Tendermint
What is CosmosSDK / Tendermint?
Similar to Ethereum, Tendermint seeks to make blockchain technology accessible to developers. However, Tendermint's vision differs from Ethereum's by emphasizing a multi-chain model as the cornerstone of blockchain's future scalability and interoperability. Tendermint is not a standalone blockchain but rather an open-source, consensus and P2P engine. When coupled with the application layer (Cosmos) SDK, developers and enterprises use Tendermint to streamline the development of L1 blockchains.
How does it work?
Builders fork the Tendermint & Cosmos code and add custom features to create a utility specific blockchain - accelerating blockchain development.
Builders are on their own to launch their chain:
Must have enough locked value to prevent hostile takeovers
Must recruit a diverse validator set to avoid centralization
Must bootstrap an ecosystem from scratch
Must build chain communication features to avoid community isolation
Tendermint was created the within a year of Ethereum - yet the adoption and popularity is far less
Pros & Cons of CosmosSDK + Tendermint
The good:
✅ sovereign and decentralized
✅ full value capture
✅ scale independently
The bad:
❌ slow to market (semi accelerated by the SDK)
❌ must keep up with SDK updates
❌ have enough capital to ensure network takeovers are expensive - typically requiring fundraising
❌ bootstrap their own ecosystem with developer tooling and liquidity paths
❌ attract experienced Validators to avoid centralization
❌ must build interoperability features to avoid community isolation
❌ SDK is complex and intimidating for the new developer
Cosmos Consumer Chains via ICS and IBC
Tendermint's design failed to address the challenges of starting a blockchain, which is essential for fostering widespread accessibility and mass adoption.
Need a refresher of the challenges involved with starting an L1? Checkout Blockchains Are Hard To Launch
To fix these shortcomings, the "Cosmos Hub" chain offers Interchain Security and Interoperability to "Consumer Chains":
Utilizing the Cosmos Validator set to prevent hostile takeovers and avoid early centralization
Develop a rich ecosystem - using the Cosmos Hub chain as the center of the Inter-Blockchain Communication, facilitating interoperability.
The good:
✅ ICS validator set secures new chains with ATOM
✅ IBC enables ecosystem growth with interoperability
✅ scale independently
The bad:
❌ not sovereign (reliant on ICS for security and finality)
❌ must pay security rent to ICS
❌ locked into ICS stack - hard fork and re-genesis required for independence
❌ slow to market (semi accelerated by the SDK)
❌ must keep up with SDK updates
❌ bootstrap their own ecosystem with developer tooling and liquidity paths
❌ SDK is complex and intimidating for the new developer
ICS attempts to address the shortcomings of Tendermint but undermines the sovereignty of builders
Canopy and Cosmos Comparison
Architecture
✅ Peer-to-Peer
➖ A builder SDK for blockchains
❌ Centralized around Cosmos Hub
Scaling Method
✅ Every new chain horizontally scales Web3
✅ Independently
❌ Single Chain: Cosmos Hub
Builder Sovereignty
✅ Progressive
✅ Full
❌ Critical, lifelong reliance on host for security & finality
Ecosystem
❌ New
❌ Fragmented
❌ Small
Long range attack
✅ Proof of Age
➖ Centralized checkpointing
➖ Centralized checkpointing
Builder Difficulty
✅ Quick to market
❌ Slow to market
❌ Slow to market
Builder Economic Security
✅ Immediate
❌ Neglected / typically fundraising required
✅ Immediate
Builder Framework
➖ Fork & Clone: Golang
❌ Complex with dependecy to Tendermint
❌ Complex with dependecy to Tendermint
Chain Resources
✅ Exponential: Each new chain is additive
✅ Independent
❌ Limited: single chain
Builder Success
✅ L0 Premium
✅ L1 Premium
❌ Typically lower FDV than sovereign L1s
Native Interoperability
✅ Permissionless
➖2 Way through IBC
➖2 Way through IBC
Builder Decentralization
✅ Full/Progressive
✅ Full
❌ Semi
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