The Cosmos ecosystem is a bedrock for future blockchain development and Konstellation is excited to join the Cosmos Network Ecosystem
In 2009, Satoshi Nakamoto released the Bitcoin blockchain, which became the first generation of blockchain. Transactions were the only possible action. In 2015, Vitalik Buterin released the Ethereum blockchain. The so-called second generation of blockchain was born. Transactions could be linked to a smart contract and execute a defined action. But everything built on Ethereum has to use the resources of the one main chain. Enter the Cosmos ecosystem, brought to us by CEO Jae Kwon, which is part of the onslaught of public blockchains seeking to be the star of the third generation of blockchains. Third generation blockchains typically seek to solve one or more of the three features identified by Buterin’s “blockchain trilemma”: scalability, security, and decentralization.
The Cosmos Network is a project lead by the Interchain Foundation and realized by Tendermint Inc. The purpose of the project is to create an ecosystem, with the Cosmos Hub at its center, which could eventually become the “Internet of Blockchains.” Inter-Blockchain Communication (IBC) technology allows any blockchain, public or private, to be tied to other blockchains to create a network of blockchains. Tendermint Consensus replaces the old proof of work system first used by Bitcoin with a more sustainable mechanism called Practical Byzantine Fault Tolerance (pBFT). Instead of mining to secure the chain, token holders delegate their power to selected validators that create blocks much faster. This mechanism is just one of the many ways that Cosmos technology is much more scalable than Ethereum.
Although Konstellation has been a part of the NEM ecosystem for the past year and a half, we came to the conclusion that joining the Cosmos ecosystem and building upon their groundbreaking technology is an integral part of the next step of our journey. Our vision requires interoperability and ease-of-use as non-negotiable primary features. Because Konstellation aims to be a niche ecosystem for financial services, becoming an important hub for other service providers within what we hope will be an ever-expanding Cosmos ecosystem makes a lot of sense. Creating a specific blockchain just for this industry niche creates a more sustainable, scalable, secure and, in the long run, more decentralized system. Moving from the Swiss army knife approach of NEM to the surgical precision capable with the application-specific blockchain approach made possible by Cosmos technology, Konstellation Network can improve and grow without limitations.
The NEM vision is similar to the original Ethereum one. Both projects are articulated upon the idea of creating one chain for several purposes. People create their project and dApp on top of the main blockchain which has to process all the transactions from every dApp in sequential order. In terms of scalability, this vision is questionable since the number of projects will assuredly increase over time and the number of transactions per second can hardly follow accordingly. However, because of the multitude of actors and chains in the hub-and-zone environment of Cosmos, processing transactions faster will be easier since each transaction can occur in parallel on blockchains designed specifically for that transaction. In the case of the Konstellation Network, transactions will be distributed only among the financial services providers on the network.
Thus, the Cosmos ecosystem is a better foundation for the Konstellation Network. Cosmos has already attracted dozens of top project teams to execute their vision using Tendermint tools to provide a robust environment for development. Leading decentralized finance (DeFi) projects like Kava and Terra have already spun up their mainnets with Cosmos SDK as a basis. OmiseGo has spun up a testnet and will be deploying their dex on Cosmos. The horizontal scalability method proposed by Cosmos seems to be more adequate and implies that actors must provide their services simultaneously across several chains. This capability aligns with Konstellation’s vision for the future of DeFi and bridging the gap between traditional financial institutions and the cryptoverse.
The clincher for our decision to shift to the Cosmos ecosystem was the Inter-Blockchain Communication (IBC) protocol. Using this tool, DARC token holders will be able to exchange their digital assets cross-chain via the network of chains that the Cosmos team is in the process of creating bridges for, like Ethermint provides for Ethereum. IBC will allow the transfer of digital assets from one chain to another in a secure manner that maintains the uniqueness of each asset.
We are proud to join the Cosmos ecosystem and continue developing our project on it. Stay tuned for more news!