What is Cosmos (ATOM)?
Cosmos is a whole system whose goal is to provide a way of interaction between all blockchains.
The blockchain itself appeared back in 2014 thanks to Jae Kwon and Ethan Backman. They were also the minds behind the Tendermint consensus, which formed the basis of this network. Without it, this project could not have been born. Both founders still run Cosmos, and in 2016 a white paper for their project was written and published. The ATOM token has been launched for operation.
Kwon and Backman came up with a consensus of their own based on classic PoS (Proof-of-Stake). The network consists of a large number of distinct blockchains, which are called zones and hubs, which act as a connector between each other. They are all powered by Tendermint Core, which gives you all the benefits of consensus (performance, security, consistency). It shares some similarities with PBFT, which deters malicious actors through a system of accountability.
The Three Pillars
The Cosmos ecosystem (ATOM), which is considered to be "blockchain 3.0," comprises three key components for organizing its work.
The blockchains of this network work with each other through Cosmos Hub. One of the main features of this main blockchain is the use of cross-chain. This option allows any blockchain running on the Cosmos system to interact with others within the network, as well as with external systems. This distinguishes the ATOM Cosmos cryptocurrency from alternative systems. It works like this:
- There is blockchain “Y” and blockchain “Z” within the ecosystem.
- When transferring coins from “Y” to “Z”, tokens are blocked in the first one, from where they are transferred from, and are created in the second one, where they are transferred to.
- The coins in "Z" become active and can be used by the owner, while the coins in "Y" remain locked until they are returned from "Z".
This system is reminiscent of Ethereum smart contracts. Unlike Ethereum, though, it operates between several blockchains, and not within one.
The project's token is called ATOM, it was released in 2017. The public sale of the token lasted less than half an hour. Users bought about more than half of the crypto issued at that time. At launch, the coin cost only 10 cents, but today its value has increased a hundred times. The token is among the top 50 coins in terms of popularity and capitalization; 277 million coins have been issued into circulation.
ATOM crypto is a governance token. The hub does not have a unified management system, but it does have a set of laws. Holders can choose which direction the project should move and vote for proposed options for the development of the platform. There are quite a lot of token owners, so more than 50 mass votes have already taken place on the platform.
IBC (Inter-Blockchain Communication)
IBC Protocol is a standardized protocol that ensures system interoperability. It works on the principle of cryptographically confirming the sending of a message from one zone to another. The protocol is used to exchange any data, not just tokens. Therefore, it becomes possible to create any projects, including decentralized exchanges, automated market makers, and any decentralized applications from the field of marketing, logistics, etc.
Why do people choose Cosmos?
Cosmos is not just about connecting different technologies. The offered tools allow anyone to develop their own blockchains in the shortest possible time. Typically, such a process can take several years, but Cosmos cuts this time down to one or two months. The system acquired this feature thanks to Tendermint’s own consensus, which allows one to create secure and scalable protocols. A set of settings will make it possible to use the for various purposes.
Cosmos (ATOM) project developers are planning to strengthen connections between platforms for efficiency and stability. Despite the volatility of blockchain and cryptocurrencies, there is potential for growth and development due to the system's support from numerous market players. The unique features of ATOM set it apart from competitors and make it difficult to keep up. Developers are expected to implement the idea of an "Internet of Blockchains" and gain a foothold in the vanguard of this movement. If ATOM continues to modernize, update, and adapt to changing realities, the founders' ambitions can be realized.
ATOM on CoinDepo
The CoinDepo platform supports Cosmos (ATOM) as one of the main cryptocurrencies. With CoinDepo, you can safely store your ATOM in Compound Interest Accounts and earn from 12% to 18% per annum + compound interest, depending on the type of interest account you choose. Today, without exaggeration, this is the best offer on the market.
You can also borrow other major cryptocurrencies and stablecoins from CoinDepo against your ATOM portfolio without opening a collateral account, which is a unique service that has no analogs in the world of digital assets.