// GLOSSARY -- BLOCKCHAIN & CRYPTO FUNDAMENTALS

What is Cosmos?

1 min read Updated

Cosmos is a decentralized network of interconnected blockchains using the Tendermint consensus engine and Inter-Blockchain Communication (IBC) protocol — enabling an 'internet of blockchains' architecture.

WHY IT MATTERS

Cosmos pioneered the app-chain thesis: instead of all applications sharing one blockchain, each application gets its own chain with custom execution, governance, and economics. The IBC protocol connects these chains.

The Cosmos SDK makes launching a custom blockchain practical — providing modular components for consensus, staking, governance, and token management. Projects like Osmosis (DEX), dYdX (perps), and Celestia (DA) are built on Cosmos.

IBC (Inter-Blockchain Communication) enables trustless cross-chain transfers and messaging between Cosmos chains — one of the most mature and widely-used interoperability protocols.

FREQUENTLY ASKED QUESTIONS

What is IBC?
Inter-Blockchain Communication — a protocol for trustless cross-chain communication between Cosmos chains. Light client verification ensures security without trusted intermediaries.
What is the Cosmos SDK?
A framework for building custom blockchains. It provides modules for consensus (Tendermint/CometBFT), staking, governance, and application logic. Dramatically reduces the effort to launch a new chain.
How is Cosmos different from Ethereum?
Ethereum: one chain, many apps sharing resources. Cosmos: many chains, each app gets dedicated resources. Ethereum scales through L2s; Cosmos scales through app-chains with IBC.

FURTHER READING

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