Cosmos Crypto is a blockchain created by a Swiss non-profit to integrate several blockchains. The ATOM token powers cosmos Crypto’s proof-of-stake blockchain.
What Is Cosmos (ATOM)?
All In Bits Inc (dba Tendermint Inc), the project’s inventor, expects Cosmos (ATOM) to be the foundation for the next generation of internet technologies. Rather than participating in crypto wars, Cosmos connects them all, enabling interoperability, currency swaps, and a Blockchain Internet (IoB). Atom (ATOM) is the network’s unique staking coin tokenizing transactions.
The team established Tendermint Core and an Inter-Blockchain Communications (IBC) protocol to make this possible. They form the Cosmos Network when they work together.
Tendermint Core — Tendermint is an open-source blockchain development platform with an open-source base layer. Anyone with an application can utilize this blockchain-in-a-box implementation to build their own decentralized/distributed network and BFT-compatible consensus architecture.
Inter-Blockchain Communications (IBC) — The next layer is the interconnectivity layer, which allows communication between the various chains. This results in a network of interconnected zones and hubs operating independently but sharing a system design. This is the foundation for a cross-chain token, data, and digital asset exchanges.
To keep everything working smoothly, Cosmos includes processing/verification hubs. Hubs validate tender mint transactions via a Proof-of-Stake (PoS) consensus. The project has gained traction in recent years due to $9 million in venture capital backing from Paradigm and Bain Capital, among others. According to London-based KR1, Cosmos was its most successful investment, raising $360,605 from a $7,000 purchase.
On March 14, 2019, the Cosmos mainnet became live. Although it is praised as a strong effort, it is not without flaws. An attack in the summer of 2019 disclosed a vulnerability that, if not addressed, might prove costly. Nonetheless, many expert experts agree with the team’s vision of a global cryptocurrency-based economy.
How Does Cosmos Work?
There are three layers to the Cosmos network:
Application — Processes transactions and keeps the network up to date.
Networking — Allows transactions and blockchains to communicate.
Consensus — Assists nodes in reaching a consensus on the system’s current state.
Cosmos uses open-source tools to connect all of the layers and allow developers to create blockchain applications.
Tendermint
The Tendermint BFT engine, the part of the network that allows developers to build blockchains without writing them from the start, is the most important component of this layered design.
Tendermint BFT is a technique used to protect the network, validate transactions, and commit blocks to the blockchain by a network of computers running the Cosmos software. It communicates with applications through the Application Blockchain Interface protocol.
Byzantine Fault Tolerance in Tendermint (BFT)
Tendermint Core is the heart of Tendermint’s proof-of-stake (PoS) governance mechanism that keeps the Cosmos Hub distributed network in sync.
Participants (“validator nodes”) must first stake ATOM to power the blockchain and vote on updates. To become a validator, a node must rank in the top 100 staking ATOM nodes. The amount of ATOM staked determines voting power.
Users can also delegate their tokens to other validators, allowing them to vote while still earning a share of the block reward.
Users can switch between the validators they delegate ATOM to, depending on their voting preferences, which incentivizes validators to perform honestly.
Zones and the Hub of Cosmos
The Cosmos Hub was the first blockchain to be launched on the Cosmos network. It was developed to operate as a bridge between all of the “zones” or individual blockchains created within the Cosmos network.
Each zone of Cosmos is capable of performing its primary activities on its own. Authenticating accounts and transactions, producing and distributing new tokens, and making changes to its blockchain are all part of this process.
By keeping track of the states of all the zones in the network, the Cosmos Hub is tasked with promoting interoperability.
Protocol for Inter-Blockchain Communication
The Inter-Blockchain Communication protocol (IBC) connects zones to the Cosmos Hub, allowing information to flow freely and securely between each secured zone.
Once a zone is joined to the Cosmos Hub, it is interoperable with all other zones connected to the hub, allowing data to be exchanged between blockchains with widely different applications, validators, and consensus algorithms.
SDK for Cosmos
The Cosmos team has also created a software development kit (SDK) that allows developers to create blockchains that use the Tendermint consensus algorithm.
By providing the most common functionality in blockchains, the SDK reduces complexity (i.e., staking, governance, tokens). Plugins allow developers to add any new functionality they desire.
Is Cosmos A Good Investment In 2022?
Yes, it would help if you considered investing in Cosmos now because it is an excellent long-term investment. Furthermore, the consensus in the crypto industry is that ATOM token values will continue to rise soon due to its potential blockchain technology. Cosmos is an excellent long-term investment, while active traders will benefit from its highly volatile price activity.
Crypto specialists at Economy Watch claim that if you invest in Cosmos now, your money will likely grow by as much as 625 percent by December 2025 and more than 1250 percent by the end of the decade.
CoinQuora analysts are even more optimistic about ATOM’s future, providing more reason for crypto investors to consider investing in cryptocurrency. These experts believe that if you buy Cosmos ATOM today, you will more than treble your investment by the end of 2022 and gain by as much as 8X by 2025, based on technical and fundamental analysis.