In March 2019, the blockchain aiming to connect all blockchains went live and its first software was released. It is called Cosmos. In a word, Cosmos describes itself as a venture that addresses some of the blockchain industry’s “toughest issues.” Its goal is to provide an alternative to proof-of-work protocols that are sluggish, costly, unscalable, and damaging to the environment.
Put differently, it aspires to provide a network of interconnected blockchains. It also aims to simplify blockchain technology and make it more accessible to developers, due to a modular structure that demystifies decentralized apps.
Cosmos and ATOM collaborate to make communication, scalability, and interoperability between blockchains easier. It’s dubbed the “Internet of Blockchains,” and it includes the following characteristics and takeaways—the Cosmos hub intends to link the ecosystem’s blockchains while assuring their security.
In that context, the Cosmos hub offers seamless interoperability and a new token economy, with each blockchain operating independently and in parallel, allowing tokens to be freely swapped without friction. The Tendermint Core consensus mechanism is used in Cosmos, as well as the Tendermint Byzantine Fault Tolerance (BFT), which can transform black box testing systems into a duplicated blockchain. Cosmos’ software mimics a transition probability machine built in any computer language using BFT.
How Does It Differ From Other Cryptocurrencies?
Unlike Bitcoin, Litecoin, Ethereum, Cardano, and Tron, Cosmos is a brand-new blockchain technology that aims to tear down barriers across blockchains by allowing them to transact with one another. This makes it simple for programmers to create applications.
While such a unique invention presents a fantastic potential for both rookie and professional traders and investors to profit, you must be well-versed in Cosmos. We’ll go through what Cosmos does in detail, as well as any potential hazards you should be aware of. This is due to the fact that, despite cryptocurrencies’ 10-year reign as marketable tokens, no digital asset has a faultless trading history. However, the Cosmos crypto is a brand new and exciting realm, that deserves your attention. Here are some of the advantages of investing in Cosmos.
Ability To Scale Over 1000 Transactions Per Second
Cosmos, a protocol that aspires to achieve network interoperability, can handle 1,000 transactions per second (TPS). This is similar to Algorand (ALGO), a rival, and other well-known blockchain initiatives. Cosmos has created a framework that allows ATOM to flow freely in the settlement of transactions.
The speed with which transactions are processed is the fundamental reason why, less than three years after the mainnet’s debut, there’s been more than 200 use instances. Many developers may choose Cosmos as a viable successor for Ethereum 2.0 if it does not become fully functioning by the end of 2022 or early 2023. If Cardano does not become fully functioning before DeFi enthusiasts learn what Charles Hoskinson’s innovation has to give, Cosmos and other rivals will be able to take a fair piece of the decentralized finance industry.
Cosmos Engagement Is Extraordinarily High
On the market, there are hundreds of cryptocurrencies. There were just over 10,000 coins on the market in May 2021. There were a few over 17,000 cryptos on the market in January 2022. The major reason for this is that network effects are vitally important to the viability of any crypto enterprise.
On Twitter, Cosmos has over 160,000 followers. Fans are kept up to date on the project’s progress using the account @cosmos. Other useful information is disseminated so that crypto aficionados may assess the project’s future prospects.
Cosmos has nearly 32,000 members on Reddit, in addition to Twitter. On the 7th of June, 2013, the community was founded. Users have been debating the future of the site for years. Traders and investors who are wary of the cryptocurrency may wonder where they can get ATOM.
They are often referred to as the leading cryptocurrency exchanges that trade digital assets. Other topics discussed on the community’s platform include the future price of ATOM, decentralized financial applications on Cosmos, favorable Cosmos Network initiatives, and ATOM block reward and community pool.
ATOM Is Consistently Liquid
Without liquidity, a coin will trade in extermination zones. This is the main reason why you might constantly be on the lookout for potential investors. ATOM continues to generate excellent trade volumes, according to CoinMarketCap statistics.
In the first ten days of trading in July, ATOM posted daily volumes of over $100 million. This is greater than other major crypto projects like Algorand (ALGO), which had a market capitalization of $2 billion in January. The price will rise in tandem with the increase in volume.
Final Thoughts
There are various risks associated with Cosmos. Other compatible blockchain systems, such as Polkadot and Chainlink, are exerting increasing pressure. Furthermore, Ethereum continues to be the smart contract platform of choice for a number of developers. Furthermore, while ATOM has done well, its value lags well behind that of better-known cryptocurrencies such as Bitcoin and Ether.
