Cosmos

What is Cosmos (ATOM)?

ATOM is the native token of Cosmos, a network of independent blockchains. If you’re interested in the current price of Cosmos, check out the ATOM price chart above.

“Cosmos” aims to solve the problems created by Proof of Work consensus mechanism. This involves slow and expensive transactions, and networks that are not environmentally friendly or scalable.

In addition to this, the Cosmos crypto project aims to make blockchain technology easier for developers. This is achieved by providing them with a modular structure.

However, the main goal of the project is create a network of as many blockchains as possible which would allow them to communicate with each other easily. It is for this reason that Space is often called Blockchain 3.0.

To simplify communication between blockchains within Cosmos, it uses inter-blockchain communication (IBC) protocol. It provides the Cosmos ecosystem with a powerful cross-chain infrastructure that links various blockchains and enables transactions between a network of interconnected chains.

History of Space

The Cosmos white paper was released in 2016. A year later, the initial token sale took place. The founders of the Cosmos company are Jae Kwon, Zarko Milosevic and Ethan Buchman. They are also the founders Tendermyatny, which is a major member of the Cosmos network. Tendermint is an open source blockchain launcher that allows you to create applications in any language. Jae Kwon was the CEO of Tendermint, but in 2020 he resigned his position, remaining only the chief architect of the project. Peng Zhong took his place as the project’s general director.

In addition, Jae Kwon, Zarko Milosevic and Ethan Buchman also developed Interchain Foundationnon-profit organization responsible for the development of the Cosmos network.

How does Space work?

The Space Network is built from parallel blockchains. These blockchains are called zones. Each zone is connected to central blockchains called hubs. The very first hub in the Cosmos network was developed in 2019 and was called Cosmos Hub.

Space extremely compatible with various crypto assets and applications. You can connect any blockchain system to Cosmos by creating a new zone that allows for direct transfer of tokens between different zones without the use of intermediaries.

Blockchains on the Cosmos network are managed by various Byzantine fault tolerance (BFT) consensus protocols. Each blockchain can choose its own BFT protocol. Essentially, BFT allows the network to constantly reach consensus, even if some nodes in the system disagree with it.

The three main tools that help create blockchains on the Cosmos network include:

• Inter-Blockchain Communication (IBC) Protocol. It is compatible with any blockchain mechanism that provides instant finality and allows the transfer of value or data between different blockchains;
• mint kernel. This is the BFT consensus mechanism that completes the transaction once a new block is created. Thus, it provides users with instant completion;
• Space SDK. It is a platform that makes it easy to build secure blockchain applications on Tendermint Core.

The purpose of ATOM coins

ATOM coins contribute to the security of the Cosmos blockchain. By staking ATOM coins, holders can earn staking rewards in addition to securing the network. How it works? Essentially, the cost of attacking a network increases when more ATOM is collateralized, as there is simply more value at risk. Thus, it is inconvenient for hackers to hack the network because it would be too expensive. Speaking of rewards, staking participants can either receive new ATOM tokens or a portion of the transaction fees charged by the Cosmos Hub.

In addition, ATOM can also be used as control token. This means that its owners can access voting processes based on various changes in the network. They can do this by placing bets.

Finally, ATOM can be used to prevent spam. This is achieved by using ATOM to pay fees. Fee costs typically vary depending on how many calculations are required for transactions.

Also, don’t forget that you can look at the Cosmos price chart above to see the current price of ATOM.

ATOM Tokenomics

Since there is no fixed maximum number of ATOM coins, more can be produced when there is demand. This makes ATOM coins inflationary. Although coins cannot be mined, they can only be earned through bid.

Regarding the distribution of the initial token offering, the majority (75%) is earmarked for private and public sales, with the remainder (25%) distributed between the initial donors, the Interchain Foundation and Tendermint.

In total, two private sales and one public sale of ATOM tokens took place in 2017. During sales, the company managed to raise $17 million.

Again, before purchasing any tokens, take a look at the Cosmos price chart above. ATOM price is subject to fluctuations as it is volatile. However, given how volatile the entire crypto market is and how any factors affecting it can affect the value of all active crypto assets, price fluctuations are to be expected.

Updating Interchain Accounts

As mentioned earlier, the Cosmos network uses the IBC protocol, which was launched in April 2021. This protocol is based on blockchain interoperability. Essentially, this allows a blockchain to control an account on another blockchain.

The Interchain Accounts update (announced in February 2022) facilitated the first-ever connection between Cosmos blockchains using the standardized IBC protocol..

The goal of the update was to provide composability in IBC, allowing individual applications to be updated without having to update the entire chain. Additionally, users can vote, stake, trade, and more with their tokens using Interchain accounts on other blockchains.