Here’s everything you need to know about the fast-growing Cosmos ecosystem.
With cryptocurrencies becoming mainstream, it is easy to forget how many challenges the industry still needs to address. For example, interoperability, which is when blockchain networks talk to one another, is one of the pressing issues plaguing the crypto sector. Right now, many blockchains operate in isolation, and they need to work together if the industry is to reach its full potential.
Cosmos (ATOM) is one blockchain that wants to solve this issue. Dubbed the "Internet of Blockchains," its technology is widely used by developers. The blockchain network seeks to transform competition into a community via its unique approach to the market.
Unlike most projects in the space, Cosmos is not about beating the competition or recognition. Instead, Cosmos seeks to help the entire blockchain sector advance via a combination of unique protocols that help bring the industry together.
A Market-Beating Cryptocurrency — But For How Much Longer?
Hop on the Cosmos bandwagon and invest in ATOM today.
Cosmos is a network of blockchain networks. The goal of the project is to allow separate blockchains to communicate with each other seamlessly. By allowing any blockchain to communicate, share data, and transact with any other, Cosmos is able to transform friction in the market into a positive driving force for development.
However, Cosmos is more than just a bridge between blockchains. This platform also features a full suite of products and features that make it a valuable player in the market. Cosmos introduces a next-generation technology stack that provides developers access to powerful tools that increase blockchain creation efficiency.
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 drives user interaction.
ATOM has been appreciating and making headlines in 2022, and this could only be the beginning. Investing in ATOM now could help you make notable returns in the long run.
Read Also: How To Make (Or Lose) Money With Cosmos (ATOM)
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Road Ahead For Cosmos (ATOM)
Cosmos has made headlines with its recent developments and functionalities, causing investors to look deeper into this crypto. Let’s discuss some of these features.
Unique Network Architecture
Cosmos utilizes various proprietary, open-source tools to facilitate interoperability between the blockchains in its network. The protocol autonomously monitors the state of every blockchain in the network to accomplish this task. In the Cosmos ecosystem, each network is known as a zone.
Zones enjoy the full functionality of their network. Importantly, these blockchains are independent networks that can execute any transactions they require to complete their tasks. These blockchains can issue and distribute new tokens on their networks, approve new accounts and transactions, vote, and execute protocol upgrades without affecting their Cosmos connectivity.
Cosmos Hub
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.
The Cosmos ecosystem relies on three layers to bring together the entire blockchain industry. The first layer is the Application layer, and it handles processing transactions. It is also the protocol responsible for keeping tabs on the network state.
Networking is the second layer of the blockchain, allowing separate blockchains to communicate. Different blockchains with entirely different technologies, consensus mechanisms, and purposes, can leverage each other’s services using this system.
The final layer is the Consensus Protocol, where Cosmos utilizes the Tendermint BFT engine. This mechanism secures the network and allows nodes to maintain a current state. Specifically, the protocol validates transactions and adds blocks to the blockchain.
Boosting Interoperability
The main goal of Cosmos is to tackle the lack of interoperability in the market. The blockchain sector encompasses a huge variety of services and functionalities. However, every blockchain operates as an island currently. 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.
Through Cosmos, different blockchains can coexist with their own specialized use cases. This allows developers to focus efforts on improvements rather than spending efforts on marketing and other competition-related activities. Cosmos even lets different blockchains leverage the capabilities of other platforms to improve their usability.
Is Cosmos (ATOM) A Buy, Hold Or Sell?
Consider adding ATOM to your crypto investment portfolio.
Cosmos has significant long-term potential and seems well-positioned to stand the test of time. However, it is still a volatile and high-risk industry, so do not invest money you cannot afford to lose. Research ATOM, its competitors, and the cryptocurrency industry to ensure you understand the risks involved before you buy.
Don't Miss: Cosmos (ATOM) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
A Cryptocurrency Under Close Watch — Now And Always
Investing in ATOM will make you a part of the growing Cosmos ecosystem.
Long gone are the days of smearing cryptocurrencies as underhand payment channels. Today, cryptocurrencies provide the world with a more efficient alternative to the status quo. 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. Experts predict a bright future for the Cosmos ecosystem, making now a good time to invest.
eToro – Best Platform To Buy Cosmos
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Read More:
The 5 Best Ways to Buy Cosmos (ATOM)
You Asked: What If I Invest $10 In Cosmos (ATOM)?
Pros And Cons Of Investing In Cosmos (ATOM)