Altcoins: Cosmos (ATOM) - What Is It? - A Deeper Look Into the Cosmos (ATOM) Platform
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Summary:
- What is The Cosmos Platform and how does it work?
- What makes the Cosmos exchange unique?
- Cosmos’ past, present and future price positions.
The Cosmo platform
Briefly put, Cosmos describes itself as a project that tackles some of the "hardest difficulties" the blockchain sector has to deal with. By providing an ecosystem of interconnected blockchains, it seeks to provide an alternative to "slow, expensive, unscalable, and ecologically destructive" proof-of-work methods, such as those employed by Bitcoin.
The project's additional objectives include reducing the complexity and difficulty of blockchain technology for developers through the use of a modular framework that demystifies decentralized apps. Last but not least, an inter blockchain communication protocol facilitates communication between blockchain networks, reducing market fragmentation.
The project's core is the Cosmos Software Development Kit (SDK). With SKD, developers can simply build their own unique blockchains from the ground up that can interact with other blockchains in the Cosmos ecosystem. The Tendermint Byzantine Fault Tolerance (BFT) consensus method is the default consensus engine included in the Cosmos SDK.
The start of Cosmos may be traced to the establishment of Tendermint in 2014, a key contributor to the network. A white paper for Cosmos was published in 2016, and a token sale took place in 2017. Earned using a hybrid proof-of-stake method, ATOM coins contribute to the security of the Cosmos Hub, the project's main blockchain. The network's governance includes this cryptocurrency.
Other characteristics include the Cosmos Inter-Blockchain Communication (IBC), which enables token transfers and data sharing between Cosmos-based blockchains.
The current market capitalization for Cosmos (ATOM) is $3,671,719,399. The current circulating supply is 286,370,297 ATOM tokens.
The native token of the Cosmos Hub is ATOM. The Cosmos Hub primarily uses ATOMs for voting and staking.
Transaction fees go to the Cosmos Hub, who then distributes them to ATOM stakers. The project website claims that as new services like interchain security and inter-blockchain bridges are released, staking payouts will rise.
The uniqueness of the Cosmos platform
The degree of fragmentation present in blockchain networks is a big source of worry for several people working in the cryptocurrency sector. Although there are hundreds of them, relatively few of them have communication capabilities. By enabling this, Cosmos hopes to flip this on its head.
As we previously discussed, Cosmos is referred to as "Blockchain 3.0," and one major objective is to make sure that its infrastructure is easy to utilize. The Cosmos software development kit emphasizes modularity in order to achieve this. This makes it simple to construct networks out of preexisting code. In the long run, it is envisaged that this will make building sophisticated applications simple. Another priority is scalability, which refers to the ability to execute far more transactions per second than more traditional blockchains like Bitcoin and Ethereum. Blockchains must be able to handle demand as well as current payment processing firms or websites, if not better, in order to become widely used.
The Interchain Accounts upgrade will be made available on February 17, 2022, according to the Interchain Foundation, a non-profit entity of the Cosmos ecosystem. The Inter-Blockchain Communications (IBC) protocol, which went live in April 2021, is the Cosmos standard for blockchain interoperability. It makes it possible for one blockchain to manage an account on another. There are now 38 projects using IBC, including Terra, the Crypto.org chain, and Gravity bridge.
The Interchain Accounts improvement will be the biggest to the ecosystem since Stargate, which made it possible for Cosmos blockchains to communicate with one another for the first time ever using the IBC standard protocol. Users can stake, vote, swap tokens, and more using Interchain Accounts on other blockchains. "Enabling composability in IBC [which] permits innovation in diverse applications to be delivered without requiring to upgrade the entire Interchain" is the stated goal of the upgrade.
Present and future prices of The Cosmos network (ATOM)
Over the past 6 months, the global markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, ATOM does fall under this category.
According to some analysts, the future price of The Cosmos network (ATOM) could reach up to $39.51 by 2025 and could see a price of more than $236.75 by 2030. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
ATOM Price Chart
Sources: finance.yahoo.com, coinmarketcap.com, capital.com, priceprediction.com
