The Cosmos SDK is a developer resource, also known as the “Base Coin.” The main goal of the SDK is to reduce the complexity of creating ABCI for general blockchain functionality and allow developers to focus on custom applications in a standardized environment.
Developers can take this basic framework with built-in tokens, management, partitioning — all the essential features needed for a blockchain-and then add the desired functionality with plugins — basically the application layer of the Cosmos network. Tendermint Core is responsible for the consensus in the Cosmos Hub.
The blockchains that are linked to the Hub maintain their own sovereignty without switching to Tendermint. Developers can create their own blockchains and applications using the Cosmos SDK and run them on top of the Tendermint core, taking care only of the application layer.
ABCI uses the socket protocol to allow the negotiation mechanism to manage the state of an application running in another consistent process, making Cosmos capable of supporting a wide range of cryptocurrencies and scripting languages such as Bitcoin, Ethereum, ZeroCash, CryptoNote, and many others.
These blockchains can communicate via the IBC protocol, even if they have different consistent algorithms. Developers can implement application-specific semantics on top of IBC, which allows the transfer of valuable assets between other blockchains while maintaining their contractual features.
IBC works best with high-degree-of-completion (PoS) blockchains but can be implemented through binding zones on blockchains that do not have this feature (PoW). A typical example of a binding zone is Ethermint, a Tendermint-based Ethereum with POW capabilities removed and runs on a PoS consensus (something that projects like Casper have been trying to implement for years).
Cosmos SDK aims to solve the scalability, usability, and sovereignty of the modern blockchain infrastructure. The world’s largest blockchains, such as Bitcoin and Ethereum, are a prime example of the scalability problem: the first can process only 7 transactions per second, and the second — 25. As for usability, developers do not yet have the scope of actions when creating modern applications on the blockchain. The Cosmos cryptocurrency implements a multi-layer structure and the Go programming language to solve this problem. Another problem is that blockchain applications rely heavily on the management of their underlying environment. The multi-level system allows each application to have its own blockchain, independent of the main chain.
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