What is Cosmos (ATOM) and How does Cosmos (ATOM) work?

What is Cosmos (ATOM)?

Cosmos (ATOM), is a decentralised futuristic ecosystem of interconnected apps and services that is always expanding. It’s an interconnected ecosystem of services owned and operated by the community.

Cosmos uses the Inter-Blockchain Communication (IBC) protocol to connect its apps and services. It allows for the unrestricted exchange of assets and data between sovereign autonomous blockchains.

Cosmos, dubbed an “Internet of blockchains” by its founders, attempts to construct a network of crypto networks linked by open-source tools for facilitating cross-network transactions. The newly introduced Inter-Blockchain Communication (IBC) protocol can now be used by Cosmos-based blockchains.

Cosmos is a significant player in the realm of blockchain interconnection thanks to its industry-standard that facilitates inter-blockchain communication.

Cosmos stands out from other projects because of its emphasis on customization options and interoperability.

Rather than focusing on its network, it aims to create an ecosystem of networks that can communicate data and tokens algorithmically, without the need for a central hub.

Every self-governing blockchain generated within Cosmos (referred to as a “zone”) is then anchored to the Cosmos Hub, which keeps track of each zone’s current status and vice versa.

The native ATOM coin powers the Cosmos Hub, a proof-of-stake blockchain.

Users who want to stay up to date on Cosmos’ ongoing development state can use the website to track its progress.

The Larger Picture

Cosmos’ mission is to make it simple for developers to create blockchains and to overcome obstacles between them by enabling them to connect. The ultimate goal is to develop a blockchain network that can connect. 


Blockchains can use Cosmos to protect their sovereignty, execute transactions quickly, and communicate with other blockchains in the ecosystem.

Cosmos leverages open source tools like Tedermint, Cosmos SDK, and IBC to achieve its purpose. It aids in the development of custom, safe, interoperable, and reliable blockchain applications.

Who are the founders of Cosmos (ATOM)?

Jae Kwon, Zarko Milosevic, and Ethan Buchman were the co-founders of Tendermint, the gateway to the Cosmos ecosystem. Kwon resigned as CEO in 2020, even though he is still identified as principal architect.

He insists that he is still very much a part of the project, but that he is concentrating on other projects. Peng Zhong has taken over as Tendermint’s CEO, and the entire board of directors has been completely restructured.

Their objectives encompass improving the developer experience, growing an enthusiastic Cosmos community, and developing instructional tools so that a larger number of people are informed of the network’s capabilities.

What makes Cosmos (ATOM) unique?

The degrees of fragmentation found in blockchain networks are a big source of concern for some in the crypto sector. There are dozens of them, but only a few can speak with one another. By rendering this feasible, Cosmos hopes to turn this on its head.

Cosmos is dubbed “Blockchain 3.0“, and as previously said, one of its main goals is to make its infrastructure as user-friendly as possible. The Cosmos software development kit concentrates on modularity to achieve this goal.

This makes it simple to put together a network using code that already exists. In the long run, it’s envisaged that sophisticated applications would be simple to build as a consequence.

Another objective is scalability, which means that far more transactions may be handled per second than on older blockchains like Bitcoin and Ethereum. If blockchains are to ever gain broad acceptance, they must be capable of handling traffic as well as or better than existing payment processing firms or websites.

How Many Cosmos (ATOM) Coins?

The Cosmos network’s native tokens are known as ATOMs. Staking and validating blocks, voting on regulatory issues, and paying transaction fees are all possible using ATOMs.

When the Cosmos mainnet debuted, the first ATOM tokens were issued and handed to early contributors, token sale participants, the Cosmos Foundation, and core developers. As a bonus for network validators, new ATOMs are created.

The total supply of ATOM is relatively limited – 260,906,513 ATOM Coins to be precise. Approximately 203,121,910 ATOM Coins  of these were in circulation. It’s important to note that these cryptocurrencies aren’t mined, but rather gained by staking. There are 225,012,654 ATOM coins in circulation, and the maximum supply is unknown.

How does Cosmos (ATOM) Work?    

Cosmos is the most similar project to Polkadot, which likewise aims to build an ecosystem of interoperable blockchain networks. Cosmos, unlike Polkadot, places a premium on autonomous blockchains’ sovereignty, which means they must protect themselves, have their government, and operate their validators.

Tendermint – A consensus technology that allows developers to design a quick, scalable, and reliable proof-of-stake blockchain. It is open-source software that can be used in decentralised networks like Cosmos to accomplish Byzantine fault tolerance (BFT).

In layman’s terms, BFT indicates that a decentralised network can continue to operate safely and reach an agreement on its existing iteration even if some of the individuals involved in the process have faltered or are malignant.

The Cosmos SDK – enables programmers to develop blockchain-based apps using Tendermint.

The Inter-Blockchain Communication Protocol (IBC) – A mechanism for connecting and communicating between different blockchains.

In the Cosmos ecosystem, blockchains connect using a hub and zone approach. If you were to connect Ethereum and Bitcoin via Cosmos, for example, each blockchain would have to connect to its zone. The Ethereum zone and the Bitcoin zone would then each link to a hub, and Ether and Bitcoin could be moved between them via this shared hub

Conclusion

In a word, Cosmos is an ecosystem built around a set of modular, interchangeable, and adaptive tools, rather than a product. Tendermint BFT and Cosmos SDK enable blockchain development to be strong and easy.

Cosmos takes use of blockchain applications’ scalability and scales them to millions of users via vertical and horizontal scaling solutions.
Cosmos makes a compelling argument for solving the challenge of blockchain interconnectivity. Its long-term success is largely dependent on the Cosmos technology’s long-term performance and the adaptability of its approach in reaction to competitors’ actions.

It’s feasible that there’s enough area in the interconnection market for numerous initiatives to meet more specific demand.

For more such interesting articles, check Zeen blog.

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