1 DeFi Hub of the Cosmos. Osmosis provides users with access to a variety of decentralized finance (DeFi) services, including lending and staking protocols, as well as tokenized assets and derivatives markets. Another key term in the Cosmos ecosystem is “Cosmos Hub” (ATOM). This was one of the first IBC connected chains and its primary value proposition lies in being one of many security providers in the Cosmos network. The ATOM token serves as an incentive for validators on the network who secure transactions and maintain consensus across all participating blockchains. Finally, another important concept related to Cosmos is “IBC” or Inter-Blockchain Communication protocol. This protocol allows different blockchains within the Cosmos ecosystem to communicate with each other by exchanging data securely without having to trust any third party intermediary or centralized entity. It also enables interoperability between different blockchains so that users can move their tokens between them easily and securely without having to go through any middlemen or custodians. These are just some of the key terms related to Cosmos that you should know if you want to stay up-to-date on this rapidly evolving space. With these basics under your belt, you will be able to more easily navigate this exciting new world and make informed decisions about your investments in it!