Get to Know Cosmos (ATOM), the History of Its Creation, and Its Advantages and Disadvantages

Cosmos (ATOM) has become one of the most attention-grabbing projects in the blockchain ecosystem. Since its launch in 2019, Cosmos has sought to solve a key challenge in the crypto industry, namely interoperability between various existing blockchains. 

In this article, we will explore more about Cosmos, from its background to the technology used and its impact on the blockchain ecosystem as a whole.

What is Cosmos (ATOM)?

Cosmos (ATOM) has proven itself to be one of the most exciting projects in the blockchain ecosystem. With a vision to create an interoperable Internet of Blockchains, Cosmos has made great strides in advancing blockchain technology and bringing innovation to the crypto industry as a whole.

Cosmos has had a significant impact on the blockchain ecosystem as a whole. By facilitating interoperability between different blockchains, Cosmos opens the door to greater collaboration between blockchain projects and expands the possible uses of blockchain technology.

Cosmos uses a technology called “Tendermint” as the basis for its consensus and blockchain network. Tendermint is a highly efficient and secure Byzantine Fault Tolerance (BFT) consensus algorithm, allowing transactions to be processed quickly and reliably.

Additionally, Cosmos utilizes a protocol standard called “Inter-Blockchain Communication” (IBC) to create connections between different blockchains. IBC allows tokens and data to flow freely between connected blockchains, opening the door to a variety of new use cases and applications.

History of the Creation of the Cosmos (ATOM)

The history of Cosmos (ATOM) began in 2014 when Jae Kwon, an experienced software developer, had a vision to create an interoperable blockchain network. At that time, he saw that one of the biggest challenges in the blockchain industry was the lack of ability to communicate and interact with each other easily.

In 2017, Jae Kwon and his team began the development of Cosmos by developing Tendermint, an efficient and secure consensus algorithm for blockchain networks. They take a different approach to many other blockchain projects, focusing on the interoperability aspect of the network.

In 2019, Cosmos launched its main network, Cosmos Hub, which makes it possible to connect and manage multiple connected blockchains. This is an important milestone in Cosmos' history, marking a major step in realizing its "Internet of Blockchains" vision.

Over the following years, Cosmos continued to grow and expand its ecosystem. They launched a variety of new products and services, including an SDK (Software Development Kit) and other development tools to facilitate building decentralized applications on top of the Cosmos network.

To date, Cosmos continues to be a major player in the blockchain ecosystem, bringing innovation and solutions to the interoperability challenges faced by the crypto industry. With its commitment to technological development and inclusion, Cosmos continues to strive to create a future where multiple blockchains can interact and collaborate in harmony.

With Cosmos, users can transfer assets and data between various connected blockchains without having to go through intermediaries or central exchanges. This allows applications and users to benefit from the unique features of various blockchain networks while maintaining a high level of security and decentralization.

Additionally, Cosmos also aims to improve the scalability and efficiency of the blockchain network. By facilitating interoperability between different blockchains, Cosmos helps reduce pressure on individual networks and increases the overall capacity of the blockchain ecosystem.

Also Read: What is Governance in the Crypto World?

How Cosmos (ATOM) Works

Cosmos (ATOM) works using a technology called Tendermint and the Inter-Blockchain Communication (IBC) protocol. Here is an explanation of how Cosmos works.

1. Tendermint

Tendermint is a consensus algorithm used by Cosmos to ensure agreement on the order of transactions in the network. This algorithm allows validators in the network to reach a consensus on the state of the network quickly and efficiently. Tendermint uses a secure and reliable Byzantine Fault Tolerance (BFT) approach.

2. Zones and Hubs

The Cosmos Network consists of different blockchains called “zones”. Each zone can operate independently and has its own consensus rules. Additionally, there are also "hubs" that serve as bridges between different zones in the Cosmos network. The Hub uses the Inter-Blockchain Communication (IBC) protocol to facilitate the transfer of assets and data between connected zones.

3. Inter-Blockchain Communication (IBC)

IBC is a protocol that allows various blockchains in the Cosmos network to interact and communicate with each other. By using IBC, zones in the network can transfer assets and data safely and reliably without having to go through intermediaries. This enables seamless interoperability between various connected blockchains in the Cosmos ecosystem.

4. Staking and Delegation

Cosmos uses a proof-of-stake (PoS) mechanism to secure its network. Users can “stake” their ATOM tokens as capital to become validators or delegators in the network. Validators are responsible for validating transactions and securing the network, while delegators select validators they can trust to represent them in the validation process.

Advantages and Disadvantages of Cosmos (ATOM)

Here are some advantages and disadvantages of using Cosmos (ATOM).

Advantages of Cosmos (ATOM)

1. Interoperability

One of Cosmos' main advantages is its ability to facilitate interoperability between different blockchains. This enables the transfer of assets and data between different networks, opening the door to better integration between various blockchain platforms.

2. Scalability

Cosmos uses efficient Tendermint technology in processing transactions, which allows the network to handle large amounts of transactions quickly and reliably.

3. Development Flexibility

Cosmos provides developer-friendly tools and infrastructure for building decentralized applications ( dApps ). This allows developers to easily create and deploy applications on top of the Cosmos network.

4. Security

Cosmos uses Tendermint as its consensus algorithm, which is considered very secure and reliable in maintaining network security.

Cosmos (ATOM) Disadvantages

1. Complexity

Using Cosmos may require a fairly deep understanding of blockchain technology and related concepts. This can be a barrier for users less experienced in the crypto industry.

2. Adopt

Although Cosmos offers many advantages, its success also depends on widespread adoption and use by users and other blockchain projects. Without strong adoption, Cosmos' full potential may not be achieved.

3. Dependence on Connectivity

Cosmo's performance depends on the connectivity between the various connected blockchains. Interruptions or connectivity issues can impact overall network performance.

4. Competition

Cosmos operates in a highly competitive industry, with many other blockchain projects also offering interoperability solutions. Intense competition may impact Cosmos' adoption and growth.

How to Buy ATOM on Bittime

After knowing what ATOM is and how it works, are you interested in buying and investing in this crypto asset? You can do it at Bittime. ATOM tokens are available on Bittime in the  ATOM IDR pairing. 

 Below is a guide on how to buy ATOM tokens on Bittime. 

1. Register an account at Bittime using an active email. 
2. Complete the identity verification process.  
3. Once the account is verified, open the Bittime application.
4. Select the Market menu or click the graphic icon. 
5. Select IDR pairing to buy ATOM with Rupiah.
6. Click 'Buy'.
7. Select the order type to use. Limit orders, market orders, and stop orders are available.
8. Enter the nominal rupiah to buy ATOM.
9. Click the 'Buy ATOM' button. 
10. A notification pop-up will appear. Read it carefully and click 'Confirm'. 
11. Enter the six-digit Transaction PIN.
12. The application will display a successful order notification. 

Complete guide on how to buy ATOM, click here.

Apart from buying ATOM tokens, you can also buy various crypto assets such as BTC, ETH, SOL, ADA, AVAX, DOGE, and many others. Don't forget, keep monitoring ORDI, BTC, ETH, and SOL price chart movements today to find out crypto market trends on Bittime. 

Crypto asset buying and selling transactions on Bittime are easy, safe, and instant. Bittime is officially registered and supervised by Bappebti and Kominfo. 

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DISCLAIMER: This article is informational and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates..