The Cudos Network is a special-purpose blockchain designed to provide high-performance, trustless, and permissionless cloud computing for all. Consensus on the network is achieved by using the Tendermint Core and its Delegated Proof of Stake (DPoS) algorithm. In addition to leveraging Tendermint Core, the Cudos Network is supported by the Cosmos SDK to achieve high throughput, availability, and security. The promise of computing, which is core to the Cudos Network’s mission, is also expanded beyond Cosmos-based blockchains through bespoke bridges and cryptographic approaches to cross-chain interoperability. While Ethereum is the first Layer-1 blockchain, the team plans to interoperate during Mainnet launch and to expand the computing offering to a wider array of networks.
Layer 2 networks are a necessity for various blockchains, for different reasons. In Ethereum, gas costs are prohibitively high when trying to run complex workloads or store data. Cudos provides a bridge between the blockchain world and the outside world to enable blockchains to consume outside data, APIs and compute. Cudos goes a step further as well, and integrates seamlessly with Cudo, a distributed computing platform that can effectively be understood as a layer 3 for blockchains. This allows the use of specialized hardware on-demand, requested directly on-chain from a smart contract. While this type of off-chain computation solutions are much needed, Cudos is still very early and there have been actors in the same area developing their product for a long time. We will see when the protocol launches how it is able to compete with others and if they can manage to take a share of the market. The token is trading and available on both centralized (KuCoin) and decentralized exchanges (Uniswap).