Cosmos is one of the vastly underrated project in the scalability and interoperability ecosystem with the high likelihood of blockchains operating simultaneously in the future. Ben has analysed how high the upside is.
Interoperability between different blockchains is fundamental to the scalability of decentralized web to exchange information and value by building bridges between them aka web 3.0
Polkadot adopted multiple chains sharing model to solved the problem of coordinators by establishing two different types of chains—the relay chain and parachains.
Developers can use the substrate development framework to build applications specific parachains that connects to the Polkadot relay chain. Each parachain functions as its own blockchain within the Polkadot network and has it’s own local block producers which are called collator.
A collator is a maintainer of your parachain and performs the critical action of producing new block candidates for your chain and passing them to Polkadot validators for inclusion in the Relaychain.
On Polkadot parachains are validated by a shared security model meaning if the relaychain is highly secured then all parachain connected to the relaychain are equally as secured. One downside of this model is also true, if the relaychain isn’t very secured then parachains also will not be very secured. In addition to that Polkadot has a second group of validators called Fishemen which constantly check all the validators that are behaving badly.
Similar to Polkadot Cosmos network is divided into two different types of blockchains—the hub and the zones. The hub is the main Cosmos chain where all of the network’s validators are, while the zones are all other chains added to the hub that utilize the Cosmos SDK framework.
However, unlike Polkadot, where node operators need to be validators on the relay chain in order to validate on any of the parachains, every hub, zones and validators is independent in Cosmos and secures itself means there are no sharing.
There are 130 different projects are currently on Polkadot ecosystem this includes some big names such as ANKR, SUSHISWAP, CHAINLINK, ONTOLOGY, TRUSTWAP etc. As at right now, there are 247 different teams and projects utilizing Cosmos ecosystem. This includes some pretty well known projects such as both Binance exchange and Binance Smart Chain, Cryptocom, OKEX and objective protocol.
Cosmos has double the major team and project on Polkadot ecosystem giving them a clear advantage. However, when it comes to high functionality and usability, Ben says Cosmos and Polkadot are really close to each other and the race here is really neck-to-neck but they are far apart in market cap Polkadot – $17,731,807,095.46, Cosmos — $2,671,161,853.86. This is where the potential for the lower rank project comes into focus.
Cosmos has so much potentials and is reaching for the stars, its currently at it’s all time high right but there is still so much more room for it to go, He said.
Ben believes Cosmos will see its valuation rise and the price will reach $140 per token.
This episode premiered February 6, 2021