Gnosis (GNO) What is a Gnosis in crypto? Explain gnosis ecosystem
- In the year 2020 Gnosis converted itself into a decentralized autonomous organization(DAO).
- Safe, CoW protocol, Conditional Token and Gnosis Auction and Zodiac are all product incubated by Gnosis.
Gnosis is a decentralized prediction platform which was found in the year 2015. Initially developers were of the view that they have create something similar to Augur, which is a Ethereum-based prediction protocol that enables everyone to create and operate a market, but soon they realized that they need to create infrastructure tools to increase the utility of Ethereum ecosystem.
After realization gnosis developed this required tool. This included various products such as CoW protocol(CowSwap and Gnosis protocol), conditional tokens (prediction market), for safety (multisig programmable account) and gnosis auction and zodiac (standard and tooling for composable DAO).
In the year 2020 Gnosis converted itself into a decentralized autonomous organization(DAO). After one year, in 2021, xDAI and GnosisDAO community decided to come together and formed its chain – a side chain which aims to overcome the challenges faced by the Ethereum blockchain in scaling.This chain is associated to the execution layer EVM (Ethereum Virtual Machine) chain for stable transaction. It includes xDAI token and a variety of other group projects and users.
Founders of Gnosis
Gnosis was developed by Martin Koppelmann and Stefan George, Kopplemann was the CEO of the project and George was CTO in the project. The earlier a market prediction platform, was the first project supported by the Ethereum-focused incubator ConsenSys.
Koppelmann , before launching Gnosis, researched on the economic incentive structure of various scalability solutions and consensus mechanisms, and enhance the concept of universal basic income by the use of blockchain. His work led to the creation of circle, a crypto token built on the Ethereum network which seeks to manage basic income as a monetary policy. Stefan George before associating to Gnosis was working in Fairlay.com, which was founded by himself and was a centralized market prediction platform.
How does Gnosis ecosystem work – it contains variety of component that improve the utility of Ethereum
CoW Protocol – CoW protocol is a decentralized exchange which allows users to swap ERC- 20 tokens to any other token available on the network. The uniqueness of CoW protocol is that it doesn’t work on automated market maker, rather than it identifies specific buyer for a seller and provides seller with best available price, CoW protocol perform this transition by using multi-token batch auctions. Batch auction, in layman’s language, refers to a normal stock market where trade is executed at the best offer bidded on the network and then there is a ‘solver’ who helps to execute such trades.
Safe – it is a multisignature wallet suitable for both companies and individuals. It is a smart contract wallet on ethereum that requires a minimum number of approvals to perform any transaction.it supports ERC-20 tokens, Ethereum and ERC-721(NFTs) and it interacts with many other DeFi platforms.
Gnosis chain is associated to ethereum execution-layer EVM and uses xDAI to facilitate transactions and to pay fees. The network itself is secured by the consensus layer, known as Gnosis Beacon Chain (GBC).
GnosisDAO – it is collective steward of the ecosystem, formed in 2020. GnosisDAO treasury overtime has accumulated hundreds of thousands of ETH and millions of GNO tokens
Why to buy GNO tokens
GNO is the native token of Gnosis ecosystem, those who want to take part in the validating process of the network are interested in buying GNO tokens.
Users who want to earn additional reward on their tokens or want to earn staking reward purchase GNO tokens.