What is Cosmos (ATOM) in simple words: history, course and how to buy


2019-08-16 00:00:00:

The cryptocurrency community is growing rapidly. Today, virtual money and the platforms on the basis of which they are created are actively used on the Internet for a wide variety of purposes. In view of this, this market requires constant updating, new technical developments, interesting ideas, only the most conceptual solutions and the introduction of new technologies. This is the only way to improve the relationship that develops between users and the crypt. Cosmos has become an innovative project that is gradually gaining leadership positions in the cryptocurrency market with its digital coin called ATOM. This project is very interesting for many users. It offers unique functionality. Unsurprisingly, interest in Cosmosis growing at a rapid pace. That is why the information about its features, as well as the possibilities of mining, is so relevant. This will be discussed further.

What is Cosmos?

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 crypt has grown by almost 90%. And a month later, she took a leadership position in 20 by market capitalization.

The main goal of the cryptocurrency is a scalability solution. In addition, the developers have set themselves quite specific goals - to make the use of the blockchain more convenient, and to achieve full sovereignty for its modern infrastructure. Such 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.

Cosmos history

Officially, the history of Cosmos began in 2017, although the first altcoins were released only in 2013. However, if you dig a little deeper and study the historical facts in detail, you can come to the conclusion that the beginning of the project is 2014. It was then that Jae Kwon developed the Tendermint protocol. In 2017, the company of the same name was founded. On its basis, the launch of Cosmos took place. Its tasks are to solve problems typical for traditional blockchains:

  • create a scalable protocol that is fast, secure, and highly scalable;
  • develop a simple modular system that will allow you to create your own chains using any programming language;
  • provide a unique technology that will allow transactions and data exchange chains.

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. However, these networks have different algorithms? How can we reach consensus from this point of view? For such purposes, Tendermint was developed. Each zone has this built-in protocol. He is like an "equalizer" for them. A huge priority of the protocol is also in the fact that the operations that are processed on autonomous blockchains do not in any way affect the overall level of the systems workload. True, such operations connecting chains use the resources of the entire network. That is why the development related to scalability does not end and is still actively pursued.

From a theoretical point of view, such developments are a ready-made solution that will help unite disparate blockchains. In addition, Cosmos is a great alternative to modern crypto-exchanges. True, there are some small nuances:

  • synchronization occurs only between the platform and the chains that use smart contracts:
  • Interblockchain Communication is still being tested and is operating in the same test mode.

Despite the "inconsistencies", the project aroused genuine public interest. Especially for developers who, roughly speaking, were handed a simple tool that will help you quickly create blockchains and synchronize them with outside networks.

Distinctive features of Cosmos

Cosmos Hub is a cryptocurrency platform that operates on the basis of Tendermints PoS software consensus. Internal token used for exchange and settlements between users - ATOM.

Digital crypto coins form user deposits. Users act as validators involved in the PoS algorithm. Cryptocoin 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.

By the way, in the Kosmos 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 redeem a lot of Atoms (a significant part of them), 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. Denomination is also carried out by different 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. After all, a reliable cryptocurrency platform is exactly what many users need.

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 mother crypto-platform Cosmos.

How Cosmos works

Blockchain technologies are constantly evolving due to the demands of modern society. Such projects make it possible to create different projects, as well as decentralized applications for them. The variety and number of cryptocurrencies is constantly growing. This, of course, is good on the one hand, but on the other hand it complicates exchanges between them. Yes, there are exchanges. But most of them are decentralized and lacking liquidity. Also, many do not work with most tokens, especially new ones. Unfortunately, centralized exchanges also have enough problems, first of all they relate to security and government regulation. The latter is fraught with the fact that the account of an exchange or a trader may be frozen at any time; government agencies may also decide to close them. By the way, the state cannot close decentralized exchanges. But the more varieties of cryptocurrencies, the more problems arise with their exchange. Accordingly, many tokens operate only within the system of the project on the platform of which they were developed. Entering the stock exchange causes certain problems. And different blockchains cannot interact with each other, because each separately taken is a closed ecosystem that does not have the ability to communicate with other similar ecosystems. There remains the only possible option for interaction - the exchange. But they can only exchange cryptocurrencies or tokens among themselves. Blockchains can be used in a broader sense, not only to make payments on them. Here you can store information, record a lot of transactions. At the same time, it is extremely important that information exchange is safe and does not damage the integrity of blockchains, so as not to break the chain and ensure the integrity of the transmitted information.

Cosmos is a project that aims to provide all of the above. Its prospect is to become the internet of blockchains. This is similar to how the TCP / IP protocol suite combines networks. Cosmos develops mechanisms that ensure the interaction of different blockchains within the Cosmos ecosystem.

As part of Cosmos, there are several blockchains that are independent of each other, which are called zones. The main blockchain is called a hub. The zones are built based on the Tendermint protocol. You can create a blockchain in any programming language. Each blockchain has different settings and unique capabilities. To simplify the process of creating your own blockchain, modular systems are used.

In the future, the developers plan to start preparing the bases of the main modules so that you can create your own blockchain as easily as possible using basic mechanisms and without having specific programming skills. This will give a powerful boost to new startups that will create their own blockchains using basic modules. It will be possible to customize blockchains to fit your needs.

Each zone can interact closely with the hub and with each other within the Cosmos ecosystem. The plans are to develop options for interacting with other blockchains outside of Space that support smart contracts. After achieving these goals, perhaps the management will begin to establish interaction with blockchains, which do not work with such contracts. But even at this stage, the complexity of the technology is obvious, so its implementation is questionable. Therefore, all ideas are still considered only from a theoretical point of view.

Cosmos advantages and disadvantages

Cryptocurrency technologies and cryptocoins, in particular, have many undeniable advantages, especially when compared to traditional instruments (fiat money) through which payments are made. The ATOM cryptocurrency also has its own strengths that distinguish it from other similar coins.

  1. High degree of security. When carrying out transactions, as well as during the storage of coins, users can not worry about the fact that they will be lost, stolen, etc.
  2. The speed of transactions. All financial transactions within the system are carried out and confirmed very quickly.
  3. New technical solutions. Thanks to them, the algorithms for the interaction of participants with each other and with the crypto-platform are improved.
  4. Advanced tools. They help to expand the use of coins for different economic sectors.

Due to 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.

However, despite the obvious advantages, the 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.

  1. Dampness of the project. The development is quite young, so the crypto network is still unstable.
  2. Lack of investment that would make it possible to strengthen the weaknesses and to improve the existing problems.
  3. Lack of ability to mine tokens. This significantly reduces the number of users.
  4. Weak politics. 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 in the near future, largely depends on the speed of the developers response to 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 in order to increase user interest and stabilize the cryptosystem.

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? Lets 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 freezes its assets without fail. 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, you wont be able to earn a lot in this way: the dividend interest per month is too small - no more than 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 possible to convert a crypt on digital exchange platforms, so its purchase became only possible. The same situation developed on online exchangers - the Cosmos exchange was not available. 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 shouldnt be any significant problems in order to buy cryptocurrency. They trade tokens paired with BTC, ETH, USDT, BNB, dollars, euros and South Korean won. Trading platforms such as Bibox, Binance, Hotbit, Huobi, Gate.io, OKEx, BitForex are selling coins. You can buy or sell them for cryptocurrency or fiat.

Separately, I would like to say about the cost of this altcoin. Even at the dawn of its existence, during the ICO, its cost did not exceed 10 cents. When it entered the market, which happened in March of this year, the cost rose sharply and reached the $ 6 mark. Two days later, it grew by a few more dollars and became equal to 8.3 dollars. By the way, this value is the historical maximum for today. Experts explain such a rapid rise in the rate by the genuine interest that the altcoin caused by its appearance on the market. However, after reaching the maximum, the price value began to decline sharply. By mid-March, the cost dropped to $ 5, and a few days later - a decline occurred by 20%

At the end of March, the coin was added to the listings of BitForex and Hotbit, which again contributed to its price growth. During the first weeks of April, the cost grew slowly but very steadily and by the 20th managed to reach the $ 6 mark. However, a correction phase soon began, and the price dropped by half.

The end of the month was marked by an unexpected event - the ATOM / BTC pair was added by the Binance exchange. By the way, this was an initiative of the exchange itself, and this was done on a completely free basis. The announced listing increased the price to $ 5. At the moment, the altcoin is still trending, but downward (albeit very slow) trends have been outlined.

Interestingly, the data on capitalization appeared only in May. At the beginning of the month, the indicators varied at around $ 800, at the moment the positions have slightly decreased, and the indicator is $ 700. Nevertheless, this cryptocurrency is in the twenty in terms of market capitalization levels. The Cosmos course is as follows:

  • Cosmos to the ruble is equal to 1: 3.97 rubles.
  • Cosmos per dollar is equal to 1: 0.060896 dollars.
  • Cosmos to Euro is equal to 1: 0.055 Euro.

Where to store Cosmos

Until recently, storage was only possible on currency exchanges. However, it was not secure, the wallet could be subjected to hacker attacks. In addition, the exchange could close at any time, and, accordingly, all active users would simply disappear. There are many reliable ways to store Cosmos today . Special applications and wallets have been developed specifically for these purposes. Among the most popular crypto wallets is Lunie. As for applications, you can use such as Cosmostation, Lunagram, Trust Wallet, imToken, etc.

Cosmos emission

Is it possible to calculate how much Cosmos is in circulation? Hardly, because the emission of coins continues to this day, which means that new crypto coins appear every day. But you can knock out preliminary data. So, the ICO of the project was completed back in 2017, the capitalization limit was reached in literally half an hour. During this time, funds were raised in the equivalent of $ 17 million. More than 168 million atoms were distributed among the participants in this process.

At the time of this writing, taking into account, including private sales and tokens of the holders of the Interchain Foundation (ICF), the amount is approximately 225 million Atoms. 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. Well, for us, ordinary users, we can only wait for this moment.

What Cosmos provides

As noted above, the Cosmos network ecosystem is based on the Tendermint consensus protocol, as well as the interface used to develop applications. To achieve the stated consensus, Tendermint uses the PBFT algorithm. The latter is a guarantee of scalability, as well as complete system security.

The main idea behind PBFT is simple and straightforward. Trusted participants, the number of which is limited and fixed, are engaged in adding transactions before they are broadcast on the network. The protocol ensures the correct operation of the network, even if most of the devices simply fail. Such a scenario, of course, is excluded, but the developers took care to think over all negative options and protect the system from them. This consensus algorithm fully protects against attacks, including double-spending and censorship. 

The future of Cosmos

The cryptocurrency market is a separate topic. It is promising, constantly evolving, which means that it requires constant study and analysis. Modern conditions dictate the development of the analytical direction in this area. Many analysts and researchers have thrown every effort to study the trends and prospects of the cryptocurrency market. Each new coin that appears within the project is subject to detailed analysis. ATOM coins were no exception.

At the moment, the cryptocurrency market is in a protracted crisis, it will be possible to restore the balance as soon as Bitcoin and Ethereum - the most important crypto assets - recover. In view of this, in the opinion of most experts, there will be prospects for Atom, users who have lost faith will return. As soon as interest in cryptocurrency is restored, this will definitely have a positive effect on smaller and newer cryptocurrencies, and on the ATOM token.

However, not only the general state and situation on the market can affect the development of coins. No less important is the activity of the developers themselves and their attempts to eliminate the existing problems described somewhat above. Another criterion for successful and rapid development is the attention of investors. Agree, if Space does not arouse the interest of those who are ready to invest in it, the implementation of what was conceived by the development team may remain at the planning and development stage.

Talking about the future of the ATOM cryptocurrency and the Cosmos system in general, one should not forget about other significant factors that may negatively affect their development. And first of all, we are talking about competitors, or rather, their pressure. The fact is that many of the competing structures can offer similar system functionality with similar capabilities. So far, by the way, this has not happened. This means that the Cosmos and its cryptocurrency take place. If competitors begin to develop too rapidly, and the Cosmos will not keep up with them, the future of Cosmos may be very disappointing. This will lead to the fact that the site will fade more and more over time, and in the end, it will fly out of the list of cryptocurrency assets.

Naturally, a completely natural question arises - to buy Atoms now or not? Again, the forecasts are very, very ambiguous. Some researchers and analysts claim that the fate of the Cosmos largely depends on the quotes of a larger cryptocurrency, with which, as noted, not everything is so simple now. The same analysts assure that as soon as the growth in the value of a large cryptocurrency resumes, a new stage in the development of young coins will begin. And if this does not happen? What then? The answer is difficult, which means you can rely only on your own intuition. Other researchers are more optimistic and believe that Cosmos is a new word in the cryptocurrency market. Therefore, ATOM will soon "shoot" and take leading positions. This means that those who acquire it now will not lose money and will be able to enrich themselves. The only question is whether the cryptocurrency will shoot and when it will.

How to deal with this situation? Probably, it is best to choose the golden mean: invest money, but small. After all, the future of the Atom still remains vague. When investing in coins, you should take into account that such investments are long-term. Why? Its all about the same initially low liquidity and a difficult situation that has developed on the crypto market today. The unanimous opinion boils down to the fact that a significant increase in the Atom exchange rate quotation in the next couple of years should not be expected.

And I would also like to note. For investment to be successful, no matter which cryptocurrency you choose - a well-known one that has managed to take its leading positions, or a young one that has just entered circulation, you should not rely on predictions alone. The fact is that cryptocurrencies have a fairly high volatility. Because of this, it is almost impossible to guess what changes await her and exchange rates, especially medium and long-term. No expert has yet succeeded in making such long-term forecasts. And if you nevertheless decide to link your earnings with the cryptocurrency market, you need to strive to independently study its behavior and influences, delve into the issue and draw your own conclusions so that in the future you will not blame anyone for your own failures. After all, there are a lot of factors that can affect changes in the value of coins. Only by studying all of them, comparing and analyzing in detail, you can learn how to make money on crypto and become a major investor.

By the way, many who are engaged in studying the state of the cryptocurrency market and can somehow assess the state and the near future of a particular cryptocurrency must take into account the Roadmap of the cryptocurrency and the system on the basis of which it functions in their judgments. The Cosmos also has such a map. According to her, the blockchain must go through three main stages of its development.

  1. During "Sintez" - the first stage - basic technical work was carried out.
  2. The second stage - "ATOM" is under active development. It is supposed to launch testnet, a modular system and, of course, develop a full-fledged crypto-wallet of Cosmos.
  3. The upcoming "Galactic Era" promises to be truly explosive. Because it is at this time that the developers plan to launch the mainnet, which involves the Bitcoin and Ethereum zones. As conceived by the creators, at the end of the stage, the decentralized exchange will fully function, which no one has yet been able to achieve.

As you can see, the plans are really amazing and far-reaching. Are they destined to come true? Time will show. Two years passed between the first two eras. ATOM is still active and it is not known when it will end. When the transition to the third stage will take place is still a mystery. We hope that this will come true, despite all the troubles and stumbling blocks. By the way, the slowness does not play into the hands of the developers and makes the prospects of the coin more and more hazy. The main condition under which an increase in the value of a token can occur, as well as to expect a tremendous success of everyone who is related to it, is only a dynamic growth in the number of networks that connect to the Cosmos, as well as their activity. But this will be possible only if the system enters the "Galactic era".

In view of the above, one should not expect a rapid rise in the exchange rate over the next couple of years. This means that you should not actively add Atoms to your crypto portfolios. Slow development may not meet the expectations of the system. And in the future, much more successful competitors may appear, which levels out all the attempts of Space developers to develop the blockchain. According to the most optimistic forecasts (and, by the way, the most unlikely ones), if a fortunate coincidence of circumstances occurs and the market rises significantly, the price of a coin could rise to $ 8. Well, if this is the case, ATOM will become not only a profitable investment, but also an excellent tool that can influence the situation of the entire crypto market.

Projects on the Cosmos network

The plans of the Cosmos developers are really grandiose and long-lasting. They try to develop projects without departing from the Roadmap. The most promising projects are the following.

  1. It is the latest software that provides the most complete security, as well as the sequence of application replication on multiple devices simultaneously. It is based on two main technical components. It is about a consensus mechanism and a common interface for applications.
  2. Tendermint core. Refers to a general purpose consensus mechanism. Powered by PBFT protocol. Thanks to this mechanism, developers can easily create any application in a convenient programming language.
  3. Application Blockchain Interface (ABCI). The same application interface. All necessary transactions can be performed on it using any programming language.
  4. Inter-blockchain Communication (IBC). A special protocol provides communication between different blockchains. Enables blockchain to become an easy client for anyone else.
  5. Cosmos Network. A special network within which blockchains simply interact with each other.
  6. Сosmos Hub. It is the first blockchain network based on the Tendermint protocol.
  7. Blockchain based cryptocurrency. Provides consensus building and is intended to pay for transactions within the network.
  8. The crypto used for commissions is a native token.
  9. Testnet Cosmos.

Lets sum up

Summing up, I would like to note once again what Cosmos is . This is a promising project, an interesting blockchain that really has a right to exist. It is a decentralized and scalable platform on the basis of which completely different blockchains have unique interoperability. Moreover, such interaction can be useful for many participants and active users of crypto markets. The network is based on independent parallel blockchains operating according to BFT consensus algorithms. The project was officially launched in mid-March this year. He is young enough, but very ambitious. Already at this stage, the results of the work are visible, and they cannot but rejoice. The prospects are colossal and the further development of the system depends only on the activity of the developers, as well as on their desire. And, of course, financial injections from investors play an important role - without material support, any project is doomed to failure.

To date, the development team has proposed a reliable ecosystem that makes it possible to transfer information between blockchains. It is based on modular, adaptable and interchangeable tools that are so necessary to create in the future not only a decentralized Internet, but also a powerful and, most importantly, effective financial system.

Undoubtedly, the goal of the project is to facilitate the creation of blockchains and overcome any barriers that may arise between them. This will make it possible to interact without barriers. Ecosystem Cosmos provides sovereignty to interconnected blockchains. It is the most optimal solution for a variety of use cases. The operation of the mechanism is provided by modular tools. This project is truly promising. As soon as its popularity grows (and we sincerely believe that this will happen in the near future), the value of the Atom cryptocurrency will increase , which will become a worthy replacement for the old crypto coins.