What is Cosmos (ATOM)?

What is Cosmos (ATOM)?

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Cosmos describes itself as being a project that addresses some of the industry's “most difficult challenges.” By providing an environment of connected blockchains, it intends to provide an antidote to “slow, costly, unscalable, and ecologically damaging” proof-of-work algorithms such as those employed by Bitcoin.

Among the project's other goals is to streamline blockchain technology for programmers using a modular design that demystifies decentralized applications.

An Interblockchain Communication protocol makes things simpler for blockchain networks to connect, hence reducing industry fragmentation.

Cosmos' beginnings trace back to 2014, when Tendermint, the network's primary contributor, was created. Cosmos produced a white paper in 2016 and performed a token sale the following year.

ATOM coins are obtained using a hybrid proof-of-stake mechanism and contribute to the project's flagship blockchain, Cosmos Hub. Additionally, this coin contributes to the network's governance.

 

Component Cosmos (ATOM)
Technologies Tendermint, Proof-of-Stake, Cosmos Hub, Cosmos SDK, Inter-Blockchain Communication protocol (IBC)
Market Capitalization $4.83 Billion+
Open-Source Yes
Consensus Mechanism Proof-of-Stake
Smart Contracts Yes
Founders/Authors Jae Kwon, Zarko Milosevic, Ethan Buchman
Launch Date March 2019
Circulating Supply of Coins 226,226,028 ATOM
Maximum Coin Supply None
Mining-based Coin? No
Is Cosmos a Stablecoin? No
Does Cosmos have a burn rate? No
Does Cosmos have a Whitepaper? Yes, the whitepaper can be viewed here

 

Evolution and Development of Cosmos

To design proof-of-stake (PoS) consensus methods, Jae Kwon started Tendermint (also referred to as All in Bits Inc.) in 2014.

In 2015, Kwon and Ethan Buchman refined the Tendermint consensus protocol that presently runs Cosmos, and in 2016, the two Tendermint co-founders released “A Network of Distributed Ledgers,” a white paper on Cosmos.

In 2017, the Interchain Foundation (ICF), a Swiss non-profit supporting the Cosmos Network, ran an ICO for the ATOM token, generating US$16.8 million in 30 minutes.

The ICF's funding program is run by two companies: Interchain GmbH, an Interchain Foundation wholly-owned subsidiary, and Informal Systems, a Tendermint co-founder Buchman-led spin-off.

The Interchain Foundation has hired Tendermint to create the Cosmos Network's infrastructure. Tendermint, one of the key players in the Cosmos network, raised $9 million in a Series A fundraising round in 2019.

To begin with, Tendermint Inc. wanted to market its Tendermint consensus software to major organizations, according to Peng Zhong, CEO and co-founder of Tendermint.

However, it later opted to focus on expanding the Cosmos network to construct as many sovereign blockchains as possible, allowing users to run their own networks with on-chain governance while also permitting asset transfers.

In terms of transaction speed, Cosmos can process a maximum of 4,000 transactions per second (TPS), which means that a new block is generated every 7.25 seconds, with 29,000 transactions that can fit into a block.

 

What makes Cosmos unique?

Some people in the crypto industry are worried about how many blockchain networks are broken up. There are hundreds of them, but only a few of them can talk to each other. This is what Cosmos wants to do. It wants to make this happen.

Cosmos is called “Blockchain 3.0,” and a prominent goal is to make sure its infrastructure is easy to use. So, the Cosmos software development kit aims to make things that can be used together.

The Cosmos initiative (ATOM) is a project that aims to build a system that can connect several different blockchains and make them work together.

Here, the goal is to make it possible for these blocks, their value, and the apps they have on them to converse with each other by using a benchmark that makes sure these operations can be done quickly.

This makes it easy to build a network with pieces of code that have already been written. Long-term, it is desired that complex applications will be easy to build because of this.

Scalability is also important, which means that a lot more transactions can be processed in a second than with older blockchains like Bitcoin and Ethereum.

It will be important for blockchains to be able to handle as much demand as payment processing companies or websites – or even better.

 

What are the main uses for Cosmos?

While Ethereum seeks to be the world's computer, Cosmos seeks to be an “internet of blockchains” that allows developers to construct blockchains for specific use cases or applications and for blockchains to interact and transact with one another.

Cosmos Hub's native cryptocurrency ATOM is utilized for transaction fees, staking, and voting.

 

What is the future potential for Cosmos?

According to the Cosmos Hub 2.0 roadmap, the Cosmos and Ethereum Gravity Bridge will enable the transfer of ATOM, Ether (ETH), ERC-20, and Cosmos Hub-based tokens between Ethereum and Cosmos Hub-compatible chains as part of the Cosmos Hub's Theta update scheduled for the first quarter of 2022.

The connection to Ethereum and other Ethereum Virtual Machine (EVM) compatible blockchains will increase Cosmos Hub's liquidity. Additionally, the upgrade will include a module for managing non-fungible tokens (NFTs), liquid staking, and interchain accounts for managing accounts across several blockchains.

Interchain security, a protocol that enables Cosmos Hub validators to validate another blockchain or many chains concurrently, is slated to arrive in the first part of 2022, according to an October Cosmos Hub update. Interchain security enables shared protection and integration with IBC, allowing Cosmos Hub stakeholders to receive rewards across various chains.

The future updates for Cosmos, according to the official Cosmos Hub, includes some of the following:

  • Non-IBC cross-chain bridges
  • Decentralized identities (DID)
  • Virtual machines
  • Zero-knowledge and optimistic rollups

Price analysis on Cosmos

Cosmos was initially launched in 2019, and its price analysis over the past two years are indicated as follows:

 

  2019 2020 2021 to date
ATOM Price High $7.5 $8.5 $44.54
ATOM Price Low $1.94 $1.64 $5.69
Market Cap $1.34B $1.72B $5.30B

 

Price prediction on Cosmos

Cosmos is an undeniably exciting and intriguing enterprise. By the end of December 2021, Cosmos is expected to be priced at a minimum of $21.3. Cosmos's price might hit $30 with an average trading value of $25.31.

According to many ATOM price estimates, the cryptocurrency's potential value around $17 in 2022, indicating a definite pessimistic tendency. 

 

Which wallets are the best option for storing Cosmos?

A wallet is a software application that crypto users can utilize to send, store, receive, and stake their ATOM. When using a digital wallet, users are given a private key, which is like a password, and a public key, which is like a bank account that can be given to others and used to receive funds.

The best wallet options for ATOM on the market are:

  1. Ledger Nano S
  2. Guarda Wallet
  3. Cosmostation Wallet
  4. imToken Wallet
  5. Lunie

 

1. Ledger Nano S: There are a lot of hardware wallets out there right now, but Ledger Nano is the most well-known one. As of right now, it can accept thousands of cryptocurrencies. It is in the process of increasing the number of currencies and tokens that it can accept.

When you use a physical cryptocurrency wallet, the private keys are always kept in cold storage on the device. This is a big benefit. When the transaction needs signatures, it will be done on the device, which will not be shown in an internet environment.

 

2. Guarda Wallet: In this case, it is a third-party wallet that can store many different currencies. This means that in addition to ATOM, users can store up to 10,000 other tokens and coins, which is more space than other wallets.

The wallet can be used on a computer and a smartphone, and it works with most operating systems.

 

3. Cosmostation Wallet: Cosmostation is accessible as a mobile wallet for iOS and Android smartphones, as well as a decentralized online wallet compatible with the Ledger Nano S. Additionally, it is completely open-source, which implies that the source code is available for public scrutiny.

Apart from being a Cosmos Hub confirmed validator, the wallet also functions as a global staking wallet, supporting a variety of staking currencies. Now, it supports blockchains based on ATOM, IRISnet, Terra, and Tendermint.

 

4. imToken Wallet: imToken wallet includes a slew of useful features. Along with ATOM tokens, it supports Bitcoin, Ethereum, and other cryptocurrencies.

It is currently only accessible through the App and Google Play stores as a mobile wallet for iOS and Android devices.

The user response in the iTunes shop appears to be mostly good, although the Google Play Store comment is significantly more diverse.

The imToken wallet integrates a decentralized exchange, allowing you to trade tokens without ever leaving the wallet. This is different from the other exchange services I have seen in third-party wallets in that the transaction is made via a smart contract.

 

5. Lunie: A wallet called Lunie was made by the Cosmos team. It was the official open-source wallet for Cosmos, and because the Cosmos team made it, it may be the best way to get the most out of the network.

The Lunie wallet could be used to store ATOM tokens as well as to stake them. Users can use it even if they are not familiar with cryptocurrency. Despite experience with crypto wallets, complete beginners can still manage their ATOM tokens in the Lunie wallet. Users can also expect a connection to the Cosmos blockchain through the wallet.

 

Where can you buy Cosmos?

Users can purchase ATOM from the following popular exchanges:

  1. Kraken
  2. Coinbase
  3. Crypto.com
  4. Huobi Global
  5. CEX.io

 

1. Kraken: Established in 2011 and based in the United States, Kraken is an online cryptocurrency exchange that allows users to trade numerous cryptocurrencies, including Bitcoin, Ripple, Ethereum, and Litecoin, via a variety of intuitive mobile platforms.

Traders benefit from round-the-clock customer service and access to an extensive library of instructional resources.

 

PROS CONS
Offers sophisticated mobile trading platforms High instant purchase fees
Provides 24/7 customer support There are withdrawal fees and high minimums
There is a selection of educational material offered  
Massive range of markets offered  
High trust score in the crypto community  
Perfect for beginners and professional traders  

 

2. Coinbase: Headquartered in the United States and regulated by FinCEN, Coinbase is a trusted exchange that has been in operation since 2012. Coinbase, headquartered in San Francisco, California, is a digital currency wallet and trading platform.

It enables businesses and customers to engage in cryptocurrency transactions using Bitcoin, Ethereum, and Litecoin. Coinbase has a market capitalization of over 160 billion dollars and over 30 million users worldwide.

Additionally, they provide a comprehensive collection of instructional resources to traders, and their site is accessible in over ten languages.

 

PROS CONS
Offers user-friendly trading platforms Demo accounts are not provided
Offers a vast range of cryptocurrencies Only offers crypto trading, no forex trading or stock trading
Provides traders access to use trading tools  
There is a selection of educational material offered  
There is a dedicated customer service team available to tend to the queries of clients  
Features an ultra-low minimum deposit of $1  

 

3. Crypto.com: Founded in 2016 and based in Hong Kong, Crypto.com is an electronic decentralized cryptocurrency trading platform that is widely regarded as one of the quickest and most secure in the world.

 

PROS CONS
Offers a powerful proprietary trading platform There are no standalone trading tools offered
Beginner traders are given access to a range of educational resources Unregulated
Customer support is available 24/7  
There are more than 100 cryptocurrency coins that can be traded  
Features many crypto trading pairs  
Offers competitive rates  

 

4. Huobi Global: Huobi Global has been around since 2013, and it is headquartered in Singapore. It offers more than 234 crypto assets for trade online through the trading platforms it provides. The Huobi team is committed to offering secure, competent, reliable, and world-class services to its clients in more than 130 countries.

 

PROS CONS
Offers traders access to a choice between powerful trading platforms Unregulated exchange
There is a low minimum deposit requirement of $50 Only offers crypto trading, no forex trading, CFD trading, or stock trading
There is a wide range of coins that can be exchanged United States clients are not accepted
High level of trustworthiness  
A well-established exchange that is committed to ensuring client safety  
Offers 24/7 customer service  

 

5. CEX.io: CEX.io is a reputable United Kingdom-based exchange that is regulated and overseen by FinCEN and GFSC. CEX.IO is a multi-functional decentralized cryptocurrency exchange trading platform that serves thousands of consumers globally.

They provide a range of trading instruments for the online exchange of Bitcoin, Bitcoin Cash, Ethereum, Ripple, Stellar, Litecoin, and Tron.

 

PROS CONS
Extremely intuitive trading platform US clients are not accepted
Offers a wide range of advanced trading tools Only offers crypto trading
Beginner and intermediary traders are given access to comprehensive education and analysis  
There is 24/7 customer support provided  
Well-regulated exchange with a high trust score  
Offers a range of coins that can be traded  

 

What is Cosmos’s largest Competitor?

The largest competitor of Cosmos is Polkadot.

While both efforts attempt to make crypto more scalable and efficient, their purposes vary. Polkadot focuses on security, while Cosmos focuses on adoption.

Polkadot is often used in the finance sector. Centrifuge aims to make financing more available through the Polkadot platform. It hopes to alter the credit sector by permitting unconventional collateral.

They want to enable invoices and Bitcoin as loan collateral. In the credit sector, this might be big news that will attract a lot of attention from investors and users.

DOT and ATOM have both gotten a lot of press recently. As a result, the tokens are easily accessible on any major crypto exchange. ATOM's market worth has space to increase. Its market worth is far lower than DOT's, indicating an opportunity for development.

 

What is the Staking Process involved with Cosmos?

Cosmos uses a proof-of-stake consensus algorithm. By establishing their own validator node or transferring their votes to a validator, ATOM holders may earn a percentage of the network's block rewards and processing fees.

To maintain the Cosmos network, validators stake or lock ATOM and run special software that validates transactions.

Holders may also opt to delegate their ATOM coins to validators rather than operating the validator program themselves, retaining their stake rewards.

 

What can Cosmos smart contracts do?

A smart contract is software that operates on the blockchain network. Smart contracts are made up of programs that represent their functionality and data that represent their state.

The Cosmos SDK's flexibility allows developers to build on top of any existing Golang blockchain codebase. Ethermint is an innovative technology that can convert the Ethereum Virtual Machine, or EVM, into an SDK module. This means that Ethermint can operate like Ethereum, but it does so with the same characteristics of Tendermint BFT's. 

In addition to most Ethereum tools being compatible with Ethermint, an important component that can function on this is smart contracts.

Is Cosmos a Good Investment?

Cosmos intends to connect all blockchains. Its governance token, ATOM, helps keep the network safe.

The Interchain Foundation (an NGO that sponsors open-source blockchain technologies) and the Tendermint team are among the most active in creating Cosmos.

ATOM has risen significantly since January. According to CoinMarketCap, its price has risen by 426% since January 1. On Sept. 13, it achieved a new high of $38.78.

The Cosmos network already manages over $112 billion in digital assets via over 250 applications and services. Binance Chain (BNB), Terra (LUNA), and Crypto.com Coin are all based on Cosmos (CRO).

The unveiling of Cosmos' first decentralized finance (DeFi) platform has boosted its price. Its compatibility with Ethereum (ETH), which presently hosts the majority of DeFi apps, and Bitcoin (BTC) are other important (BTC).

Weak fundamentals notwithstanding, Cosmos has a competent management team, a clear direction, and a solution to a critical important cryptocurrency problem.

Whether Cosmos is a worthwhile investment is a personal choice. It is a new coin, and investing in cryptocurrencies is risky.

In principle, the more blockchains connect to the Cosmos network, the more valuable ATOM can become. However, such growth may be sluggish, so investors might have to HODL.

 

What is the supply and distribution of Cosmos?

Cosmos has a circulating supply of 226,226,028 ATOM with no max supply.

  • Fixed or maximum supply can be defined as the total number of coins that can ever be in circulation.
  • Total Supply refers to the number of coins that have been mined, including the missing coins that are no longer in circulation or that have been lost.
  • Circulating supply refers to the total number of coins that are in circulation.

 

Is Cosmos a viable Alternative Coin?

Yes, Cosmos is a good alternative coin based on:

  • Hacking – The Cosmos network has not experienced a successful hacking attempt
  • Security – The unique technology that Cosmos uses makes it extremely secure.
  • Transaction speed – Cosmos can process a maximum of 4,000 transactions per second (TPS), which means that a new block is generated every 7.25 seconds, with 29,000 transactions that can fit into a block.
  • Technology – Cosmos uses Tendermint, Proof-of-Stake, Cosmos Hub, Cosmos SDK, Inter-Blockchain Communication protocol (IBC), and several others.
  • Price Stability – Cryptocurrencies are inherently volatile, but Cosmos is not the most volatile in the crypto market.
  • Potential Investment – Cosmos is an extremely good potential investment because of its technology and future uses.
  • Popularity – Cosmos is a popular cryptocurrency and one of the top #100 alternative coins on the market.
  • Future Uses – Cosmos has many future uses because of its unique nature.

 

What are the differences between Cosmos and Bitcoin?

Ethereum and Bitcoin are both classified blockchains. And Cosmos is a network of several of these blockchains running concurrently. Bitcoin and Ethereum are not BFT. So, they do not match the Cosmos definition of a blockchain. (Note that non-BFT blockchains like Bitcoin and Ethereum may be part of the Cosmos network.

The structure of Bitcoin consists of:

  • An application layer where P2P transactions are carried out using Script.
  • A networking layer
  • A consensus layer
  • Sybil Resistance Layer

 

  Bitcoin Cosmos
Price change 20/21 +400% +230%
Market Cap $800 Billion+ $4.83 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #1 – Original Crypto #34

 

What are the differences between Cosmos and Ethereum?

Both the Bitcoin and the Ethereum ledgers are digital ledgers. And then there's Cosmos, which is a network of several of these blockchains running simultaneously. There is no BFT in Bitcoin or Ethereum.

So, they do not match the Cosmos network's definition of a blockchain. Blockchains like Bitcoin and Ethereum, which are not BFT, may nonetheless be a member of the Cosmos network.

Ethereum has the following distinctive layers:

  • An application layer where decentralized applications are enabled using Solidity (programming language), where developers can code smart contracts in DApps.
  • Network layer where a gossip protocol allows nodes to communicate messages and transactions amongst themselves.
  • The consensus layer consists of Ethash to achieve consensus.
  • Sybil Resistance layer, which relies on Proof-of-Work

 

  Ethereum Cosmos
Price change 20/21 +880% +230%
Market Cap $460 Billion+ $4.83 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #2 #34

 

What are the differences between Cosmos and Polkadot?

The introduction of blockchain interoperability is a major focus of the Cosmos versus Polkadot debates. Despite the existence of blockchain interoperability, there is no effective connectivity between all blockchains.

Additionally, the blockchain's network effect assures that as more people use the service, the more valuable it gets. Contrary to popular belief, there are many arguments over the distinctions between Polkadot (the former) and Cosmos (the latter).

Blockchain interoperability is a major priority of Cosmos, one of the most popular cryptocurrencies on the market now. High-performance, scalable, and customized applications can be created using Cosmos.

For autonomous crypto networks, Polkadot also provides a Proof-of-Stake (PoS)-based platform.

 

  Polkadot Cosmos
Price change 20/21 +140% +230%
Market Cap $23.20 Billion+ $4.83 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #11 #34

 

What are the differences between Cosmos and Neo?

Neo is the most feature-rich blockchain platform for decentralized application development.

Neo is an open-source, community-driven blockchain platform that employs smart contracts. These allow developers to digitize and automate asset management. 

In addition, it also provid3s sophisticated indigenous structures such as decentralized storage, oracles, and domain name service. Neo is poised to become a cornerstone of the next-generation Internet due to its efficient infrastructure and robust features.

 

  NEO Cosmos
Price change 20/21 +160% +230%
Market Cap $1.70 Billion+ $4.83 Billion+
Past Hacks None None
Popularity Medium High
Altcoin Rank #69 #34

 

What are the differences between Cosmos and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Cosmos, on the other hand, is fungible, which means that one ATOM has the same value and characteristics as another ATOM.

 

What are the differences between Cosmos and Solana?

Solana is a cryptocurrency and platform for decentralized applications. SOL (the native token) is used to cover staking transaction costs and acts as a peer-to-peer digital currency. Numerous popular exchanges, including Coinbase and Binance, now offer SOL tokens.

The differences between Cosmos and Solana refer to the following features:

  • Consensus – Solana employs a hybrid consensus, combining proof of history (PoH) and proof of stake; Cosmos only employs proof of stake (PoS).
  • Interoperability – Cosmos makes use of an inter-blockchain protocol to enable networks to connect, but Solana does not.
  • Decentralization – While Solana executes more transactions every second and charges less, this is offset by the decentralization of the consensus method utilized to do this. Cosmos is, in general, more decentralized than Solana.
  • Speed – While both blockchains are fast, Solana is the fastest, processing more than 65,000 TPS.

 

  Solana Cosmos
Price change 20/21 +9,300% +230%
Market Cap $54 Billion+ $4.83 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #5 #34

 

What are the differences between Cosmos and Cardano?

Cardano, one of Ethereum's rivals, is also a proponent of coexisting blockchains, but with a particular emphasis on communities and smart contracts.

They employ peer-review of their technology rigorously before approving any big ideas, which helps maintain a steady foundation for smart contracts and DApps. 

The key differences between Cosmos and Cardano are as follows:

  • Cardano has been a member of the Top 10 alternative currency ranking system for a long period; Cosmos has not yet joined.
  • Interoperability – Cosmos provides interoperable functionality to enable networks to connect, but Cardano does not.
  • Supply – ADA has a maximum supply of 45 million units, but ATOM has no such restriction.

 

  Cardano Cosmos
Price change 20/21 +2,100% +230%
Market Cap $42 Billion+ $4.83 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #7 #34

 

What is Gravity DEX?

The Gravity DEX is a specialized protocol that will democratize DeFi by significantly reducing transaction costs — to an average of $0.08 — making trading accessible to everyone.

Gravity DEX employs an invention known as the Equivalent Swap Price Model (ESPM), which enhances price discovery by locating the most recent swap price.

This pricing approach ensures that dealers are compensated fairly while also assuring that the cost users see the price that they will inevitably pay.

 

Is Cosmos interconnected with Gravity DEX?

Yes, Cosmos is interconnected with Gravity DEX.

The Gravity DEX system, which is backed by over $3 billion in digital assets, allows DeFi across various chains. On the Cosmos Hub, swaps and pools of digital assets between any linked blockchains are now feasible.

 

Are all digital assets secure?

In the simplest of terms, a digital asset is any piece of material that is digitally saved. This might be pictures, photographs, videos, text-based files, spreadsheets, or slide presentations.

In financial markets and the crypto space, the ecosystem of digital assets extends beyond cryptocurrency and blockchain; it also includes firms that process cryptocurrencies and supply technology, as well as businesses that hope to gain from blockchain's many applications.

Examples of digital assets include Bitcoin, Ethereum, ATOM, NEO, Cardano, and thousands of others.

Digital marketing assets are often maintained in digital libraries referred to as DAMs by corporate businesses. On the other hand, crypto digital assets are stored in software programs known as digital wallets.

Investors and traders who hold digital assets are urged to ensure that they are safeguarded. These users are presented with a wide range of varying levels and tools of security to secure digital assets.

Holders of digital assets and crypto coins must be vigilant to ensure that their coins are safe from hacks and that they do not fall prey to scams.

 

Is being backed by secured digital assets a guarantee that crypto investment is safe?

No, a digital asset is not considered safe collateral because of the risks involved with crypto investments, not only market risks by risks faced by cyberattacks and hacking attempts.