CoinCodex’s ATOM price prediction as of 15 September indicated that the coin’s value could fall to about $12 in a month’s time. Its long-term cosmos price prediction for 2025 expected the coin to drop further to an average price of $1.80 by the end of 2025. Note that any analyst and algorithm-based cosmos price prediction can be wrong. Forecasts shouldn’t be used as a substitute for your own research. By January 2022, ATOM was retesting its all-time high, boosted by a booming Terra ecosystem that had established itself as one of the biggest chains in terms of total value locked (TVL).
If you want to earn a yield on your ATOM but don’t feel like messing with DeFi, Coinbase allows Cosmos investors to earn 5% APY by holding ATOM on the exchange. Although you might earn slightly more with DeFi staking, it’s hard to beat the convenience Coinbase delivers. Cosmos is secured using an open-source proof-of-stake consensus protocol called Tendermint.
Tendermint was developed for the Cosmos ecosystem to be byzantine fault-tolerant—which means the network can continue operating even if one node breaches protocol to behave maliciously. The development team calls this collection of blockchain networks the interchain. In the same way that the internet is a collection of interconnected smaller networks (like your home WiFi network), Cosmos aims to be like an internet of blockchains. In theory, https://investmentsanalysis.info/ this process should allow for the free flow of crypto assets between any blockchains without requiring a dedicated bridging service between individual pairs of blockchains. A crypto bridge is a collection of smart contracts (blockchain apps) and other software which can be used to create ‘wrapped’ versions of crypto assets. The Cosmos network is unusual among blockchain projects because its goal is to unite other blockchain protocols.
- Finalizing and committing those blocks requires a supermajority of validators signing off on the proposed block, however.
- Cosmos (ATOM) makes up a decentralized ecosystem comprising independent blockchains and provides the foundation for the next generation of crypto technologies.
- Since the launch, there are number of players that entered into the space with similar potential (like Avalanche Crypto (AVAX))eyeing the market share being acquired by COSMOS.
- 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.
Founded by Jae Kwon and Ethan Buchman in 2016, Cosmos aims to build an ecosystem of independent, customisable and interconnected blockchains. According to its website, popular Cosmos-based blockchains include the Binance Chain (BNB), THORChain (RUNE) and Crypto.org (CRO). Dubbed ‘the internet of blockchains’, Cosmos is a layer zero blockchain network that provides developers with open-source frameworks to build public Proof-of-Stake (PoS) blockchains. It’s worth mentioning that Cosmos (ATOM) has gained almost 370% this year, which is far higher compared to the global cryptocurrency average rise of 140%.
What is the Cosmos (ATOM) Coin Used For?
A wrapped coin or token is like a ‘twin’ of the underlying asset. Rather, the owner uses and spends the ‘twin’ version, the wrapped coin. At any time, the wrapped coin can be destroyed and redeemed for the ‘real’ coin on the original blockchain. The software used to run one blockchain is generally different from any other one, and thus they cannot share the same coins. On Cosmos, users are charged with gas fees for their transactions, which will vary in value.
An example of this is Ethermint, which is basically a Tendermint-based Ethereum with its PoW features stripped out and working on top of PoS consensus. We talk less about interoperability, which is what allows blockchain networks to talk to one another. And they need https://trading-market.org/ to work together if the industry is to reach its full potential. I’m oversimplifying a little, but it would be like having different cellphone operators that couldn’t call each other. Some interoperability solutions don’t try to send tokens between the networks.
How does COSMOS network work?
The goal of Cosmos is to enable interoperability between separate blockchains, for example Bitcoin and Ethereum. This is why the Cosmos project is sometimes referred https://day-trading.info/ to as the ‘Internet of Blockchains’. Importantly, these blockchains are independent networks that can execute any transactions they require to complete their tasks.
- Although you might earn slightly more with DeFi staking, it’s hard to beat the convenience Coinbase delivers.
- Fantom FTM Coin is the prime example of earning rewards by staking a minimum 1 FTM token on its blockchain.
- It’s looking to become the blockchain that pulls all the other blockchains together in its blockchain interoperability platform.
- It is often the first to offer buying opportunities for new tokens.
Cosmos blockchains can interact through its architecture of zones. Users can build multi-asset, public proof-of-authority (PoA) and proof-of-stake (PoS) blockchains. The network’s focus is on customisability and interoperability, which sets it apart from other blockchain networks, such as Ethereum. Instead, it means that every holder of Cosmos (ATOM) can take part in the governance of the network and receive staking rewards. Anyone can be a validator in this system provided they have the necessary computing resources and bandwidth required since they’re responsible for validating transactions and generating blockchains. The validators also have the responsibility to keep this trading space hygienic.
Overview of Cosmos (ATOM) Coin
Instead, they use smart contracts to lock those tokens in on one platform, and then mint a corresponding number of tokenized replicas on the other. For example, rather than sending 5 BTC from the Bitcoin blockchain to Ethereum, this method might lock the 5 BTC and issue 5 pegged tokens such as Wrapped Bitcoin (WBTC) on another blockchain. Since one of the main tasks of the Cosmos ecosystem is to ensure interoperability, this needs to be ensured for both the Tendermint-based chains as well as for those which do not run on it. The fast-finality chains can connect with Cosmos by adapting the IBC. At the same time, the probabilistic-finality chains such as those using the Proof-of-Work, also need to be supported.
Cosmos does its part to ensure that the entire industry is able to leverage advancements in unison. For these reasons, Cosmos is already one of the most popular cryptocurrencies in the world. In order to achieve the next plateau of mainstream adoption, the crypto industry needs to find some unification. The platform came about after the well-known blockchain developer Jae Kwon introduced Tendermint to the industry. Eventually, Kwon linked up with two other respected crypto developers, Zarko Milosevic and Ethan Buchman.
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. 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.
Now that Polkadot is connected to Interchain, it will be easier for Interchain projects to access those layer 1 networks. Meanwhile, the Polkadot community will now access liquidity from other projects. The standard protocol for communication between blockchains on Cosmos is called the Inter-Blockchain Communication (IBC) protocol.
It solved the age-old puzzle of blockchain interoperability by allowing the network to connect seamlessly without any restrictions. The launch of the Cosmos main net came with huge amounts of excitement among the community as evidenced by the surge in the price of the ATOM token. IBC will work best with blockchains that have high finality such as Proof-of-Stake blockchains, but can also be made to work with Proof-of-Work blockchains through the use of peg zones.
Bridging is a way of transferring crypto assets from one blockchain to another, for example from the Bitcoin blockchain to the Ethereum network. You can get ATOM on most large cryptocurrency exchanges exchanges. You can mostly trade for them for cryptocurrencies, but there are some exchanges that offer to trade them for fiat as well.