Cryptocurrencies fluctuate in popularity as well as price.
But how exactly does Cosmos work, and what can you do with ATOM?
What Is Cosmos?
Image Credit: Satheesh Sankaran/Flickr
Cosmos began with Tendermint, a Byzantine fault tolerance (BFT) engine.
Tendermint was created by Jae Kwon, a blockchain software architect, along with Zarko Milosevic and Ethan Buchman.
Kwon stepped down as CEO in 2020 but still acts as the company’s principal architect.
Image Credit: Satheesh Sankaran/Flickr
Tendermint stood as the gateway to the Cosmos online grid.
Because Tendermint is a consensus algorithm, it was incorporated into Cosmos when the blockchain itself was launched.
The Cosmos whitepaper was published in 2016, and the Cosmos software itself was launched in 2019.
A previous ICO was launched for Cosmos’s ATOM, but we’ll get to that a little later.
How Does Cosmos Work?
Cosmos has been described as the “Internet of Blockchains.”
The key focus of Cosmos is interoperability.
Cosmos uses something called an IBC protocol to make this possible.
An IBC, or Inter-Blockchain Communication protocol, allows blockchains to interact in a reliable and authenticated way.
Using an IBC protocol enables atomic swaps, token transfers, data sharding, and multi-range smart contracts.
In short, it tackles the various kinds of operational limits experienced by blockchain networks.
Less isolation means fewer limitations.
Isolation is a major theme in blockchain technology.
For example, blockchains cannot access external data sources without using extra tools, specifically a blockchain oracle.
TheChainlink networkis an example of a blockchain system that uses oracles to access external data.
Tackling Scalability Issues
Cosmos also has a focus on scalability.
These days, many blockchain developers take scalability very seriously.
As time passes, any given blockchain may receive increasing user numbers, resulting in a higher transactional load.
This is the case with Cosmos.
Using Cosmos, developers can make blockchain-based apps (or decentralized apps) more simply.
Blockchain technology can be very intimidating, and there’s definitely a need for easier solutions.
So, how does this work?
Cosmos’s Structure
Cosmos also uses zones and hubs in its infrastructure.
Cosmos’s zones are program-specific blockchains that developers can create on the data pipe.
Hubs, on the other hand, act as routers for the zones.
When a zone connects with one hub, it gains interoperability.
The “Cosmos Hub” was the first blockchain launched on the online grid.
It also acts as the web link’sproof of stake consensus mechanism.
The zones and hubs work together to create the entire Cosmos ecosystem.
Cosmos’s hub framework is also decentralized, which attracts open-source developers to the platform.
The more ATOM you stake, the greater your voting power.
ATOM’s price is constantly fluctuating and stands at just over ten dollars at the time of writing.
This crypto can also be staked on a number of platforms, including exchanges and wallets.
This creates a more accessible and versatile blockchain data pipe for developers and ATOM holders alike.
