Cosmos is a widely adopted blockchain technology that has become a big infrastructure provider for new blockchains. Most major chains implement the Inter-Blockchain Communication protocol (IBC) for their cross-chain messaging standard, which was invented by Cosmos. However, the Atom token’s poor tokenomics prevented it from capturing the value from IBC’s adoption. The issue has been addressed with Atom 2.0, and the next few years of Cosmos development will focus on accruing value to the Atom token. Cosmos works as the underlying technology for the interoperable blockchain narrative that could play out in the next cycle.
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The Rise of Cosmos Technology
For a long time now, I’ve been a strong advocate for Cosmos technology. It is one of the most widely adopted across all blockchains, second only to Ethereum and the UVM. Back in 2018, Cosmos was already a big infrastructure provider for new blockchains. Most of the major chains that you see today implement the IBC or inter-blockchain communication protocol for their cross-chain messaging standard, which was invented by Cosmos.
The Struggle with Tokenomics
Despite Cosmos being a widely adopted technology, one of its weaknesses was its poor tokenomics. The Atom token was not set up to capture the value from ibc’s adoption.
Atom 2.0 – Addressing Tokenomics Issue
However, in 2022, the issue of tokenomics has been addressed with Atom 2.0. The next few years of Cosmos development will focus on accruing value to the Atom token, which will directly impact its price. This should align nicely with the next crypto Bull Run in 2023 and 2024.
The Future of Interoperable Blockchain
Cosmos works as the underlying technology for the interoperable blockchain narrative that is expected to play out in the next cycle. Blockchain interoperability is crucial in achieving the vision of a decentralized, interconnected world. Cosmos technology plays a crucial role in realizing this vision.
