Cosmos cryptocurrency (ATOM): what is it?
Today, virtual money and the platforms based on which they are created are actively used on the Internet for a wide variety of purposes. Because of this, this market requires constant updating, new technical developments, interesting ideas, only the most conceptual solutions, and the introduction of new technologies. Cosmos has become an innovative project that is gradually gaining leadership positions in the cryptocurrency market with its digital coin called Cosmos (ATOM).
This project is very interesting for many users. It offers unique functionality. Unsurprisingly, interest in Cosmos is growing rapidly.
Where did Cosmos come from?
Cosmos cryptocurrency appeared on the Internet not so long ago. And immediately attracted the attention of many researchers, specialists, and ordinary users. In just two months of its existence, the cryptocurrency has grown by almost 90%. A month later, it took the top-20 position by market capitalization.
The main goal for which cryptocurrency is directed is a scalability solution. The developers have set themselves specific goals to make the use of the blockchain more convenient and to achieve full sovereignty for its modern infrastructure. These goals were chosen for a reason. Take a look at the largest blockchains today such as Bitcoin and Ethereum. Scalability is their main problem. The first one processes no more than 7 transactions per second, the second – about 25.
Of course, the creators of Cosmos are not yet striving to create modern applications on the blockchain and are not trying to push other projects out of the open. But the multilayer structure is implemented here, the Go programming language is chosen as an assistant to this.
The history of Cosmos began in 2017, although the first altcoins were released only in 2018. But the beginning of the project is considered to be 2014 because even then Jae Kwon developed the Tendermint protocol. The company of the same name was founded in 2017. On its basis, the launch of Cosmos took place.
Space is a global ecosystem that has managed to harmoniously integrate completely different blockchains. The developers themselves call it the Internet of blockchains. The system is equipped with its own blockchains – Cosmos Hub. There are also smaller hubs in it, as well as zones that are at the disposal of other networks.
For the purpose of finding consensus, Tendermint was developed. Each zone has this built-in protocol. He is like an equalizer for them. A huge priority of the protocol also lies in the fact that operations that are processed on autonomous blockchains do not in any way affect the overall level of system utilization. However, such chain-linking operations use the resources of the entire network. That is why the development related to scalability does not end and is still actively pursued.
Distinctive features of Cosmos
Cosmos Hub is a cryptocurrency platform that operates on the basis of Tendermint’s PoS software consensus. The internal token used for exchange and settlements between users is ATOM.
Digital crypto coins form user deposits. Users act as validators who are involved in the PoS algorithm. The coin has low payment liquidity. It is not used to pay transaction fees. The token ensures the participation of user nodes, which in the consensus take the positions of validators.
In the Cosmos crypto network, in addition to Atoms, Photons are also used as a cryptocurrency, which have their own characteristics and purpose. So, Atoms are usually used for deposits, and Photons – for transactions.
Users who own Atoms receive financial rewards for performing validation activities. In this case, if someone decides to buy out a significant part of their Atoms, then the financial liquidity of the coins will decrease depending on the number of purchased coins. This prevents attacks on the crypto site, reducing them to zero.
Transactions in different crypto networks are possible with the payment of different commissions. The denomination is also carried out by various resources. This increases the stability and security of the project. In the future, this can become a serious help for dividends, and the user audience will expand significantly.
ATOM also differs in that at the moment there is no specific site where it could be mined. This is most likely due to the impossibility of obtaining cryptocurrency, which is explained by the specifics of the work of the parent crypto-platform Cosmos.
Benefits of Cosmos
– High degree of security. When carrying out transactions, as well as during the storage of coins, users can not worry that they will be lost, stolen, etc.
– The speed of transactions. All financial transactions within the system are carried out and confirmed very quickly.
– New technical solutions. Thanks to them, the algorithms for the interaction of participants with each other and with the crypto platform are improved.
– Advanced tools. They help to expand the possibilities of using coins for different economic areas.
Given the many positive aspects that distinguish coins and the system as a whole, experts predict rapid growth and an increase in the demand for the crypto unit. In the future, this will increase interest in the coin not only among users but also among investors.
Disadvantages of Cosmos (ATOM)
However, despite the obvious advantages, Atom also has some disadvantages. They can be justified by the fact that this cryptocurrency is only at the beginning of its journey and is still being finalized and improved. Nevertheless, the disadvantages are as follows.
– The project is raw. The development is quite young, so the crypto network is still unstable.
– Lack of investment, which would make it possible to strengthen the weaknesses, and finalize the existing problems.
– Lack of ability to mine tokens. This significantly reduces the number of users.
– Weak policy. The creators of tokens do not conduct high-profile advertising campaigns, the reason for which may be the same lack of investment funds.
The extent to which ATOM and Cosmos will be in demand and popular soon largely depends on the speed of the developers’ response to the existing shortcomings. The sooner they eliminate at least some of the negative aspects, the faster the platform will develop. She has a good concept, and she naturally has a right to exist. But only by changing the approach, one can expect positive dynamics and quick results.
The prospect of the ATOM cryptocurrency and the Cosmos platform will depend on how quickly and successfully the developers manage to eliminate at least partially the existing problems to increase user interest and stabilize the cryptosystem.
The emission of coins continues to this day, which means that new crypto coins appear every day. More than 168 million Atoms were distributed among the participants during the ICO project in 2017.
The emission of Cosmos continues, what will be its final volume is still too early to say. The management promises to disclose additional information about the total supply of tokens, inflation algorithms, and other aspects of the cryptocurrency economy later.
Does ATOM mining exist?
Many sources provide information that ATOM is a token with which you can, among other things, pay transaction fees. In fact, this is not true. The technical documentation states that Atoms are intended solely for the development of both the system and increasing its safety. How? Let’s figure it out.
Hybrid mining is possible thanks to the Transtermint protocol. This operation is analogous to PoS. Transaction processing, as well as maintaining the health of the network, is the responsibility of 100 validators. The choice is made among the users who have the most tokens. The validator must freeze its assets. If he is noticed in a fraud, the tokens will be immediately destroyed.
It is impossible to mine Atoms in the usual understanding of this process within the framework of the Cosmos, but the system opens up many other interesting and useful possibilities. So, everyone can make an effort to become a validator and receive rewards for transactions performed. It is also possible to become a delegate, invest assets in the selected validator and receive interest. True, it will not be possible to earn much in this way, as the dividend interest per month is too small – 0.6%.
How do I buy or sell Cosmos?
Given that the coin is quite young, and besides, it has technical specifics, it cannot be used for the purpose of conducting financial transactions. Also, until recently, it was not available to convert a cryptocurrency on digital exchange platforms. It was possible to get Atoms coins only by taking an active part in the Cosmos crypto platform.
Today, Atoms can be found on major exchanges, so there should be no significant problems buying cryptocurrency. You can buy or sell them for cryptocurrency or fiat.