A proof-of-stake consensus algorithm secures the Cosmos network. Validator nodes stake a certain amount of ATOM tokens, with those staking the most having the highest odds of being chosen to verify transactions and earn rewards. Dishonest nodes get penalized and lose the tokens they staked.
Cosmos works to create a collaborative ecosystem of different blockchains that can share data and tokens in a decentralized way, independent of any third-party. New blockchains can be tethered to the Cosmos Hub, where they can communicate with other blockchains that are also connected to the Hub.