Today we will continue to analyze the 35 projects that Grayscale is about to add to its holdings. As mentioned before, when Grayscale starts with a small project, it will have tens of millions of dollars. A single order of tens of millions of dollars may also be a huge pull, and other ETFs may also enter these projects, so it is necessary to ambush in advance and understand the fundamentals of these projects clearly.
At present, I have sorted out these projects by category (the classification of many projects outside is currently inaccurate):
1. Layer 1 track (13 currencies): Aptos (APT), Celestia (TIA), Core (CORE), Cosmos (ATOM), Toncoin (TON), TRON (TRX), Internet Computer (ICP), Kaspa (KAS), VeChain (VET), Mantra (OM), Celo (CELO), Sei (SEI).
2. Layer 2 track (8 currencies): Optimism (OP), Arbitrum (ARB), Starknet (STRK), Polygon (POL, formerly MATIC), Mantle (MNT), Immutable (IMX), and Metis (METIS).
3. The DeFi track includes 7 currencies: Jupiter (JUP), Ondo Finance (ONDO), Ethena (ENA), Aerodrome (AERO), Pendle (PENDLE), UMA Project (UMA), and Injective Protocol (INJ).
4. Cross-chain & EVM includes 2 currencies: THORChain (RUNE) and Neon (NEON).
5. There are 2 currencies in the DePIN track: Arweave (AR), Helium (HNT), and Akash (AKT).
6. The AI+ track includes 2 currencies: Fetch.ai (FET) and Worldcoin (WLD).
7. There is 1 currency in the Meme track: Dogecoin (DOGE).
We talked about apt, Tia, and core in the past two days. Today, we will talk about ATOM in that order. Because the ATOM project is very important to the cryptocurrency world, we will focus on one of them in this issue. Understanding this project will help you understand many projects in the future.
4. ATOM (Blockchain Science-Cosmos Technical Analysis and Comparison with Polkadot)
For this project, I would like to summarize it in one sentence: it is a good tool, but not a good investment currency. We have talked about almost 600+ projects so far, and many projects that have emerged later are built based on Cosmos SDK, which shows the advantages of its tools, but the problem is that this tool is too easy to use, but the token has no effect (the same is true for Celestia, which is another reason why I am not very optimistic about TIA. Modular DA is a good tool, but TIA does not empower the tool, or it can be said that it is difficult for tokens to empower tool-type applications!)
Introduction to ATOM
The Cosmos project is a highly forward-looking and innovative cross-chain blockchain project initiated by the Tendermint team in 2016. The goal of the Cosmos project is to ultimately realize the "Internet of Blockchains" by implementing a basic function such as token transfer and construct a deeply integrated token economic ecosystem.
It allows anyone to create their own independent application chain (a.k.a. "zone") and set their own validator security.
Cosmos hopes to use cosmos sdk and tendermint tools to allow developers to modularize and standardize to reduce the development cost of a chain, so that everyone can easily have their own blockchain, and form an ecosystem through the IBC cross-chain protocol and cosmos hub and zone to provide connection capabilities for different chains.
Three important components of Cosmos
1. Tendermint is a consensus engine and BFT consensus algorithm. It abstracts the consensus and P2P protocols to form a separate Tendermint layer or module. A state machine can be built on top of Tendermint using any programming language. Tendermint will be responsible for the replication of information (in accordance with the consistency and security required by the consensus).
2. Cosmos SDK is a modular framework that simplifies building secure blockchain applications. Build multi-asset public proof-of-stake (PoS) blockchains, such as Cosmos Hub, and licensed proof-of-authority (PoA) blockchains that can natively interoperate with other blockchains.
SDK-based blockchains can choose to use predefined modules or create their own modules. This means that developers can build blockchains based on specific use cases without having to worry about the low-level details of building a blockchain from scratch. Predefined modules include staking, governance, and token issuance.
3.IBC is a communication protocol between blockchains and can be considered as the TCP/IP of blockchains. It allows fast-finality blockchains to exchange value and data with each other in a decentralized manner. The connection between blockchains is achieved through the Inter-Blockchain Communication protocol (IBC). Due to the modular design of the IBC protocol, IBC application developers do not have to pay attention to the underlying details of clients, connections, and proof verification.
The Cosmos Network
Because the original intention of cosmos was to create a cross-chain network, but while building this cross-chain network, it also created a super easy-to-use tool, the cosmos SDK. It is so easy to use that others can easily launch chains with it. I don’t need to use your cross-chain network at all. As a result, no one uses its original cross-chain chain. For the content about the cosmos chain, please refer to the previous content.
Focus on the capabilities of the SDK
What is an application-specific blockchain?
Application-specific blockchains are blockchains tailored for a single application. Unlike building decentralized applications (DApps) on a base-level blockchain like Ethereum, developers can build their own blockchain from scratch, which means developing a complete full node client, light node client, and all the interfaces required to interact with the node (such as CLI, REST, etc.).
Modular SDK blockchain architecture
Execution Layer
The execution layer is responsible for processing and executing transactions. The state machine within the blockchain handles the execution of transaction logic, ensuring that each transaction follows predetermined rules and state transitions. When a transaction is submitted, the execution layer processes it, updates the state, and ensures that the output is consistent across all nodes. In the Cosmos SDK, the execution layer typically involves predefined modules and transaction types rather than smart contracts.
State Machine
The blockchain is essentially a replicated deterministic state machine. A state machine is a computer science concept in which a machine can have multiple states, but can only be in one state at any given time. The state machine describes the current state of the system, and state transitions are triggered by transactions.
Settlement Layer
The settlement layer is responsible for finalizing and recording transactions on the blockchain. It ensures that all transactions are accurately settled and cannot be tampered with, providing a verifiable record of all on-chain activities. The settlement layer can be performed on-chain or externalized. For example, if Rollkit and Celestia are used as data availability and consensus layers, the settlement layer can be separated by introducing fraud or validity proofs to further enhance security and efficiency.
Consensus Layer
The consensus layer ensures that all nodes in the network agree on the order and validity of transactions. This layer uses consensus algorithms such as Byzantine Fault Tolerance (BFT) or Proof of Stake (PoS) to reach agreement even in the presence of malicious nodes. Consensus is critical to maintaining the security and reliability of the blockchain. The default consensus engine for the Cosmos SDK is CometBFT, but recent versions allow users to choose their own consensus engine, which provides more flexibility for developers.
The Data Availability Layer (DA Layer) is a key component in the consensus layer that ensures that all participants in the network have access to all necessary transaction data. This layer is critical to preventing data withholding attacks, where certain nodes may attempt to disrupt the network by not sharing critical transaction data.
Taking Rollkit as an example, after a user initiates a transaction, the transaction is propagated in the rollup network through light nodes. The transaction is verified by the full node and aggregated into a block by the sorter. The block is published to the data availability layer (such as Celestia), ensuring that the data is accessible and in the correct order. The rollup light node verifies the availability of the data from the data availability layer. The full node then verifies the block and generates the necessary proofs, such as fraud proofs for optimistic rollups or zk-SNARKs/zk-STARKs for zero-knowledge rollups. These proofs are propagated in the network and verified by other nodes to ensure the integrity of the rollup. Once all verifications are completed, the state of the rollup is updated and the transaction is finalized.
The interoperability layer allows communication and interaction between different blockchains. This layer facilitates cross-chain transactions and data sharing, enabling various blockchain networks to interoperate seamlessly. Interoperability is essential to building an interconnected blockchain ecosystem, which enhances the functionality and influence of blockchains.
Token Data
The current price of the currency is 4.4 US dollars, which is already a new low. The highest point in March of 24 was only 14, and the highest point in 21 was 44. So first, the high point of this wave did not reach half of the high point in 21. Second, the lowest point in 23 years to the high point in 24 years only doubled (7-14), and the recent performance is even weaker, and it has reached a new low. The current market value is 1.7 billion US dollars, and all the tokens have been released, but it has an annual inflation of about 7%-20%, which depends on the number of ATOMs staked in the network. But it is still relatively large. Generally speaking, 5% is more appropriate. The performance is really rubbish.
Finally, let me summarize it as before. The project is a good project and has promoted the development and progress of blockchain, but the coin is not a good coin and has no strong connection and binding with its own ecosystem. As for whether Grayscale can help us, it should be OK. We have talked about 4 projects. According to the current ranking, they should be 1. APT, 2. Atom, 3. core, and 4. Tia. #Aptos #Cosmos #CORE #tia
