Is Cosmos ATOM cryptocurrency a good investment?

Specifically, Cosmos is a network of blockchain networks. Developers call this concept an “Internet of Blockchains.” The goal of the project is to allow separate blockchains to communicate with each other in a seamless manner. By allowing any blockchain to communicate, share data, and transact with any other, Cosmos is able to transform friction in the market into a positive driving force for development.

Keenly, Cosmos is more than just a bridge between blockchains. This platform also features a full suite of products and features that make it an impressive option in the market. Cosmos introduces a next-generation technology stack that provides developers access to powerful tools that increase blockchain creation efficiency.

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Impressively, developers are able to create complex blockchains within the Cosmos ecosystem in a week. In comparison, the same task would take weeks using 2cd-generation blockchains. For this reason, Cosmos continues to see a growing Dapp community that helps to drive more user interaction.

What Problems Does Cosmos (ATOM) Solve?

The main goal of Cosmos is to tackle the lack of interoperability in the market. Together, the blockchain sector encompasses a huge variety of services and functionalities. However, every blockchain operates as an island currently. This weakens the overall ability of the market to accomplish important tasks such as lobbying for more pro-crypto legislation, or other vital improvements to the industry.

Through Cosmos, different blockchains can coexist with their own specialized use cases. This allows developers to focus efforts on improvements rather than spending efforts on marketing and other competition-related activities. Cosmos even allows different blockchains to leverage the capabilities of other platforms to improve their usability.

Benefits of Cosmos (ATOM)

Cosmos introduces a plethora of advantages to the market. For one, the platform is fully customizable. Developers can freely create and issue new blockchain applications and platforms with ease. Keenly, the Cosmos network functions without any central entity facilitating the activity. In this manner, the network streamlines inter-blockchain transactions and provides developers the chance to share data and tokens programmatically.

How Does Cosmos (ATOM) Work

Cosmos utilizes various proprietary open-source tools to facilitate interoperability between the blockchains in its network. The protocol autonomously monitors the state of every blockchain in the network to accomplish this task. In the Cosmos ecosystem, each network is known as a zone.

Zones

Zones enjoy the full functionality of their network. Importantly, these blockchains are independent networks that can execute any transactions they require to complete their tasks. These blockchains can issue and distribute new tokens on their networks, approve new accounts, transactions, vote, and execute protocol upgrades without any effects from their Cosmos connectivity.

Cosmos Hub

The Cosmos Hub is where all these blockchains meet. This protocol functions as an intermediary. Every zone in the network connects directly to the hub. The hub then maintains a constant record of the current state of the zone. Once a zone is connected to the Cosmos Hub, its interoperable with every other zone in the network.

Layers of Cosmos

The Cosmos ecosystem relies on three layers to bring together the entire blockchain industry. The first layer is the Application layer. This is the layer that handles processing transactions. It is also the protocol responsible for keeping tabs on the network state. Networking is the second layer of the blockchain. This is the layer that allows separate blockchains to communicate. Different blockchains, with completely different technologies, consensus mechanisms, and purposes, can leverage each other’s services using this system.

Cosmos (ATOM) Consensus

The final layer is the Consensus Protocol. Cosmos utilizes the Tendermint BFT engine. This mechanism secures the network and allows nodes to maintain a current state. Specifically, the protocol is what validates transactions and adds blocks to the blockchain.

The Tendermint BFT engine is a proof-of-stake (PoS) governance mechanism. As such, network users act as validators. Users earn rewards when they stake their crypto on Cosmos. Staking is a term used to describe the process of locking up a certain amount of crypto in a network wallet in return for rewards. Staking is one of the hottest features in the market right now because of its low risk compared to trading.

Inter-Blockchain Communication Protocol

The Inter-Blockchain Communications protocol is the coding that allows the different zones within the ecosystem to communicate with the Cosmos Hub. This protocol ensures that all information travels freely and securely between interconnected zones.

Cosmos SDK

Cosmos software development kit (SDK) allows developers to build blockchains without having to code them from scratch. Developers can use plug-ins and accomplish the core functionalities of their projects in days versus months. Think of it kind of like a website builder. You can pick from a variety of features such as staking, governance, and tokens details.

Cosmos (ATOM) Nodes

As a PoS network, users can earn a passive income staking their crypto. To be legible to become a node in the Cosmos network, you will need to remain in the top 100 stakers. This strategy is smart because it deters nefarious nodes as they would have the most to lose from any financial hits.