What is Osmosis?
Osmosis is a decentralized application chain developed using the Cosmos SDK. Since its mainnet launch in June 2021, it has emerged as one of the most active subnets within the Cosmos ecosystem. It facilitates interoperability with other chains like Cosmos, Celestia, Noble, and Axelar through the Inter-Blockchain Communication (IBC) protocol, broadening its range of applications and user base.
According to data from Mintscan, as of this writing, Osmosis's cross-chain transaction volume over the past 14 days constitutes approximately one-third of the total transaction volume across the IBC network.
Thanks to its interoperability, security, and developer-friendly features, Osmosis supports a range of DeFi applications, such as the Osmosis DEX, MilkyWay Zone, and Mars Protocol, offering users efficient trading and liquidity services.
The native token of Osmosis is OSMO, which can be used by users to pay transaction fees, engage in network governance, provide liquidity, and earn rewards through staking.
How It Works
The Osmosis chain is built on the Cosmos SDK and utilizes the Tendermint consensus algorithm. It employs an Automated Market Maker (AMM) mechanism to enable decentralized trading and supports cross-chain asset transfers and communication via the IBC protocol.
Features
Cross-Chain Interoperability: Through the IBC protocol, Osmosis can interact with other chains in the Cosmos ecosystem, enabling the free flow of tokens and information.
Decentralized Governance: Token holders can participate in network governance, voting on the direction of the network's development.
Scalability: As an independent chain, Osmosis can be tailored and optimized to meet its specific needs, allowing for the effective operation of high-performance DeFi applications.
Security: Tendermint provides security guarantees for the network, ensuring stable operation.
Learn more: https://docs.osmosis.zone/
How to use
Creating an Osmosis account
Let's take a look at how to use Osmosis with imToken. First download imToken (https://token.im) to create/import a wallet and add an Osmosis account. Click to check website certificate security
To create an Osmosis account, navigate to "My Profile" -> "Manage wallets" -> "Add", select the "Osmosis" network, and confirm. Then, return to the wallet homepage to access your newly created Osmosis account. Now you can transfer/receive tokens and try out popular DApps on the Osmosis network.
Cross-Chain Transfers
imToken supports cross-chain transfers between Osmosis and Cosmos. When transferring tokens, use the target chain's address as the recipient. After the transaction is confirmed, the tokens will be transferred to the recipient.
1. To transfer tokens from Osmosis to Cosmos: enter the Cosmos recipient address and pay miner fees with OSMO tokens.
2. To transfer from Cosmos to Osmosis: enter the Osmosis recipient address and pay miner fees with ATOM tokens.
Receiving and Transferring
In the Osmosis account, select the token you want to transfer or receive.
Transferring
Click “Transfer” then enter the amount and the recipient’s address.
Notice: please make sure that there is sufficient OSMO in your wallet to pay for the miner fee before transferring.
Receiving Tokens
Click “Receive” to share your QR code or wallet address on the page to receive tokens from others.
Study
Inter-Blockchain Communication Protocol (IBC)
The Inter Blockchain Communication Protocol (IBC) is an interoperability protocol for data transmission and verification between blockchains.
The architecture of IBC can be divided into two layers: the transport layer and the application layer.
- Transport layer: Provides the infrastructure to establish secure connections between blockchains and validate data packets transmitted across chains
- Application layer: Defines how the data packets should be processed and supports the development of cross-chain applications, such as token transfer, atomic swap, oracle data transmission, etc.
COSMOS SDK
The COSMOS SDK is a versatile framework designed for creating blockchain application layer services. It offers a range of development tools, including a command-line interface (CLI), a RESTful server, tool libraries, and various business modules (such as accounts, signatures, transfers, staking, governance, and cross-chain communication). Its goal is to simplify the process for developers to build and deploy tailored blockchain applications.
Tendermint Core
Tendermint Core serves as a foundational consensus and network communication protocol for blockchains, enabling developers to swiftly create new networks built on its framework.
Osmosis Ecosystem Applications
Osmosis Zone: A decentralized exchange
Mintscan: A block explorer to view information about blocks, transactions, wallet addresses, etc., on networks like Osmosis and Cosmos
MilkyWay Zone: A market for liquidity staking and re-staking
Mars Protocol: A lending protocol that supports Osmosis
Risk Warning: The content of this article does not constitute any form of investment advice or recommendation. imToken does not make any guarantees and promises for the third-party services and products mentioned in this article, nor assume any responsibility. Digital asset investment has risks. You should carefully evaluate these investment risks and consult with relevant professionals to make your own decisions.