Forem: Mitchyugan

Exploring The Main Concepts in the Cosmos SDK, Part 1 Accounts.

Mitchyugan — Wed, 14 Feb 2024 22:13:05 +0000

Develop an understanding of the main concepts of the Cosmos SDK, from account to modules, keepers, queries, and protobuf in the interchain. Today we will be learning about accounts. Stay tuned for other concepts.

Accounts

An account is a pair of keys:

PubKey: a public key
PrivKey: a private key

A public key is a unique identifier for a user or entity that is safe to disclose. Private keys are sensitive information that users are required to manage confidentially. Private keys are used to sign information in a way that proves to others that a message was signed by someone using the private key corresponding to a given public key. This is done without revealing the private key itself.

Public key cryptography

Public key cryptography is also known as asymmetric cryptography and is a cryptographic system that employs pairs of keys. Every pair consists of a public and a private key. The security of the system is not endangered as long as the private key is not disclosed. Asymmetric cryptography do not require users to use a secure channel to exchange the keys for encryption and decryption, unlike symmetric cryptography.

Asymmetric cryptographic keys are usually very long. And this is good because: the longer the key, the more difficult it is to crack the code. To Break an asymmetric key an attacker would need to try every possible key to find a match.

Asymmetric keys always come in pairs and offer their owner various capabilities based on cryptographic mathematics. The public key is meant to be distributed to whoever is relevant, while the private key is to remain a secret. This is similar to your bank account number, but keeping the pin safe with you.

Asymmetric cryptography has two main implementations

Authentication: The public key serves as a verification tool for the private key pair.
Encryption: Only a private key can decrypt the information locked by the corresponding public key.

Sign and verify

Lets see an example of using private and public key to sign and verify.

Bob and Alice are having a conversation, Alice made a public announcement and Bob wants to verify it's indeed from Alice:

Alice gives Bob her public key.
Alice signs the announcement with her private key.
Bob receives the announcement sent by Alice along with it's signature.
Bob verifies the announcement using Alice public key.

Bob used Alice public key to verify if the private key used to sign that signature corresponds to Alice public key.

Private keys are used to prove that messages originate from the owners of accounts known by their public keys: the signatures prove that messages were signed by someone that knows the private key that corresponds to a given public key. This is the basis of user authentication in a blockchain, and why private keys are strictly guarded secrets.

Conclusion

Here is a wrap we've been able to go through Accounts, one main concepts of the cosmos SDK. Stay tuned for other Concepts coming shortly

Happy Learning!

Reaching Consensus in a Distributed Network: The Byzantine Generals Problem.

Mitchyugan — Wed, 14 Feb 2024 14:42:33 +0000

Blockchain technology is ever evolving and many are adapting it in various fields and industries, but a known challenge in distributed networks which is provably unsolvable but can nonetheless be reduced, is how to reach consensus or an agreement, In a distributed network without authorities, we need a process to reach consensus about what is to be considered the truth. This is referred to as distributed consensus.

This problem is commonly known as the Byzantine Generals Problem. An overview of well-known blockchain solutions to this provides perspective and insight into the options the interchain offers because it allows a network designer to choose the consensus algorithm that is best suited to the developer's purpose.

The Byzantine Generals Problem

In the traditional description of this problem, generals whose armies are spread around a target city need to reach a consensus on a time to attack. The generals can only rely on unsecured communication channels to achieve this.
A lack of acknowledgment can either be caused by a failure to deliver a message, by a dead general, or by a failure to deliver the acknowledgment. While there are variations of the problem description to adapt to varying real-world fault-tolerance situations, most descriptions include an element of catastrophe if the generals fail to coordinate their actions.

The practical challenge of blockchain reflects this hypothetical. Similar to the generals who must decide when to attack, the agreed transaction list in a distributed ledger has to be identified, and consensus on the correct order of transactions has to be reached.

Network failures in a Byzantine sense are:

Fail-stop failures: a node fails and stops operating.
Arbitrary node failures: a node fails to return a result, responds with an incorrect result deliberately or not, or responds with a result different from other results in the network.

When a distributed network reaches consensus even with nodes failing to respond or responding with wrong information (i.e. faulty nodes), it has Byzantine Fault Tolerance (BFT). BFT ensures that a distributed network can continue to work even with faulty nodes, as the consensus is a result of collective decision-making.

Reaching consensus

In addition to the chain of blocks, one of the innovations introduced by Bitcoin was to use Proof-of-Work (PoW) to reach consensus. Since then, many other consensus algorithms have been proposed and employed. note that there were many consensus algorithms before Bitcoin.

Many teams have experimented with distributed consensus using many algorithms deployed to different chains. The algorithms that exist can be compared in terms of the distribution of authority, expected performance, and transaction finality.

Transaction finality can be categorized as:

Probabilistic: It is exponentially more improbable that a seen transaction will be reversed.
Deterministic: The protocol prevents alterations in a definite way.

Recall that in blockchain individual transactions are sent to the network from individual nodes, Each node must pass transactions to other nodes. Because of the time delay required for data to travel across the network, not all nodes will see the same transactions at the same time.

Each node must therefore build its own order of transactions. Since all nodes participate equally, there is no authoritative order of transactions. Nevertheless, the network must decide which node's version (or any version) of the truth will become the authoritative truth, also known as the canonical chain.

There are several ways different blockchain networks are approaching this and we will go over some of the most popular consensus algorithms:

Proof-of-Work (PoW)

In a Prof-of-work (POW) consensus mechanism, nodes complete a task of arbitrary difficulty which when combined with ordered transactions in a block yields a hash function result that matches certain criteria. Finding such a solution is taken as evidence of considerable effort, meaning proof that considerable work must have been invested in the search, hence the name.

The network's nodes, aka "miners", conduct their searches independently. The successful node that announces a solution first receives an economic reward to encourage participation in the process.

If a node wishes to attack the network it must first have an authoritative position, This known attack vector is called the 51%-attack. As the name suggests, if a node acquires more than 50% of the total problem-solving capacity of the network, that node is theoretically able to alter the consensus.

The amount of work required to mine a block is called difficulty. PoW networks set a target average time for a solution to be found by any node on the network. The difficulty adjusts to compensate for increasing/decreasing total network problem-solving capacity. PoW networks do not get faster as more computing capacity is added. They become more resilient by increasing difficulty, which raises the threshold a 51%-attacker needs to overcome.

Proof-of-Stake (PoS)

Proof-of-Stake (PoS) is another method of selecting the authoritative node or validator for a given block, based on the assumption that those with the most to lose are the most incentivized to safeguard network integrity.

Validators must face a disincentive for bad behavior as well as a high probability that bad behavior will be detected. The burden of detection usually falls on the rest of the network validators, who can either accept or reject the validator's opinion. Validators place their staked funds at risk and face economic penalties for emitting opinions that are ultimately rejected by sizable numbers of other nodes, this also includes slashing off a percentage of its staked token and suspending it for a while. This makes a validator to generate blocks that are likely to be accepted by the network.

PoS validators are selected in a pseudo-random fashion, with a larger stake producing a higher probability of being selected to generate a block. While PoS systems generally reward validators with new coins for honest behavior, so-called block rewards, validators also receive transaction fees in return for generating blocks that the rest of the network accepts. A criticism of PoS is that it tends to centralize economic rewards in a small number of already wealthy nodes, those validators with sufficiently high stakes to win selection.

Delegated-Proof-of-Stake (DPoS)

An extension of Proof-of-Stake algorithms is Delegated-Proof-of-Stake (DPoS). It is used for example in BitShares, Steem, Lisk, EOS, and Tron.

In this type of consensus mechanism, so-called witnesses/validators are elected by the stakeholders of the network to secure the network, who "vote" by staking their own tokens upon a given witness/validator. Afterward, several witnesses are chosen for the block creation so that they represent at least 50% of the stakeholders' votes, thereby ensuring a majority consensus regarding new blocks.

Witnesses/validators are paid for their services, receiving fees for creating and validating blocks; those who voted for an active witness typically receive a share in these rewards proportional to the value of the tokens they staked. As a result, the operation of DPoS networks tends to be more economically balanced than pure PoS.

Because the number of witnesses is limited, If a witness misbehaves, the network's community can withdraw their votes. Witnesses that no longer hold enough votes lose their income basis.

Alongside ascribing the role of witnesses to some participants, DPoS networks also elect delegates. Delegates are a group of participants that supervise network governance and performance, and propose changes that are then voted on by the entire network.

Many consider DPoS algorithms superior to PoW and PoS because of their fast block creation, high degree of security, energy efficiency, level of integrity, and democratic structure.

However, DPoS systems are less decentralized than PoW and PoS systems, because they have fixed validator sets and higher barriers to entry. In pure PoS systems, there is no fixed validator set and the number of potential validators that can participate in the consensus mechanism is dependent on the total supply of tokens in circulation.

Proof-of-Authority (PoA)

Proof-of-Authority (PoA) is a simple mechanism that solves faster block times by relying on validators that are pre-selected based on the belief that they are trustworthy. In other words, validators are allowed to produce blocks based solely on their pre-existing authority - they do not need to engage in the practice of competitively searching for a nonce, which makes PoW networks consume high energy.

This benefit of PoA networks is balanced despite the criticism that everyone needs to trust the PoA validators in order to trust the overall network and blockchain. Such centralization of authority might be considered contrary to the motivations originally driving the creation of a blockchain network.

Practical Byzantine Fault Tolerance (pBFT)

Practical Byzantine Fault Tolerance (pBFT) was first introduced in 1999 and arose from academia.

You can access the 1999 paper by Miguel Castro and Barbara Liskov on pBFT Here There is also an intuitive presentation you can look at.

In pBFT, a replica is a network node that maintains a full copy of the ledger state. pBFT is a three-phase protocol. Periodically, a "primary" replica is selected to create a new block, and it broadcasts a message containing an order of transactions to the other replicas for approval. When a threshold of agreement is reached, the message is verified. The broader network is informed about transaction blocks when they are finalized (i.e. "signed by sufficient replicas").

pBFT brings two main advantages to consensus on blockchains:

Energy efficiency: consensus is achieved without having to conduct expensive computations, such as in PoW algorithms.
Transaction finality: once a block is finalized it is immutable, as are all the included transactions.

This of course is a very simplified presentation!

CometBFT and consensus in the interchain

While most consensus implementations are tightly coupled with a particular blockchain project, the interchain focuses on simplifying the process of creating blockchains (among others) by offering a decentralized consensus mechanism called CometBFT.

CometBFT's engine runs its own public blockchain. It differs from Ethereum on its consensus protocol, as it uses the concept of validators who need to bind funds to validate, and who then validate blocks over the course of a certain number of rounds.

CometBFT offers the most mature Byzantine Fault Tolerance, transaction finality, and a great deal of flexibility - flexibility that is passed to the developers of custom blockchains built with the Cosmos SDK.

Exploring the Key States of a Blockchain Lifecycle.

Mitchyugan — Sat, 13 Jan 2024 23:43:39 +0000

Introduction

This article goes through the lifecycle of a Blockchain, You can get a deeper understanding of the terms and contents in this Article: 100+ Essential Blockchain Terminologies Explained

Blockchain technology has fundamentally transformed the way we approach data and transactions. It serves as the underlying architecture for cryptocurrencies, smart contracts, and a multitude of other applications. In this article, we’ll embark on a journey through the lifecycle of a blockchain to gain a deeper understanding of its power and potential.

Genesis Block (The Birth of Every Blockchain):

Every blockchain starts with a single block known as the “genesis block.” This foundational block marks the beginning of the blockchain’s journey.

Transaction Creation (Initiating Digital Transactions):

Users play a vital role in kickstarting the blockchain by creating transactions. These transactions encompass various activities, from sending cryptocurrencies to executing complex smart contracts. Transactions are the lifeblood of the blockchain, representing the actions that occur within the network.

Transaction Verification (The Role of Miners and Validators):

Transactions are broadcast across the network, where miners and validators come into play. They are responsible for verifying the validity of transactions, ensuring that they adhere to the network’s consensus rules, and checking digital signatures.

Block Formation (Grouping Transactions Together):

Valid transactions are grouped into blocks, and miners engage in a competitive process, be it Proof of Work (PoW) or Proof of Stake (PoS), to solve complex cryptographic puzzles. The first miner to succeed adds the block to the chain.

Consensus (The Backbone of Blockchain):

Consensus mechanisms, such as PoW or PoS, are implemented to guarantee unanimous agreement among all network participants regarding the validity of the new block and its rightful place in the chain. This consensus acts as the adhesive holding the blockchain together.

Block Addition (Expanding the Chain):

Upon reaching a consensus, the new block is officially appended to the blockchain, contributing to the creation of an unbroken, immutable chain of blocks. This chain serves as the ledger of truth for all network transactions.

Block Validation (Ensuring Block Integrity):

Network nodes validate each new block to ensure compliance with the protocol’s rules. Valid blocks are accepted into the chain, while invalid ones are rejected, preserving the blockchain’s integrity.

Chain Forks (Managing Temporary Divergence):

Occasionally, simultaneous solutions to cryptographic puzzles by two miners may lead to temporary forks in the blockchain. These forks are resolved as the network converges on a single valid chain, ensuring consensus prevails.

Smart Contract Execution (Automating Transactions):

In blockchain platforms like Ethereum, smart contracts automatically execute when predefined conditions are met. These self-executing contracts enable a wide range of decentralized applications.

Consensus Updates (The Evolution of the Protocol):

Blockchain networks can adapt and evolve through updates or hard forks, which may include protocol enhancements, improved security measures, or the addition of new features, ensuring the blockchain remains relevant.

Data Storage (Immutable and Distributed Records):

Blockchain maintains an immutable record of all transactions and smart contract states, securely distributed across the network. This transparency enhances security and trust.

Decentralization (The Power of Distributed Networks):

As more blocks are added over time, the blockchain becomes increasingly secure and decentralized. No single entity exerts control, making it resistant to manipulation.

End of Life (Theoretical Infinity):

In theory, a blockchain can exist indefinitely. However, in practice, blockchain networks may evolve or yield to newer technologies as the ecosystem continues to grow and adapt.

Conclusion

The blockchain lifecycle is a fascinating journey brimming with innovation and potential. As blockchain technology continues to mature, it holds the promise of revolutionizing industries and reshaping the way we transact, record data, and build trust in a decentralized world.

100+ Essential Blockchain Terminologies Explained

Mitchyugan — Sat, 13 Jan 2024 23:39:35 +0000

This is a list of essential terminologies in blockchain with an excellent explanation of them. This Article explains several terms that are relevant to both newbies and experts.

Address: This is a unique identifier that represents a user or an account within a blockchain network. It is commonly used for sending and receiving cryptocurrencies or digital assets on the blockchain. An address usually consists of a string of alphanumeric characters and is associated with a cryptographic key pair, which includes a public key (the address itself) and a private key (used for signing transactions and accessing the associated funds).
Altcoin: This is a term commonly used in the cryptocurrency space to refer to any cryptocurrency that is not Bitcoin. It stands for “alternative coin,” indicating that it’s an alternative to Bitcoin. Examples of altcoins include Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Cardano (ADA), and many others. These altcoins often have their own unique features, use cases, and underlying technologies that differentiate them from each other and from Bitcoin.
Atomic Swap: An atomic swap is a cryptographic technique that allows two parties to exchange different cryptocurrencies directly with each other in a secure and trustless manner, without the need for a centralized intermediary like an exchange. The term “atomic” in atomic swap refers to the indivisible nature of the exchange — it either happens entirely or doesn’t happen at all. This ensures that neither party can be left in a partially completed or unfair state during the exchange process.
BFT(Byzantine Fault Tolerance): This concept is a mechanism that helps a blockchain network maintain its integrity and functionality even when some members of the network are behaving maliciously or experiencing failures. It ensures the network’s reliability and consistency in the presence of adversarial nodes.
Blockchain: A blockchain is a decentralized digital ledger that holds and manages transaction records across a network of computers. Transactions are organized into blocks, which are interconnected sequentially, forming a chain-like structure. This architecture ensures transparency, security, and immutability of data.
Alternative Definition: A blockchain is a cryptographic framework designed to maintain a secure, decentralized, and tamper-resistant digital ledger. It involves grouping digital transactions or data into blocks, which are then linked using cryptographic signatures. This design makes it extremely challenging to fake, manipulate, or compromise the integrity of the recorded information.
Blockchain Bridges: These are specialized smart contracts or protocols designed to establish a connection between two distinct blockchain networks. They serve as a means of enabling interoperability and communication between these separate chains. One of the key functions of blockchain bridges is to facilitate the secure and trustless transfer of assets and data between different blockchains, allowing users to interact with assets on one blockchain as if they were native to another blockchain.
Blockchain Layer: This refers to a distinct level or component within a blockchain architecture. Each layer serves a specific purpose and contributes to the overall functionality and capabilities of the blockchain system. The concept of layers is often used to enhance scalability, modularity, and interoperability in blockchain networks.
Blockchain Protocols: These are a set of predefined rules that govern the operations of a blockchain network. These protocols are designed to establish and maintain various aspects of the blockchain ecosystem, with a focus on security, network communication, and achieving consensus among participants. examples are security protocols, Network protocols, and consensus protocols.
Block: A block serves as a container that organizes and stores transactional data along with other pertinent information. Within a block, you’ll find the records of transactions, the block’s unique hash, a reference to the previous block’s hash, and additional data. With every new transaction added to a blockchain, a fresh block is generated to encapsulate it.
Block Creation: This is the process where Miners compete to create a new block containing a set of transactions from the mempool. This block also includes a reference to the previous block’s hash. forming a chain of blocks hence the term “Blockchain”.
Block Data: This refers to the information that is recorded and stored within the blocks of a blockchain, The block data consists of the Block Header, The list of transactions within the block, the block hash, etc.
Block Explorer: This is a tool, often in the form of a dApp, that allows users to explore and view information about a blockchain. It provides a user-friendly interface for accessing and visualizing various details related to blocks, transactions, addresses, and other data stored on the blockchain.
Block Header: The Block header is a critical part of a block, it includes the previous block’s hash, timestamp, Merkle root, nonce, difficulty target, version, and potentially other metadata. This information is crucial for ensuring the consistency, security, and proper functioning of the blockchain.
Block Height: This signifies the position or sequence of a specific block within the blockchain. If a block is the 6th one in the blockchain, its block height would be 6. It’s a simple yet important concept that helps establish the chronological order of blocks within the blockchain, allowing nodes and users to track and refer to specific blocks in the chain.
Block Interval: This refers to the amount of time it takes to generate a new block on the blockchain. It’s the time interval between the creation of consecutive blocks in a blockchain network. The block interval is a crucial parameter that directly influences the rate at which new transactions can be confirmed and added to the blockchain.
Block Reward: The miner who successfully adds the block to the blockchain receives a predetermined amount of newly minted cryptocurrency. the miner may also collect transaction fees paid by users for including their transactions in the block.
Block Validation: Once a miner solves the puzzle, other nodes in the network verify the solution. This involves checking whether the new block’s hash meets certain criteria, such as being below a target value. This validation ensures the integrity of the blockchain.
Bitcoin: Bitcoin is a decentralized digital currency and a groundbreaking technology that introduced the concept of a blockchain and cryptocurrencies to the world. It was created by an individual or group of individuals called Satoshi Nakamoto and was released as open-source software in 2009. Its primary purpose is to serve as a digital alternative to traditional currencies, allowing users to transact and store value in a decentralized and secure manner.
CEX(Centalized Exchange): This refers to a type of cryptocurrency exchange that operates with a centralized authority. While some CEXs might utilize certain blockchain technologies for specific features, such as token deposits and withdrawals, these operations, are usually not executed directly on a blockchain. They use their own centralized servers and databases to facilitate trading activities. Examples are Coinbase, Binance, etc.
Closed-source: This refers to software or technology for which the source code is not publicly available. In closed-source software, the underlying programming code is kept hidden and controlled by the company or individual that develops and owns the software. Users of closed-source software typically receive only the compiled executable version of the software, without access to the internal code.
Coins: Coins and Tokens can be used interchangeably but the major difference between them is that coins are the main currency of a blockchain, examples of coins are Bitcoin, Ethereum, Ripple, etc.
Cold Wallet: also known as a cold storage wallet, refers to a type of cryptocurrency wallet that is kept offline and disconnected from the internet. This deliberate isolation from online networks makes it highly secure against hacking and unauthorized access. They are typically used for long-term storage of cryptocurrencies, providing a strong level of protection against cyber threats.
Consensus: To record a transaction on the blockchain ledger, it is important for the majority of the members to validate it and be on the same page. This entire process of maintaining a “network-wide agreement” is called consensus. Examples of consensus protocols include Proof of Work (PoW), Proof of Stake (PoS), and more.
Cross-Chain Transactions: These are transactions that involve assets or data from multiple blockchains. Cross-chain solutions use techniques like atomic swaps or hash time-locked contracts to ensure that transactions occur simultaneously on both chains.
Cryptocurrency: This is one of the prominent use cases of blockchain technology. It refers to a type of decentralized digital asset or virtual currency that utilizes cryptographic techniques for secure transactions, control of new unit creation, and verification of asset transfers. Cryptocurrencies are often designed to work as mediums of exchange, utilizing blockchain technology to ensure secure and transparent transactions
DAO(Decentralized Autonomous Organisation): This is similar to a real-world Organization. They are like a team of computer programs and rules that run and work together on a blockchain, which is like a super secure digital ledger.
dApp(decentralized application): A dApp is a software application that operates on a decentralized network, typically a blockchain, utilizing smart contracts or other decentralized technologies. A dApp often includes a frontend interface that enables users to interact with the underlying blockchain or smart contracts, allowing for various functionalities such as voting, financial transactions, data storage, and more.
DeFi (Decentralized Finance): DeFi contains a wide range of applications, including DEXs, lending platforms, stablecoins, yield farming, liquidity provision, and more. Its growth has led to a significant increase in the adoption of blockchain technology for financial purposes, with the goal of creating a more open, transparent, and inclusive financial system.
Decentralization: It is an environment no single entity or individual has complete control or authority over the entire network. Instead, authority and decision-making are distributed among the participants or nodes within the network. This distribution of control ensures that no single point of failure exists, enhancing the security and resilience of the system. Each member or node in a decentralized network typically has an equal level of authority, which contributes to the overall balance and integrity of the network.
Decentralized Identity: This refers to an approach where individuals have full control over their personal data. It empowers users to securely manage, share, and verify their identity information without relying on centralized authorities. This concept uses blockchain technology, to ensure privacy, security, and user ownership of identity data. Decentralized identity aims to create a more secure, user-centric, and interoperable digital identity ecosystem.
Decryption: It’s the opposite of encryption and runs on the receiver’s end. An encrypted message must be changed to its original form so the receiver can understand it and for that purpose, the decryption algorithm validates the receiver to determine whether he is the rightful reader or not and then shows the message.
Delegators: Some proof-of-stake networks allow users to delegate their staked tokens to validators. Delegators contribute to the consensus mechanism by choosing a validator they trust and staking their tokens with that validator. The validator then uses the combined staked tokens to increase their chances of being selected to propose blocks.
DEX(Decentralized Exchange): This refers to a type of decentralized cryptocurrency exchange that operates on a Blockchain Network. allowing users to trade directly with one another without the need for an intermediary. Examples are Uniswap, PancakeSwap, SushiSwap, etc.
Difficulty Adjustment: The difficulty of the mathematical puzzle adjusts over time to maintain a consistent block creation rate, usually around 10 minutes in the case of Bitcoin. If more miners join the network, the difficulty increases; if miners leave, it decreases.
Distributed Ledger: It is a ledger that is maintained by many nodes in a decentralized network this ledger is used to record and manage transactions in a way that ensures transparency, security, and immutability and organizes them in chronological order. this ledger can be of two types, Permissioned and permissionless. based on who has access to view the ledger.
Double Spending: It is an attack executed by one of the members of the blockchain network, and the aim is to send two similar transactions to the nodes and convince the network that at least one of them is valid. However, in reality, both transactions conflict or somewhat contradict each other logically.
EVM(Ethereum Virtual Machine): This is a virtual engine that executes smart contracts code within Ethereum’s network allowing dApps to run on the Ethereum blockchain. This enables developers to create applications that can execute code and perform functions without the need for a centralized authority.
EWASM(Ethereum WebAssembly): It’s a project that brings the Wasm technology to the Ethereum blockchain with the aim of replacing EVM with WebAssembly. By integrating WebAssembly into Ethereum, developers could potentially write smart contracts in a wider range of languages and enjoy better execution speed.
Encryption: This is the process of a Blockchain network encoding its data to make it meaningless and unreadable for anyone outside the network. For instance, if you send a message to Alice on the network as plain text, it will immediately be changed into ciphertext.
Ethereum: Ethereum is a decentralized and open-source blockchain platform that serves as a foundation for developers to create and deploy smart contracts and dApps. Ethereum introduced the concept of a programmable blockchain, allowing developers to write code that automates complex processes, and it enabled the growth of a wide range of decentralized applications, spanning from finance and gaming to supply chain management and more.
Flash Loans: They are a unique and innovative concept in the world of DeFi that allows users to borrow a specific amount of cryptocurrency for a very short period, often within a single transaction block on a blockchain. Unlike traditional loans, flash loans don’t require collateral upfront. Instead, the borrowed funds and any potential profits from their use must be returned within the same transaction. If the borrower fails to repay the loan within the same block, the entire transaction is reversed.
Fork: This is the creation of a new blockchain network that branches off from an existing one. It can occur due to differences in consensus, rules, or features within the blockchain community. Forks can be categorized as hard forks or soft forks.
Gas Limit: This refers to the maximum amount of computational effort that a transaction or smart contract execution is allowed to consume on a blockchain platform. In other words, it represents the upper bound on the computational resources that a transaction can utilize.
Genesis Block: The first block in a blockchain, known as the Genesis Block, serves as the foundation of the entire network. It’s distinct because it doesn’t refer to a previous block. Developers craft it manually during network launch, imbuing it with setup details and operational rules. Beyond its technical role, the Genesis Block often bears a special message or symbolic meaning, signifying the start of the blockchain journey.
Governance Tokens: They are a type of cryptocurrency token that is issued by DAOs or blockchain protocols to enable holders to participate in the decision-making processes of the network. These tokens grant holders the right to propose and vote on changes, upgrades, and various parameters related to the network’s operation and development.
Hard Fork: This involves significant changes to the protocol that are not backward-compatible with the previous version. Nodes that upgrade follow the new protocol, while nodes that don’t remain on the old protocol. This can result in the creation of two separate chains with different transaction histories.
Hash: A hash refers to the unique output generated by a hash function. In the context of blockchain, hashes play a crucial role in connecting blocks within a blockchain.
Hash Collision: It refers to an event where two inputs fed to a hashing function deliver the same output. It should be noted that it’s almost impossible to create a hash collision on purpose as it’s entirely random and the output of a hash function is never known.
Hash Function: A hash function is a mathematical algorithm used to calculate the hash of a block’s header. It takes a combination of specific inputs, often referred to as a “message,” and then transforms this input into a standardized string of characters with a fixed size.
Hashrate: It’s the rate at which a machine or an algorithm executes a hashing function per second.
Hot Wallet: This refers to a type of cryptocurrency wallet that is connected to the internet and actively used for transactions and trading. they are potentially vulnerable to hacking, malware attacks, and other online threats. As a result, they are generally recommended for storing smaller amounts of cryptocurrencies that are needed for day-to-day activities, Examples are Trust Wallet, Exodus, MyEtherWallet, and more.
Hyperledger: This is an open-source collaborative effort, hosted by the Linux Foundation, that aims to advance and develop blockchain technologies and distributed ledger systems for various industries and use cases. It provides a platform for developers and organizations to collaborate on building enterprise-grade blockchain solutions.
Hyperledger Fabric: This is one of the prominent blockchain frameworks hosted by the Hyperledger project. It’s an open-source enterprise-grade distributed ledger platform designed to build, deploy, and operate permissioned blockchain networks. Fabric offers flexibility, modularity, and features that make it suitable for various business use cases.
Immutable: Once the data is published on the chain and a block is created for the data, it cannot be changed, whatsoever. Not even the developer who created the system can change it and this property is known as immutability.
Interoperability: This is the ability of different blockchain networks or systems to communicate, interact, and seamlessly share information and data with each other. It’s the concept of enabling compatibility and collaboration between various blockchains, allowing them to work together effectively despite differences in their protocols, consensus mechanisms, and designs.
Layer 1 — Base Layer: This is the foundational layer of a blockchain network. It includes the main blockchain protocol and its core features. This layer is responsible for maintaining the consensus mechanism, validating transactions, and storing the primary ledger. Examples of Layer 1 blockchains include Bitcoin and Ethereum.
Layer 2 — Scaling Solutions: L2 solutions are built on top of L1 to address scalability issues and improve the network’s throughput. They can enhance the scalability and performance of a blockchain network while maintaining the security and decentralization benefits of the base layer.
Liquidity Pools: They are a fundamental concept in DeFi and blockchain platforms that enable users to contribute their assets to facilitate trading, lending, and other financial activities without relying on traditional financial intermediaries. A liquidity pool is essentially a smart contract that holds a certain amount of multiple tokens in reserve.
Mainnet: This refers to the primary and fully functional blockchain network of a cryptocurrency or blockchain project. It’s the live version of the blockchain where real transactions occur, and it’s open to the public for actual usage. It stands in contrast to testnets, which are used for development and testing purposes
Mempool: This serves as a crucial component within a blockchain network where pending transactions are temporarily stored. These transactions wait in the mempool until they are validated and confirmed by miners or validators and subsequently added to a new block on the blockchain.
Merkle Tree: This is a clever way of arranging data in a tree-like structure. This structure allows for quick and efficient checking of whether a specific piece of information, like a transaction, is part of a larger set of data without needing to examine every detail. This is important for confirming the integrity of transactions on a blockchain in a fast and secure manner.
Middleware Platforms: These platforms provide a common layer that sits between different blockchains, acting as a bridge to facilitate communication and data sharing. These platforms often include standardized APIs and protocols. Examples are Cosmos, Polkadot, and more.
Mining: This involves the process of validating and adding new transactions to a blockchain by solving complex mathematical puzzles. Miners compete to create a new block that includes a set of transactions from the mempool. This block is then added to the blockchain after being validated through the consensus mechanism of the network, often utilizing proof-of-work (PoW) or other consensus algorithms.
Multi-Signature: This is a security feature that requires multiple authorized parties to provide their approval before a transaction or an action is executed. It adds an extra layer of protection and control, as it ensures that no single individual has complete authority over the process.
Network Protocols: These protocols facilitate communication between nodes in a blockchain network. They define how data is transmitted, routed, and validated across the network. Network protocols help maintain a reliable and efficient peer-to-peer communication system.
Nodes or Peers: This is a term we use to refer to a participant in a decentralized blockchain network, they maintain a copy of the blockchain and actively contribute to the network’s operations. Nodes work collectively to validate transactions, secure the network, and ensure the integrity of the blockchain.
Nonce: This is a special number used in the process of mining new blocks. Miners change the nonce value in their mining efforts, hoping to find a specific value that, when combined with other block data, produces a hash with certain properties. This hash must meet specific criteria to be considered valid.
Non-Fungible Tokens(NFTs): NFTs are a type of digital asset that represents ownership of a unique item, piece of content, or digital collectible on a blockchain. Unlike cryptocurrencies which are fungible and can be exchanged on a one-to-one basis, NFTs are indivisible and cannot be exchanged on a like-for-like basis due to their unique characteristics. Examples are Cryptokitties, Decentraland, CryptoPunks, etc.
Off-chain Transactions: These are transactions conducted outside the main blockchain to enhance speed and reduce fees, as they don’t require the same level of validation and consensus as on-chain transactions, They enable faster processing by sidestepping the full validation process and later settling on the main chain, preserving security.
On-chain Transactions: These are transactions that occur directly on the blockchain. These transactions are fully recorded and validated on the blockchain network, ensuring their security and immutability.
Open-source: This refers to software or technology that is made available with its source code accessible to the public. In other words, the underlying programming code of open-source software is openly shared and can be viewed, modified, and distributed by anyone.
Oracle: This refers to a specialized service or mechanism that acts as a bridge between the blockchain and the outside world, providing smart contracts with access to real-world data or events that are not directly available on the blockchain. Oracles enable blockchain applications, particularly smart contracts, to interact with external information, making them more versatile and powerful.
Peer-to-Peer(P2P): It signifies interaction that happens between peers or nodes in a network, P2P allows a node to communicate directly with other nodes, sharing resources, information, or services without the need for a central server.
Permissioned Blockchains: These require an invitation or permission to join the network, They are typically used in private and business settings and are tailored for certain use cases, power is restricted to a small group of validators who make most of the network decisions.
Permissionless Blockchains: They are open and anyone can have a hand in using and running them. you can even participate in their consensus mechanism given that you meet specific requirements. Bitcoin, Ethereum, and BNB Chain are examples of Permissionless Blockchains, which are typically transparent and decentralized.
Plasma: This is a framework designed to enhance the scalability and speed of blockchain networks, particularly Ethereum, The main idea behind Plasma is to reduce the burden on the main blockchain by moving a significant portion of transactions to the child chains. These child chains function independently but are still connected to the main blockchain. Each child chain can handle its own set of transactions and smart contracts, enabling faster and more efficient processing.
Private Blockchains: This is a Blockchain where the network is not generally available to the public and is entirely operated by a few individuals or an organization. This means only network members can read and write on the ledger and the transactions are not public and you can only view them if you have access.
Private Key: A private key is a cryptographic code that serves as a crucial element in asymmetric encryption systems like those used in cryptocurrencies. Your private key is used to sign transactions and messages, proving your ownership of certain assets or actions on the blockchain. It’s a highly sensitive piece of information that should be kept secret. Access to your private key provides control over the associated cryptocurrency holdings, allowing you to send funds and execute various actions.
Proof-of-Authority: This is a consensus algorithm used in blockchain networks to validate and secure transactions. Unlike traditional consensus algorithms like PoW or PoS, PoA does not rely on computational power or ownership of tokens to achieve consensus. Instead, it grants the right to validate transactions to a set of authorized nodes or validators based on their reputation or identity.
Proof-of-Stake: A consensus mechanism in cryptocurrencies for validating transactions and creating new blocks. Validators are chosen based on the tokens they “stake” as collateral. Validators’ reasons to act honestly are tied to their staked tokens, making malicious behavior risky.
Proof-of-work: It’s a mechanism that slows down the creation of a new block, in the case of Bitcoin it takes about 10 minutes to calculate the required proof-of-work and add a new block to the chain. this concept makes it hard to tamper with the blocks because if you tamper with one block you’ll need to calculate all the proof-of-work for the following blocks.
Provide Liquidity: This term refers to depositing funds into a liquidity pool on a decentralized platform, often a DEX or a lending protocol. However, the compensation you receive isn’t necessarily at the end; rather, you earn compensation based on the trading fees or interest generated by the deposited funds.
Public Blockchains: A public blockchain is a distributed digital ledger accessible to the general public over the Internet. It is characterized by transparency and openness, enabling anyone to view, read, or write data on the blockchain. While typically associated with permissionless participation, a public blockchain can also be permissioned, incorporating controlled access to certain actions or participants, making it a versatile platform for various use cases. Hyperledger Fabric is an example of a permissioned Public Blockchain.
Public Key: A public key is a cryptographic key that corresponds to your private key in an asymmetric encryption system. It’s used to generate a unique address on a network, often referred to as your “public address.” Anyone with your public address can send you money or transactions, but they can’t derive your private key from the public key. This is a fundamental aspect of the security provided by asymmetric encryption.
Simple Agreement for Future Tokens (SAFTs): This mechanism was designed particularly for investors which allows them to buy tokens for a project that is yet to be launched. The amount that the investor receives is in the percentage of total tokens, rather than the company’s equity.
Scalability: This refers to the capability of a system to handle increased demand, usage, or growth smoothly and efficiently. As the number of users, transactions, or data increases, a scalable system should be able to accommodate this growth without compromising its performance or responsiveness.
Security Protocols: These protocols are responsible for ensuring the security, integrity, and privacy of data on the blockchain. They include encryption, authentication, and authorization mechanisms that safeguard sensitive information from unauthorized access.
Security Tokens: Security tokens are a type of digital asset that represents ownership or rights in an underlying traditional financial asset, such as stocks, bonds, real estate, or other investment instruments. Examples are tZERO(TZROP), SPICE VC (SPICE), etc.
Sharding: This is a technique used in blockchain technology to improve scalability and network performance. It involves dividing the entire blockchain network into smaller segments called “shards,” each of which can process its own transactions and smart contracts independently. This allows for greater throughput and faster transaction confirmation times, as multiple shards can work simultaneously.
Slashing: Slashing is a mechanism designed to discourage validators from engaging in harmful or fraudulent behavior. When a validator is found to have acted against the network’s interests, a portion of their staked tokens can be “slashed.” This penalty serves as a deterrent to maintain the security and integrity of the network by discouraging validators from attempting to undermine the consensus process.
Smart Contracts: A smart contract is a self-executing program stored on a blockchain. It contains code that defines the rules and conditions for a specific agreement or transaction. Smart contracts are distributed across all nodes of the blockchain network and are immutable once deployed, meaning their code cannot be altered once they are set in motion.
Smart Contract Auditing: This is the process of reviewing and assessing the code and functionality of a smart contract to identify vulnerabilities, bugs, and security risks. Since smart contracts handle sensitive operations and valuable assets, it’s critical to ensure they are secure and free from vulnerabilities that could be exploited by malicious actors.
Soft Fork: This involves backward-compatible changes to the protocol. New rules are introduced, but nodes following the old protocol can still validate transactions. However, if the majority of the network adopts the new rules, it can lead to a consensus change.
Solidity: This is a programming language that is widely used in the blockchain industry for writing smart contracts on platforms like Ethereum. Its syntax is designed to resemble JavaScript, making it more accessible to developers who are already familiar with web development languages. Solidity enables developers to define the rules and behaviors of smart contracts, allowing them to create decentralized applications and automated agreements on blockchain platforms.
Staking: Staking is the act of holding and locking a certain amount of the network’s native tokens as collateral. While stakers may include validators, not all stakers necessarily validate transactions or propose blocks. Staking can also be a way to support the network’s security and participate in the consensus mechanism indirectly.
Staking Pools: also known as validator pools or node pools, are a concept in blockchain and cryptocurrency networks that allow individual users to combine their resources, usually tokens, for the purpose of participating in the network’s PoS consensus mechanism, Staking pools are particularly relevant in PoS-based networks.
State Channels: They are a scaling solution in blockchain technology that allows off-chain execution of transactions while still ensuring the security and trustworthiness of the blockchain. They enable participants to conduct a series of transactions without having to directly interact with the blockchain for each transaction, thereby reducing congestion and increasing the network’s throughput.
Testnet: This is a separate and isolated blockchain network specifically designed for testing and development purposes. It replicates the functionalities of a real blockchain but operates with tokens that have no real-world value, created to allow developers and users to experiment with new features, smart contracts, applications, and upgrades without risking real assets or transactions.
Testnet Tokens: These are tokens used on blockchain testnets. Testnet tokens have no real-world value and are meant solely for testing purposes. They allow developers to simulate transactions and interactions on a blockchain network without any financial implications.
Throughput: This refers to the rate at which data or transactions can be processed and transferred within a given time frame. throughput often indicates how many transactions the network can process per second (TPS)
Token Standards: define essential characteristics and behaviors of tokens, including how they can be created, transferred, managed, and interacted with by smart contracts and dApps. Standards ensure that tokens are interoperable and compatible across different blockchain networks, enabling seamless exchange and utilization.
Tokenization: Tokenization is the process of converting real-world assets, such as physical assets, financial instruments, or rights, into digital tokens that are recorded on a blockchain or another digital ledger. These tokens can represent ownership, value, or access to the underlying assets, and they can be traded, transferred, or utilized within a digital ecosystem.
Tokens: These are assets that are digitally transferable between two people. they are used for certain cases in the blockchain, Types of tokens are Utility Tokens, Security Tokens, Non-Fungible Tokens, etc. Tokens are bought using coins.
Transaction: This refers to an action that involves the exchange of assets, tokens, or data between two accounts on the blockchain network. Transactions can encompass various actions, such as transferring cryptocurrency from one wallet to another, executing smart contracts, recording ownership changes, and more.
Transaction Data: This contains the various pieces of information associated with a specific transaction on a blockchain. Including the sender’s address, the amount sent, the recipient’s address, the gas fee, timestamp, and transaction hash, are essential components that provide a comprehensive record of the transaction. This data is stored on the blockchain and contributes to the transparency and traceability of transactions within the network.
Transaction/Gas Fee: This is the cost required to execute a transaction on the network. these fees cover the computational resources, network bandwidth, and security measures needed to process and validate transactions.
Utility Tokens: They are designed to have a specific purpose within a particular ecosystem or platform. They provide access to certain features, services, or benefits provided by that ecosystem. examples are Binance Coin (BNB), Filecoin(FIL), Chainlink (LINK), etc.
Users: Users are individuals or entities who interact with a blockchain network for specific purposes, such as sending transactions, accessing dApps, or storing data. Users typically interact with the network as clients, using wallets, browsers, or other software to access and utilize blockchain functionalities.
Validators: They are participants in a blockchain network who typically hold and lock a certain amount of cryptocurrency as collateral. They play a key role in maintaining the integrity of the network by validating transactions and creating new blocks. Validators are often selected based on their stake in the network. This stake serves as an incentive for validators to act honestly and responsibly, as they have something to lose if they behave maliciously or inaccurately.
Wallets: A wallet in the context of crypto and blockchain is a digital holder used to manage your account in a network a wallet is also used to manage, store, and access private keys, public keys, etc. A wallet also provides an interface that allows the user to communicate with the network and sign transactions.
Wasm(WebAssembly): This is a binary instruction format that’s designed to be fast, efficient, and portable across different platforms. It’s often used to improve the performance of web applications. WebAssembly is considered to be more efficient in terms of speed and resource consumption compared to Ethereum’s current EVM.
Web3: This is a term that signifies the evolution of the Internet into a decentralized and user-centric ecosystem. It envisions a new paradigm where individuals have greater control over their digital experiences, data, and interactions. Unlike the current Web2, which relies heavily on centralized platforms and intermediaries, Web3 is built on blockchain and other decentralized technologies.
Whitepaper: This is a comprehensive and formal document that outlines the concept, technical details, objectives, and potential implementations of a blockchain and cryptocurrency, a whitepaper serves as a detailed introduction to a new cryptocurrency, blockchain platform, or dApp.
Wrapped Tokens: A wrapped token, often referred to as a wrapped version of an underlying asset, is a digital representation of a real-world asset or cryptocurrency that has been issued on a blockchain using a specific token standard. The concept of wrapped tokens is commonly used to bring assets from one blockchain to another, facilitating cross-chain interoperability and expanding the utility of the underlying asset.
Yield Farming: also known as liquidity mining, is a DeFi practice that involves earning rewards by providing liquidity to various cryptocurrency protocols and platforms. It’s a way for cryptocurrency holders to put their assets to work and generate returns in the form of additional tokens or interest.
Zero-Knowledge Proofs (ZKPs): They are a cryptographic method that allows one party (the prover) to prove to another party (the verifier) that a certain statement is true without revealing any specific information about the statement itself. In simpler terms, ZKPs enable someone to prove they possess certain knowledge without disclosing what that knowledge is.

Simplifying and Exploring Several Technical Terms of the Interchain.

Mitchyugan — Sat, 13 Jan 2024 20:42:13 +0000

Blockchain technology is ever-evolving, and within this landscape, the Interchain ecosystem has emerged as a groundbreaking concept. It promises to revolutionize blockchain interoperability, enabling seamless communication and data transfer between different blockchains.

Understanding the Technical Terms

In the realm of the Interchain, several technical terms are fundamental to grasp the underlying concepts. Let’s delve into these technical terms to gain a clearer understanding:

Light clients: They are like the “lite” version of using a blockchain. Instead of downloading and checking every single thing that happens on a blockchain (which can be really heavy and slow), light clients take a shortcut. They only grab the important bits of information they need, making it much quicker and easier to use a blockchain.

These light clients are super useful because they help different blockchains talk to each other safely. It’s kind of like having a translator at a global meeting — they make sure everyone understands each other. So, light clients help with things like moving stuff from one blockchain to another, getting data, and other things, all while making sure everything is honest and secure.

Remote procedure call (RPC): RPC is similar to a telecommunications system for computer programs. Consider it as establishing a phone call between two computers, where each computer can request services or execute functions on the other, much like how you might dial a friend’s number to ask for assistance.

Here’s how it works in technical terms: Through RPC, one computer acts as the caller and asks the other computer, the receiver, to perform specific tasks or functions. similar to the complexity of phone line connections, You don’t have to worry about all the complex stuff like how the message gets there; RPC handles that for you.

This is really handy because it means different parts of a program or even different programs on different computers can chat and help each other out, like teamwork between neighbors. RPC is like the bridge that connects them, making it all super smooth and easy.

Protocol Buffers(Protobuf): Protobuf is an adaptable and efficient data conversion method that allows developers to define structured message formats for their applications, promoting interoperability and efficient data exchange between different components and services.

When developing with CosmosSDK, Developers define the data structures and messages for their custom modules and applications in a Protobuf file.

Protobuf is a language-agnostic nature. Once you define a message format in Protobuf, you can generate code in various programming languages to serialize, deserialize, and work with messages in that format.

gRPC(Google Remote procedure call): This is a modern open-source high-performance RPC framework that can run in any environment and supports various programming languages. This communication protocol streamlines interactions between blockchain components and services, ensuring fast and efficient RPCs.

gRPC uses HTTP2 as its transport protocol and Protobuf to encode data. gRPCs have a single specification, which makes all gRPC implementations consistent.

gRPC-web: This is a JavaScript-based implementation of gRPC designed for web browsers. This technology allows web applications to efficiently communicate with gRPC-based services, taking advantage of gRPC’s performance benefits and features while working within the constraints of web browser environments.

Here’s how it works: Normally, web browsers have a tough time talking to certain computer systems (like gRPC) because they use different languages. But gRPC-web acts as the translator. It helps your web browser talk to these systems using a clever trick called a “proxy.”

gRPC-gateway: Think of the gRPC gateway as a special bridge between two different talking styles for computers: gRPC and REST.

Here’s how it works: Some computer programs like talking in a fancy language called gRPC, while others prefer a simpler language called REST. But sometimes, they need to understand each other. That’s where the gRPC gateway comes in. It’s like a translator.

So, gRPC-gateway creates a special server that knows both languages. When a program speaks gRPC, this server can understand it. But when another program speaks REST, the server listens, figures out what’s being said, and translates it into gRPC language.

This is really handy because it means different parts of your program, or even different programs, can understand and work with each other, no matter which language they prefer. It’s like having a multilingual guide for your computer programs. For example, if your web browser doesn’t speak gRPC, you can still use the Cosmos SDK because it provides a way to talk to it in the language your browser understands, thanks to the gRPC gateway.

Amino: This serves as a crucial encoding specification within the Cosmos SDK. Picture it as a method for packaging, unpacking, and encoding data. It’s similar to skillfully arranging items in boxes, labeling them clearly, and ensuring everything inside is carefully organized to simplify seamless communication with computers.

Here’s how it operates: Amino excels at handling various forms of information, primarily focusing on data encoding. It’s similar to having specialized containers capable of accommodating various items. Amino possesses the knowledge to package these items efficiently, making sure they can be easily understood by computers.

In the realm of Cosmos SDK, Amino is similar to a trusted protocol for wrapping, structuring, and encoding data bundles. Imagine it as the process of sending messages between computers on the blockchain in carefully organized packages with distinct labels. This guarantees that data circulates without any misunderstandings or hiccups. Amino excels particularly in simplifying intricate data into a format that computers can readily interpret.

Useful Link & Resources

Light Clients in Tendermint Consensus
gRPC, REST, and CometBFT Endpoints
Protocol Buffers Official documentation
gRPC documentation
gRPC-Gateway

Conclusion

We have gone about several technical terms in the interchain ecosystem, if you are interested in becoming a cosmos developer There is an Academy Hosted by the interchain themselves Apply Here.

Feel free to reach out to me on Twitter if you have any questions. Additionally, you can join the Cosmos Discord and Cudos Discord community.

Happy Building!

Exploring Fundamental Concepts in the Cosmos Ecosystem.

Mitchyugan — Tue, 09 Jan 2024 20:52:26 +0000

Embarking on a journey through this article, we will delve into the fundamental concepts that define the Cosmos ecosystem. aiming to provide clear and concise explanations for these concepts, offering you a comprehensive understanding of the complicated workings that power the Cosmos network.

Interchain: The Interchain which can also be referred to as “Cosmos” or the “Internet of Blockchain” is a network of independent and interoperable blockchains, These blockchains are all built using a technology called Tendermint, which ensures their reliability.
The Interchain Ecosystem — is a galaxy of wallets, services, tokens, and dApps.

Tendermint: Tendermint is a consensus algorithm with Byzantine Fault-Tolerance (BFT) that serves as both a networking and consensus layer. Its primary role is to ensure agreement among multiple machines in a distributed network, enabling applications to be replicated and synchronized across numerous machines. This robust consensus mechanism enhances the security and reliability of blockchain networks.

Byzantine Fault Tolerance (BFT): BFT is a critical feature that empowers a blockchain network to operate reliably even in the presence of participants who may be behaving maliciously or experiencing failures. This resilience ensures consistent and accurate functioning, preventing disruptions and maintaining the integrity of the network’s operations.

Interchain Foundation (ICF): The Interchain Foundation (ICF) is a Swiss non-profit organization that initiated a fundraising effort in 2017 to provide financial support for the development of open-source projects within the Interchain network. This initiative has continued to the present day, contributing to the growth and advancement of the ecosystem.

Ignite CLI: Ignite CLI is a user-friendly command-line interface tool designed for the creation of application-specific blockchains. It is built on top of Tendermint using the Cosmos SDK. This CLI tool equips developers with comprehensive capabilities to construct, test, and launch their own blockchain networks.

Interoperability: This is a concept that ensures multiple systems or components work together and communicate seamlessly, allowing them to exchange and understand data in a consistent and standardized manner, This ensures that different systems(often from various sources or designed for different purposes) can cooperate effectively without misunderstandings or conflicts.

IBC(Inter Blockchain Communication): This is a Concept that facilitates seamless communication between blockchains developed within the Cosmos ecosystem, This includes the exchange of values, token transfers, and various forms of communication between chains, all without the need to involve exchanges or make compromises regarding the sovereignty of each chain. When a blockchain is compatible with IBC, it becomes interoperable with other blockchains. The IBC is not limited to Tendermint-based chains alone.

Zones: Zones are distinct categories of blockchains responsible for performing various essential tasks within the network. They handle tasks such as authenticating accounts and transactions, generating and distributing tokens, and executing modifications to the blockchain.

Hubs: Hubs are specialized components designed to establish connections with various zones. When a zone is linked to a hub via an Inter Blockchain Communication (IBC) connection, it gains direct access to other zones linked to the same hub. This innovative architecture reduces the need for numerous direct connections between individual chains, enhancing interoperability. Think of a hub as a zone that acts as a central point, enabling multiple zones to interact efficiently.

CosmosHub: CosmosHub is the first among many Blockchains in the Cosmos ecosystem. It is a public PoS blockchain with a native token, ATOM. It’s not just an isolated chain; it’s a hub of connectivity. Visualize CosmosHub as a sophisticated and intelligent router, much like the central hub in a complex communication network. It has the remarkable ability to seamlessly bridge together various blockchains within the Cosmos Network.

Atom: Atom is the native token of the CosmosHub Blockchain, it is used to secure the network and pay for transaction fees and it has also funded the development of the Interchain Stack and other projects on the broader ecosystem.

Staking Atom: Staking ATOM involves temporarily locking your Atom tokens to enhance the security of the Cosmos Hub. In return for staking your ATOM, you become eligible for rewards in the form of newly minted ATOM tokens and a portion of the transaction fees collected by the blockchain. This rewards you for contributing to the network’s stability and functionality. By staking ATOM, you can vote in Cosmos Hub governance decisions.

Governance: Governance contains the process of decision-making and proposing changes within the Cosmos ecosystem. Validators and token holders play active roles in participating and contributing to governance proposals.

Cosmos SDK: It’s a flexible framework that empowers developers to craft their own distinctive blockchains utilizing the Tendermint consensus engine. With this toolkit, developers have the ability to customize various components, including consensus mechanisms and governance protocols. This framework serves as a robust foundation for building secure, scalable, and interconnected blockchains, enabled by IBC.

CosmJS: CosmJS is a JavaScript library tailored to promote seamless interaction with Cosmos blockchains. It supplies developers with a comprehensive set of tools and utilities for effortlessly interfacing with these blockchains and constructing frontend applications that seamlessly integrate with them. CosmJS simplifies complex tasks such as establishing connections, managing transactions, querying data, and more.

Cosmwasm: CosmWasm serves as an advanced smart contracting platform tailored for the Cosmos ecosystem, It offers a framework for writing and executing multi-chain smart contracts on a Cosmos blockchain through the utilization of WebAssembly.Containing a variety of tools and libraries, CosmWasm empowers developers to effortlessly create, deploy, and manage smart contracts. Simply put, it’s the Cosmos (Cosm) way of using WebAssembly (Wasm).

Wasm (WebAssembly): This is a technology that allows you to run code at near-native speed in web browsers and other environments. It’s like a super-fast way to run programs on the internet. In the context of CosmWasm. WebAssembly is used to execute smart contracts on the blockchain, allowing for swift and secure execution of contract logic.

Smart Contracts: They are self-executing agreements representing contract terms directly within codes. They automatically enforce and execute predefined conditions when specific criteria are met. Once a smart contract is deployed on a blockchain, its code and rules become immutable — they cannot be altered or modified. This immutability ensures the integrity and reliability of the contract’s execution

Stay in Touch

Cosmos Website: https://cosmos.network/
ICF Twitter: https://twitter.com/interchain_io
Learn Cosmos: https://tutorials.cosmos.network/
Cosmos Twitter: https://twitter.com/cosmos

Modifying the create-cosmos-app Frontend dApp to send $Cudos token to Yourself.

Mitchyugan — Tue, 09 Jan 2024 20:20:47 +0000

In this tutorial, we will be creating a Send Token dApp using the create-cosmos-app Send Token example, will modify the dApp to enable the sending of $cudos tokens to yourself, and we'll also learn how to verify the success of the transaction on Cudos Explorer. and also add Cudos mainnet and testnet Chain to Keplr.

What you will get from this Article

How to use the create-cosmos-app send-token template
How to add Cudos chain and testnet to Keplr
How to modify the dApp to send $cudos tokens to yourself

Prerequisites

You should have create-cosmos-app installed globally
Keplr wallet installed
Node.js and Yarn installed
Vscode installed, If you don't download it from here

You can find how to install all of these in my previous article on Building a Cosmos App Frontend with create-cosmos-app and Keplr Wallet Integration

Creating the send token Frontend

When using the create-cosmos-app tooling we have several options to scaffold a dApp using a template example.
Some examples include:

Send tokens example: Creates a frontend that allows you to send tokens.
Stake Tokens: Creates a frontend that enables you to Stake tokens
CosmWasm: Creates a frontend that interacts with the Cosmwasm module e.t.c

But in this tutorial, we are going to use the Send tokens example

Let's head over to the create-cosmos-app GitHub repo: https://github.com/cosmology-tech/create-cosmos-app/

Scroll down to the “Examples” section and locate the “Send Tokens” example, Copy the command below the “Send Token” text and paste it into your terminal., or you can copy it below:
cca --name send-example --example --template send-tokens

You can also customize the name of your dApp by changing send-example in the command to your desired name.

Paste the command where you want to create your dApp

After the project is created, navigate to the project directory in the terminal: cd ./<the name of your project>
Run yarn && yarn dev to start the server.

If everything went fine, you should see this Interface running on http://localhost:3000/:

Before you click connect wallet, remember the dApp is connected to the Cosmos Hub chain by default and we can only perform transactions on Cosmos Hub unless we switch chains, and we need to connect to Cudos Chain if we want to send $cudos tokens.

But in this tutorial, we will be using Cudos testnet because we want to perform transactions on the testnet, and it’s also a good place to practice and test out building your dApps first

Adding Cudos Testnet to Keplr

We have to sign a transaction through the Cudos Testnet Dashboard before we can add it to Keplr. Click on “connect keplr wallet” enter your password and click “Approve”

We have successfully signed a transaction on Cudos testnet.
You can also follow the same process when you want to add Cudos Chain to Keplr but go to Cudos Dashboard instead of the Testnet Dashboard.

After adding Cudos Mainnet along with the Testnet successfully we can now open Keplr and click on the menu Icon by the top left and click “Manage chain visibility”

Scroll down or search for CudosNetwork and CudosTestnet select them and click “save”:

Open Keplr and scroll down we can see both Cudos Mainnet and testnet

Congratulations you have successfully added Cudos to keplr

Modifying dApp to send $cudos token to yourself

Let's open our project in Vscode!

Let's connect to Cudos testnet
Navigate to ./config/default.ts and change the value of chainName from cosmoshub _to _cudostestnet, and the asset.base from uatom(the smaller version of $atom) to acudos (the smaller version of $cudos)

Go back to your browser hoping you are still running your project in the terminal and reload, now our project has connected to Cudos Testnet.
Click “Connect wallet” select Keplr and click “Approve”

If you have this interface below, then you are good to go:

If we Click on “Send Tokens” we get an error because we don’t have any $cudos token or testnet token

testnet tokens hold no real-world value and cannot be transferred to the mainnet. They are solely used for development and testing purposes.

Let’s head back to Cudos Tesnet Dashboard to get some testnet tokens, and connect keplr wallet again, on the bottom left click on the faucet icon, paste in your Cudos testnet address(You can copy from keplr) and the number of $cudos you want, and click “Receive tokens”

You can check keplr to see your balance or go back to your dApp running on localhost:3000 and click “Fetch balance”

Before you click “Send Tokens” if you want to change the amount of $cudos you send to yourself you can navigate to ./pages/index.tsx Scroll down to where you have the variable of msg that is calling the send function inside the sendTokens arrow function and change the amount from 1000 to what you want.

Back to our dApp, click on “Send Token” and write a memo(what the transaction is for) you can also lower your gas fee by clicking on “transaction” and changing it from Average to Low, then click “Approve”

The higher the gas fee the faster the transaction

After waiting for a few seconds you will get the Result:

This shows you have successfully sent for instance 100 $cudos testnet tokens to yourself. you can read through the result to see the transaction Hash, the recipient, the sender, the amount e.t.c

Alternatively, We can also check the transaction history on Cudos Testnet Explorer, and search for your address or transaction hash(You can find it in the result displayed on your dApp)

Congratulations you have learned how to send $cudos token to yourself!

Before we go, let's change the Create Cosmos App heading text in our dApp to something relatable to the scope of our project, don’t you think?

Let's navigate to ./pages/index.tsx Scroll down, and change the title text inside of the Head tag inside of the return keyword to “Send Token dApp” first

Then scroll down to where the Heading tag is and also change its text to “Send Token dApp” You can now go back to your browser, and reload to see changes.

Let's also change the welcome Text to something better like: “This dApps enables you to send token to yourself”, let's also reduce the font size, copy and paste this into the Text tag _fontSize={{ md:'2xl' }}_, we can now see the changes made to our dApp.

Useful Resources

Cudos Discord: Get Cudos-related help here on their official discord.
Cudos Testnet Dashboard: Helps you manage Cudos on the testnet and get some testnet tokens
Cudos Mainnet Dashboard: Helps you manage Cudos on the mainnet.
Create-cosmos-app GitHub repo: More info about create-cosmos-app
Cosmology Tech: Video tutorials on create-cosmos-app

Conclusion

Congratulations! You have successfully built a send token dApp using the create-cosmos-app Send Tokens example, added Cudos mainnet and testnet to keplr, modify the dApp to send $cudos instead of $atom, and checked the transaction on Cudos Explorer. Keep exploring and building within the Cosmos ecosystem!

You can find me on the Cudos Discord community @zizicrypt for any clarifications and support if you have any questions or encounter any issues during the process. Additionally, you can reach out to me on Twitter.

Happy coding!

Building a Cosmos App Frontend with create-cosmos-app and Keplr Wallet Integration

Mitchyugan — Mon, 08 Jan 2024 19:08:59 +0000

In this tutorial, we’ll walk through the process of creating a frontend for decentralized apps (dapps) that connect to the Keplr Wallet. We’ll achieve this using the create-cosmos-app tool, which brings together CosmosKit, Nextjs, Telescope, and Chakra UI, providing an easy way to start building dapps with all the necessary dependencies bundled up for you.

What you will get from this Article

How to install Node.js
How to install the Keplr Wallet extension
How to install Yarn globally using npm
How to use the create-cosmos-app tool to create a frontend that can connect to multiple chains
Links to valuable resources related to create-cosmos-app

Prerequisites

Before we get started, ensure you have Node.js installed, because we will use Node package manager(npm) to run our commands. You can download it from https://nodejs.org/en and follow the installation instructions. After installation, you can verify it by running the command node -v in your command prompt (cmd):

Congratulations you have successfully installed node!

Creating a Cosmos App with create-cosmos-app

What is create-cosmos-app (CCA)
CCA is a tooling used to create frontend Decentralize apps (dapps) that connect to Keplr wallet and can also be used to interact with smart contracts.

First, we need to install create-cosmos-app globally by running the following command in your terminal:
npm install -g create-cosmos-app

Next, create your dapp by executing the create-cosmos-app command and providing a name for your app:
create-cosmos-app

Choose the connect-multi-chain option to enable connection to multiple chains. Wait for the installation of all dependencies to complete.

connect-chain builds the dapp that defaults to one chain.
connect-multi-chain builds the dapp with miltiple chain.

Before running any Yarn commands, you need to install Yarn globally using npm:
npm install --global yarn

You can check if Yarn installed successfully by running yarn -v in your terminal:

Start the server for your project with the following commands:
cd ./<the name of your app> && yarn dev
For example, if your app is named “my-app,” the command would be:
cd my-app && yarn dev

Your project will now be running at http://localhost:3000/.

You have successfully started your Project!

Installing Keplr Wallet

To interact with your dapp, you’ll need the Keplr Wallet extension. If you’re using Chrome or Microsoft Edge, you can download it from the Chrome Web Store: https://chrome.google.com/webstore/detail/keplr/dmkamcknogkgcdfhhbddcghachkejeap.

Alternatively, visit the official Keplr website for downloads compatible with other browsers: https://www.keplr.app/download.

After installing the Keplr Wallet extension, click on the puzzle icon at the top right of your Chrome browser and pin Keplr Wallet for easy access.

Creating and Securing Your Keplr Wallet

Open a new tab and click on the pinned Keplr Wallet. Choose the option to “Create a new wallet.”

After clicking “Create a new Wallet” we’ll have a screen like this:

Choose the option to “Create new recovery phrase”

Remember to carefully read and understand the warning messages. It is crucial to keep your recovery phrase safe and not share it with anyone, as it grants full control over your assets.:

After clicking “I understand show my phrase,” you’ll be given the option to choose between a 12-word and 24-word recovery phrase. Select 24 words for enhanced security.

Copy and save your recovery phrase in a secure location. You will not be able to restore your account without it. Fill out the required inputs correctly, including two words from your recovery phrase, wallet name, and a strong password.

then click “Next”:

Select as many chains as you want, scroll down to see more chains, and also search for chains.

then click “save”:

you will be directed to this section once you have successfully created your account:

You have successfully Installed Keplr Wallet

Integrating Keplr and Your Dapp

Now, return to your dapp running at http://localhost:3000/ and click the “Connect Wallet” button.

By default, the Cosmos App is connected to the Cosmos Hub chain. You can select any other chain you want and click “Connect Wallet.”

Click on Keplr and then “Approve” to establish the connection.

If everything goes well, you’ll see your Cosmos App connected to Keplr Wallet.

Useful Resources

Here are some valuable resources to learn more about create-cosmos-app and related libraries:

CosmosKit: For wallet Connections
Telescope: For working with Software development kit (SDK) messages
Ts Codegen: For converting your smart contracts into Typescript
Cosmwasm Academy: To learn about Cosmwasm smart contracts
Chain Registry: Involves all Chains connect to Cosmos App
Cosmology Tech Website: Links to the Official Cosmology website
Chakra Ui: This has a lot of prebuilt components
NextJs: For static and server-side rendering
Create-cosmos-app GitHub repo

Conclusion

Congratulations! You have successfully built a Cosmos App frontend using the create-cosmos-app tool and integrated it with the Keplr Wallet to connect to various chains in the Cosmos ecosystem. Keep exploring and building within the Cosmos ecosystem!

You can find me on the Cudos Discord community for any clarifications and support if you have any questions or encounter any issues during the process. Additionally, you can reach out to me on Twitter.

Happy coding!

Forem: Mitchyugan

Exploring The Main Concepts in the Cosmos SDK, Part 1 Accounts.

Accounts

Public key cryptography

Sign and verify

Conclusion

Reaching Consensus in a Distributed Network: The Byzantine Generals Problem.

The Byzantine Generals Problem

Reaching consensus

Proof-of-Work (PoW)

Proof-of-Stake (PoS)

Delegated-Proof-of-Stake (DPoS)

Proof-of-Authority (PoA)

Practical Byzantine Fault Tolerance (pBFT)

CometBFT and consensus in the interchain

Further Reading

Exploring the Key States of a Blockchain Lifecycle.

Introduction

Genesis Block (The Birth of Every Blockchain):

Transaction Creation (Initiating Digital Transactions):

Transaction Verification (The Role of Miners and Validators):

Block Formation (Grouping Transactions Together):

Consensus (The Backbone of Blockchain):

Block Addition (Expanding the Chain):

Block Validation (Ensuring Block Integrity):

Chain Forks (Managing Temporary Divergence):

Smart Contract Execution (Automating Transactions):

Consensus Updates (The Evolution of the Protocol):

Data Storage (Immutable and Distributed Records):

Decentralization (The Power of Distributed Networks):

End of Life (Theoretical Infinity):

Conclusion

100+ Essential Blockchain Terminologies Explained

Useful Links:

Simplifying and Exploring Several Technical Terms of the Interchain.

Understanding the Technical Terms

Useful Link & Resources

Conclusion

Exploring Fundamental Concepts in the Cosmos Ecosystem.

Stay in Touch

Modifying the create-cosmos-app Frontend dApp to send $Cudos token to Yourself.

What you will get from this Article

Prerequisites

Creating the send token Frontend

Adding Cudos Testnet to Keplr

Modifying dApp to send $cudos token to yourself

Useful Resources

Conclusion

Building a Cosmos App Frontend with create-cosmos-app and Keplr Wallet Integration

What you will get from this Article

Prerequisites

Creating a Cosmos App with create-cosmos-app

Installing Keplr Wallet

Creating and Securing Your Keplr Wallet

Integrating Keplr and Your Dapp

Useful Resources

Conclusion