For the cryptocurrency industry to reach its full potential, it’s essential that cryptocurrencies talk to each other. This is referred to as the interoperability of cryptocurrencies. Cosmos (ATOM) is a leading cryptocurrency that’s trying to tackle the issue of interoperability with other cryptocurrencies. With regard to success in this domain, Cosmos (ATOM) has successfully completed some big crypto projects, gaining traction towards interoperability.
In case you’re wondering if Cosmos (ATOM) is the only blockchain in the world that’s working in the space of interoperability, it isn’t. A couple of other big names, Polkadot and Avalanche. are doing the same. While some unique challenges will be presented in the interoperable paper currency industry, many benefits will be seen in the form of improved user safety and consumer protection. Users need to note that each of the apps being used under Cosmos (ATOM) will pay the fee in its own currency and not in ATOM.
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Cosmos (ATOM) has been dubbed “the internet of blockchains” because interoperability between cryptocurrencies is the driving force behind this cryptocurrency. It’s been designed to be scalable and to process transactions faster and cheaper. It’s estimated that each transaction on the network costs $0.01.
The interoperability of cryptocurrencies doesn’t necessarily mean sending tokens between the networks. Instead, smart contracts are used to lock in tokens on one platform and produce a tokenized replica in the form of a number to be sent to the other network. Understandably, this requires exceptional communication between independent blockchains to ensure consistency and security of the tokens being shared across the network.
Overview of Cosmos (ATOM) Coin
Cosmos (ATOM) makes up a decentralized ecosystem comprising independent blockchains and provides the foundation for the next generation of crypto technologies. While most other cryptocurrencies and exchange platforms are working on the division between the crypto industry by bringing in competition, Cosmos (ATOM) is working towards bringing these currencies and platforms together. The creator of Cosmos (ATOM), All in Bits, Inc., has achieved this through two components.
Tendermint Core
Tendermint is the blockchain development platform where any blockchain currency app can simply plug in using its own decentralized or distributed network.
Inter-blockchain Communications
This is the interconnectivity layer that provides communication between the different chains developed using the Tendermint Core. The series of interconnected chains created as a result act independently while sharing a common system architecture. A total of 230 million ATOM are sold and circulated by Cosmos (ATOM), with the total daily trading volume being $40 million. A unique thing about Cosmos (ATOM) is that it’s not mined like other cryptocurrencies are. Instead, it’s earned through a hybrid proof of stake algorithm.
It’s worth mentioning that Cosmos (ATOM) has gained almost 370% this year, which is far higher compared to the global cryptocurrency average rise of 140%. However, such is the nature of cryptocurrencies that these are highly volatile assets capable of giving their owners enormous returns with a risk of dramatic losses. It’s therefore important for a new trader to fully understand how the crypto assets industry works and how to operate in it safely. Currently, 255 apps are running on Cosmos (ATOM)’s network.
Some big names include Binance Smart Chain and Crypto.com. The Cosmos (ATOM) network is also available from most crypto exchanges, including Exodus, Coinbase, and Kraken. With regard to the size of Cosmos (ATOM), it’s currently managing digital assets worth over $156 billion that are being stored and traded using more than 260 apps and services.
Cosmos (ATOM) serves as a marketplace to operate a next-generation decentralized cryptocurrency exchange to swap digital assets between blockchains, a security provider with interchain security features and staking rewards, and a router to connect independent blockchains through decentralized bridges, and a custodian to securely hold digital assets.
Internet of Blockchains
Cosmos (ATOM) is here to solve three main problems: the governance of the crypto assets industry, the usability of cryptocurrencies, and the scalability of cryptocurrency exchange platforms and apps. By taking the lead in trying to resolve these problems, Cosmos (ATOM) has become a true internet of blockchains. If digital assets and cryptocurrency are the future of the economy, then Cosmos (ATOM) is the key to becoming part of that future.
Cosmos (ATOM) provides tools to the developers for building independent blockchains and then creating an ecosystem where these independent blockchains interoperate. These independent blockchains are called “zones.”
The first independent blockchain or zone launched by Cosmos (ATOM) was Cosmos Hub in 2019. Other notable projects in the Cosmos ecosystem include “Osmosis,” which can be used to create liquidity and trade tokens and averages more than 720,000 transactions a month. Terra is another project that allows users to trade between blockchains.
Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature.
Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies.
Alto IRA allows you to invest in stocks, bonds, mutual funds, ETFs, real estate, cryptocurrencies, and even gold for your retirement.
How Does Cosmos (ATOM) Technology Work?
Tendermint
Tendermint is the software used by Cosmos (ATOM) for replicating an application on different machines or applications. The most important thing this software ensures is consistency and security. Consistency means that every machine where a token is to be replicated sees the same state. This software is at the very core of the solution that Cosmos (ATOM) is here to provide.
Tendermint Byzantine Fault Tolerance
Byzantine Fault Tolerance or BFT refers to the ability of a computer system to continue operating even if some of its nodes fail, act maliciously, or become corrupt. In the case of Tendermint, it has a high BFT, which is built into this software as its prime feature, which ensures consistency. A high degree of BFT is achieved through an agreement between the correctly working nodes on their values.
Cosmos Hub and Zones
As discussed before, Cosmos Hub is the actual ecosystem where interoperability between different blockchains happens, whereas a zone is an independent blockchain. A great analogy of this can be the tire of a bicycle, where Cosmos Hub is the center of the wheel, and each zone is a spoke connected to the hub. This hub can then be connected to other hubs, and this network of hubs makes up the Cosmos Network.
Inter-blockchain Communication Protocol
As the name implies, the inter-blockchain communication protocol is the protocol for blockchains to exchange information. It isn’t wrong to say that this protocol is the backbone of the Cosmos (ATOM) ecosystem because it transports information from one independent blockchain or zone to another. Without this protocol, the aspiration for an interconnected world of cryptocurrencies cannot be achieved.
Cosmos Software Development Kit
The Cosmos Software Development Kit (SDK) is a framework to help developers build complex and safe application-agnostic state machines in the Tendermint software. This is an open-source framework for building blockchains.
The framework comprises three main steps: writing a custom blockchain application using a combination of prebuilt and custom modules, launching the brand new blockchain and conducting user testing to collect and incorporate feedback, and finally connecting the brand new blockchain to Cosmos Hub to improve its adoption and liquidity.
What is the Cosmos (ATOM) Coin Used For?
Transactions and Gas Fees
Gas is a special unit used in the Cosmos SDK to measure the consumption of resources during the execution of a transaction so that a fee can then be charged to the user. A block gas meter is used for measuring and reporting transactions to prevent spam and malicious transactions against users.
Cosmos Hub Governance System
The Cosmos Hub governance system is not a regulatory system. Instead, it means that every holder of Cosmos (ATOM) can take part in the governance of the network and receive staking rewards. Anyone can be a validator in this system provided they have the necessary computing resources and bandwidth required since they’re responsible for validating transactions and generating blockchains. The validators also have the responsibility to keep this trading space hygienic.
Delegation and Staking
Delegation is the process that enables staking, which in itself is the process of contributing crypto tokens to a public validator to help him conduct a proof of stake mediation.
