When you’re new to the crypto world, it can be hard to keep track of all the different networks out there.
The Cosmos Network is a network of independent blockchains powered by the Tendermint consensus protocol. It consists of many zones that can communicate with each other for trading and cross-zone transactions without downtime or data loss. If one zone goes down temporarily due to some problems like DDoS attacks on their servers which often happen nowadays, the uptime is still being kept.
If you want to learn more about how the cosmos coin works or invest in ATOM, continue reading this article!
What is ATOM, and what problem does it solve?
ATOM is the currency used to make any transaction on the Cosmos Network. It is used to pay for services that are provided by the zones. For example, fees paid to submit transactions, oracle machine execution resources, and storage capacity of hard drives in decentralized file storage systems.
The Cosmos Network has an open structure. Anyone can create their own zone and tokens on top of it. The Cosmos Network also provides an easy-to-use SDK with software tools that allow anyone to create their own zone. This way, the network gains value with every new zone that is created.
How does Cosmos (ATOM ) work?
The Cosmos Network is set up in a way that creates trust among its participants. This concept is called IBC (inter-blockchain communication).
IBC requires nodes to agree on the validity of transactions and to come to a consensus about the exact state of each blockchain by referencing their underlying cryptographic data structures, such as logs.
IBC uses cryptographic signatures to determine if messages are authentic. This means that for a zone to trust the messages passed between zones, they must be signed by private keys held by each party.
The end result of this approach is that blockchains can only trust messages from their own members, and thus, participating nodes can’t lie about what transactions were executed or about the state of a blockchain.
The Cosmos Network makes use of ECR20 tokens to transfer value within its own network. This token is what could be called an IOU. It can’t be used outside the network and doesn’t represent any underlying value (like gold, oil, or company stock). The ECR20 token is just a voucher that can be redeemed for ATOM on the main net.
But, how is this Cosmos different from any other blockchain platform?
The main difference between Cosmos and other blockchain platforms is that Cosmos allows multiple independent participants to ally. This way, they can build on top of their own blockchain while directly connecting with other participating networks through IBC.
How to Buy ATOM?
To purchase ATOM, you need to buy Ethereum or Bitcoin on an exchange like Coinbase and transfer it to an exchange that has ATOM listed. Some examples are Binance, Kucoin, EtherDelta, or Gate.io.
History of Cosmos (ATOM) and the team behind the project
Jae Kwon started the Cosmos project. He also created a platform called Tendermint that functions as a generic consensus engine for permission blockchain protocols.
Tendermint is already running on platforms like ErisDB and Monax to manage their blockchains. Jae Kwon had to hire other developers to maintain and support Tendermint as it quickly grew.
The team behind Cosmos consists of 21 people with different backgrounds, including blockchain architects, software engineers, analysts, marketers, and designers.
Jae Kwon’s goal is to create an ecosystem where different blockchain applications can easily interact and participate in their native networks while still having access to the features provided by other blockchains. This way, he wants to make cross-blockchain communication easier than ever before!
Summary – Concluding thoughts
At this point, the Cosmos Network has a lot of potential. The idea is solid, and provides stability and security to the blockchain. It will be interesting to see what will happen in the future.
So, if you are interested in building new and exciting blockchains and want to connect your respective networks, or simply just want to invest in interesting assets, the Cosmos Network might be the right choice for you!
Cosmos (ATOM) FAQ
What drives ATOM price?
The price of ATOM is driven by market speculation and available supply and demand. The more people who want to buy it, the higher its price will be! Other factors that influence its value include news surrounding the project’s development or listing on major exchanges.
What is ATOM used for?
Like any other digital currency, ATOM can be used as a store of value or to purchase goods and services. The biggest difference between ATOM and the USD is that ATOM isn’t tied to any values or assets that are external to itself.
Where can you store ATOM?
To store ATOM, you can either store them on an exchange or use an offline wallet. However, it is always recommended that you store your cryptocurrencies in a cold wallet like the Ledger Nano S to ensure the safety of your cryptocurrencies!
How does ATOM get new coins?
ATOM is minted by participating in the network. By powering up, you allocate some of your staked ATOM towards supporting consensus across all of the zones within the Cosmos Network.
Is there any way to earn ATOM?
You initially need to transfer either Ethereum och Bitcoin to get access to ATOM. After this, you can stake them and continue to earn ATOMS.
Are ATOM and Cosmos the same?
No, Cosmos is a project, and ATOM is one of its tokens. ATOM is a cryptocurrency token that aims to build an Internet of Blockchains, while Cosmos is the project’s name that will enable this.
Is Cosmos (ATOM) inflationary?
Yes, ATOM will have dynamic inflation that resets every 12 hours. The distribution rate of new coins is proportional to the amount of staking power allocated by the users across the network.
What is the Cosmos SDK?
The Cosmos SDK is a collection of toolkits for developers to create their own blockchain. Each zone that will be created on the Cosmos Network uses the same coding language that is based on Golang. This makes it easy to create new apps across multiple blockchains!