What Is Cosmos?
This blog post will cover:
- About Cosmos (ATOM)
- Where did Cosmos (ATOM) come from?
- What are the advantages of Cosmos (ATOM)?
- What are the disadvantages of Cosmos (ATOM)?
- How to buy Cosmos (ATOM) on SimpleSwap?
About Cosmos (ATOM)
Cosmos is the ecosystem that is composed of the blockchains, which can interact with each other. Forbes called Cosmos "a World Wide Web for blockchains". ATOM is a coin that is used in the Cosmos Hub for paying transaction fees at the main Cosmos center, and participation in the consensus process.
Cosmos blockchain is positioned as “the Internet of Blockchains” which works using the Proof-of-Stake consensus algorithm.
In general, Cosmos is a big ecosystem. Using it as a base, you can build completely independent blockchains and apps. To ease the process of creating new projects, Cosmos provides various tools, modules and ready solutions. The project plans to make the most popular modules. Thanks to the development simplicity, blockchain is gaining popularity among devs. Every Cosmos-based project could be launched inside the ecosystem and cooperate via the Inter-Blockchain Communication protocol (abbreviated as IBC).
Right now more than 263 applications and services were already started and are successfully functioning. The growth prospects of blockchain are caused by its scalability. It can produce an unlimited number of “Cosmos Hubs”, based on which the new projects of the ecosystem are created.
Here are three main elements of the ecosystem:
- Tendermint is the core of the PoS consensus algorithm and the foundation for the generation of a basic blockchain protocol. Tendermint Core lowers the time of protocol building down to several months.
- Cosmos Software Development Kit is a modul framework created to make new networks. Due to SDK it is possible to build blockchains and decentralized apps on a Tendermint base. Earlier, SDK framework was utilized for making Binance DEX, Kava, Terra and others.
- Inter-Blockchain Communication (IBC) is a protocol allowing independent blockchains cooperation, including outside of the system.
ATOM is a native coin of the Cosmos blockchain. It is used by ATOM holders for paying transaction fees. They also can stake their coins, participate in the blocks’ creation, join the governance and vote for Cosmos blockchain development.
A participant who held the largest amount of tokens while staking, is capable to become a validator. Now, the available number of validators is 125. Later it will be increased to 300. Further, Photon token will be used for paying the network fees. Cosmos validators are able to confirm transactions in the ecosystem. That’s how the rewards and security of Cosmos related projects are increased.
Where did Cosmos (ATOM) come from?
The founders of Cosmos are Jae Kwon and Ethan Buchman. The project is run by the non-profit organization from Switzerland called “Interchain Foundation” whose president, Jae Kwon, is also a Cosmos and Tendermit founder. In 2017, Interchain Foundation raised almost $17 000 000 for the establishment of Cosmos and Cosmos Hub which were built on the Tendermint engine. Now Cosmos projects are led by 17 companies.
What are the advantages of Cosmos (ATOM)?
- SpeedDue to Tendermint Protocol Cosmos shows an innovative level of speed, security and scalability.
- Wide practical use of the platformIt is already applied by projects, such as Binance Chain, e-Money, IOV, IRISnet, Kava, Lino Networks, Terra. In the future, the list of partners will only expand.
- Technology of the futureAccording to most experts, the integration of various blockchains will not only solve many of the current problems of the cryptocurrency market but also make it truly global.
- User-friendlinessCosmos SDK is easy to understand and use even for beginner developers.
- FinalityOnce a certain action has been executed, it cannot be taken back.
What are the disadvantages of Cosmos (ATOM)?
- Strong competitionThere are projects that offer the same ideas, startups like AION, Penta and Polkadot.
- Not everyone will become a validator, it will be possible just for TOP 100 participantsThis fact becomes a driver for people to accumulate coins ang get into the TOP 100 list. In case TOP 100 players hold a large percentage of coins it might lead to the centralization.
- Success of the Cosmos stands on the existing blockchains readiness to integrate it as a standard of interaction into their architecture
How to buy Cosmos (ATOM) on SimpleSwap?
Let’s say you want to buy Cosmos. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:
- For example, you want to swap BTC for ATOM. Select the currency you want to exchange (e.g. BTC) in the first drop-downlist. Then enter the amount you want to swap.
- Select ATOM in the second drop-down list. You’ll see the estimated amount that you’ll get after the exchange.
- Click the Exchange button.
- Enter the Recipient's Address. ATOM will be sent. Be careful and make sure you use the correct address.
- Create the exchange.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the BTC to ATOM exchange.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.