To sum it up, Cosmos presents itself as a solution to some of the blockchain industry's most challenging issues. It seeks to address the drawbacks of "slow, costly, unscalable, and environmentally damaging" proof-of-work systems, like those used by Bitcoin, by providing a network of interconnected blockchains.
The project also aims to simplify blockchain technology for developers by utilizing a modular framework that makes building decentralized apps more straightforward. Additionally, the Interblockchain Communication protocol facilitates interaction between different blockchain networks, reducing fragmentation within the industry.
The roots of Cosmos can be traced back to 2014 with the founding of Tendermint, a key contributor to the network. In 2016, Cosmos released a white paper, followed by a token sale in 2017. ATOM tokens are obtained through a hybrid proof-of-stake algorithm and play an essential role in securing the Cosmos Hub, the project's main blockchain. These tokens also contribute to the governance of the network.
Who Established Cosmos?
The Cosmos ecosystem was co-founded by Jae Kwon, Zarko Milosevic, and Ethan Buchman through Tendermint, which acts as a portal to Cosmos. Although Jae Kwon remains listed as the principal architect, he stepped down from his CEO position in 2020. He insists he's still involved but is now concentrating on other pursuits. Peng Zhong has taken over as CEO of Tendermint, and the board of directors has undergone significant changes. Their objectives include improving the developer experience, cultivating a passionate community around Cosmos, and creating educational materials to raise awareness of the network's capabilities.
How Does Cosmos Operate?
The Cosmos network is built on three layers: the application layer, the networking layer, and the consensus layer.
The application layer is responsible for processing transactions and updating the network's current state. The networking layer facilitates communication between transactions and blockchains. Meanwhile, the consensus layer ensures nodes agree on the network's state.
Cosmos employs a collection of open-source tools to connect these layers, enabling developers to create decentralized applications.
What Makes Cosmos Stand Out?
A notable concern in the crypto world is the fragmentation among blockchain networks. With hundreds of blockchains in existence, few can effectively communicate with each other. Cosmos seeks to change this dynamic by enabling such interactions.
Dubbed "Blockchain 3.0," Cosmos aims to simplify infrastructure usage, as highlighted earlier. Its software development kit emphasizes modularity, allowing for the easy assembly of networks using pre-existing code. In the long run, this approach is expected to simplify the creation of complex applications.
Scalability is also a central focus, enabling Cosmos to handle significantly more transactions per second than older blockchains like Bitcoin and Ethereum. For blockchains to gain mainstream acceptance, they must meet or exceed the capabilities of current payment processors and websites.
How Many Cosmos (ATOM) Coins Are Circulating?
ATOM has a precise total supply of 260,906,513. At the time of writing, approximately 203,121,910 of these are in circulation. It's important to note that these tokens aren't mined; instead, they are earned through staking.
In January 2017, Cosmos held two private sales, followed by a public sale in April that year, raising $16 million, approximating to $0.10 per ATOM.
Regarding token distribution, about 80% was designated for investors, with the remaining 20% shared between All In Bits and the Interchain Foundation.
Cosmos has likened ATOM tokens to the ASICs used in Bitcoin mining. A technical paper by Tendermint's team elaborated: “It is a piece of virtualized hardware (economic capital) that you need to obtain in order to participate as a keeper in the network.”
How Is the Security of the Cosmos Network Ensured?
As mentioned earlier, Cosmos utilizes a proof-of-stake consensus algorithm. Validator nodes that stake larger amounts of ATOM tokens have a higher likelihood of being selected to verify transactions and receive rewards. Nodes engaging in dishonest behavior are penalized and risk losing their staked tokens.
Where Can You Purchase Cosmos (ATOM)?
Cosmos (ATOM) is available on several major exchanges, with many opting to purchase it on platforms like Binance, Coinbase, and OKEx. Trading pairs with various fiat currencies are accessible, and more information on converting dollars and euros to crypto can be found here.
