Atom is a cryptocurrency that powers the Cosmos network. It was designed to offer an alternative cryptocurrency option to Bitcoin, which has struggled with scalability issues and slow transaction times. A cryptocurrency’s value largely depends on its ability to handle transactions quickly with low fees. Atom offers affordable and scalable transactions along with an innovative approach to interoperability.
Keep reading to learn more about this trending project and whether or not you should consider investing in Atom.
Live Cosmos ATOM Price
Live Cosmos ATOM Chart
The Cosmos Network is a collection of blockchain networks. The term “Internet of Blockchains” was coined by developers to describe this idea.
The goal of Cosmos is to establish a network of interoperable cryptocurrency networks connected by open-source standards to allow for more efficient and cheap transactions.
Cosmos is one of several blockchains attempting to overcome the issue of blockchain interoperability, and it’s already gotten a lot of attention from well known cryptocurrency projects.
Rather than putting its own network first, it is attempting to create an ecosystem of networks that can share data and tokens programmatically without the need for a central authority.
The Cosmos Hub serves as a network between various blockchains and the internet. As part of this system, each new independent blockchain that emerges from Cosmos (called a “zone”) is linked to the Hub, which keeps track of the state of each zone and vice versa.
The ATOM cryptocurrency is at the core of the Cosmos Hub, a proprietary staking coin that is used by the network and tokenizes transactions.
Cosmos Hubs validate on-chain transactions and get rewarded in the form of ATOM.
Create your free account at Uphold to buy ATOM
Who started Cosmos?
Cosmos was founded in 2014 by Jae Kwon, who collaborated with Ethan Buchman the following year. They developed the SDK for Cosmos to make it easier for developers to get started creating blockchain apps.
In September 2017, the Cosmos team released a Cosmos-1 cryptocurrency network. It is powered by its native cryptocurrency ATOM, which was initially named atom. ATOM tokens act as a cryptocurrency within the Cosmos network.
The final part of the Cosmos triumvirate is called Tendermint, which is based on an older cryptocurrency project called ErisDB created by Jae Kwon during his work on Bitcoin alternative Coinjoker. Tendermint is the blockchain engine powering the Cosmos hub. It is an open-source cryptocurrency designed for creating secure, fast and scalable blockchains.
How does Cosmos work?
Tendermint Core serves as the engine that powers all of the independent Tendermint-based blockchain systems (called “zones”) in the Cosmos Network. The Hub acts as a cryptographic bridge between these independent zones so that they can communicate with each other.
To enable interoperability between the blockchains in its network, Cosmos utilizes a variety of proprietary open-source software. To accomplish this objective, the protocol examines the condition of every blockchain in the network automatically.
Zones are established for each chain (which may represent decentralized applications, intranets, and more) using Cosmos hubs. These hubs verify transactions and provide cross-chain compatibility.
Each chain has the power to choose and enforce its own independent governance. These blockchains have the capacity to create and distribute new coins on their networks, authorize new accounts, transactions, votes, and protocol upgrades without relying on Cosmos’s connection.
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.
Reasons to own Cosmos
There are many reasons to own Cosmos cryptocurrency. Cosmos cryptocurrency is a one-of-a-kind cryptocurrency that is an alternative cryptocurrency to Bitcoin. It was designed with the goal of providing low cost and scalable transactions in mind. The cryptocurrency is also innovative in that it offers interoperability between various networks.
Cosmos cryptocurrency can be used for more than just digital currency transactions, it can be used in creating smart contracts, decentralized applications, intranets, and more. Atom cryptocurrency, which powers the Cosmos network is staked by the network to validate on chain transactions. It also gets rewarded when they are validated by other hubs in the network.
Cosmos has a lot of benefits for the market. The platform is highly adaptable, and developers can use the cryptocurrency to deploy applications in different blockchains. Perhaps the most important benefit is that it enables cryptocurrency transactions between different chains, allowing for cheaper and faster cryptocurrency transactions throughout cryptocurrency exchanges.
Can you mine Cosmos Atom?
If you want to mine Cosmos, keep in mind that before you engage in it, consider whether your system will really make you any money. The cost of Cosmos can vary greatly, and the quantity of miners has a significant influence on your chances of profitability.
Consider how much value it would be to set up a mining rig at the present price of ATOM. ASICs, which are presently prohibitively pricey, would be the most powerful hardware for mining. When mining Cosmos, a GPU won’t produce as many results as a CPU but it may still be worth giving it a try.
Earning passive income from staking Cosmos
With ATOM, you have the superpower to contribute to the security and governance of the Cosmos Hub. Select one or more validators of the Cosmos Hub and start earning crypto assets. Staking ATOM grants the right to vote on proposals and make decisions on the future of the network but you can also earn income annually.
On the Cosmos website, they claim you can earn 9.7% APY and give an example if you stake 1,000 ATOM coins, you will be rewarded approximately 89.18 ATOM coins.
You earn these rewards from the fees generated on the Cosmos hub.
While staking might be lucrative, there is no such thing as a risk-free investment. The value of the asset may plummet significantly, or a validator may underperform or go down for maintenance, resulting in you having to forfeit your coins. It’s always preferable to spread out your holdings among multiple validators to decrease your chances of losing your investment.
How to buy Cosmos ATOM
Cosmos is a popular coin and has been picked up by several cryptocurrency exchanges.
One exchange we use often which supports Cosmos ATOM is Uphold.
If you are new to cryptocurrency exchanges, you’ll need to create an account in order to buy ATOM.
Final thoughts on ATOM
This project has gone under the radar for a lot of people even though it is one of the most innovative crypto projects we have come across. There are many cryptocurrency exchanges which support Cosmos cryptocurrency, so it’s accessible to cryptocurrency investors. The cryptocurrency is also an attractive investment due to its potential for growth and the staking income you can earn.
This cryptocurrency has much more use than just being a form of digital currency. Developers have the opportunity to build their own applications on top of ATOM cryptocurrency, and the interoperability allows cryptocurrency transactions to be conducted between different chains.
It’s a cryptocurrency which we will be keeping an eye on throughout 2023 and we think it has a lot of potential.