Cosmos (ATOM): An Open and Interoperable Blockchain Future

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Bittime - Let's get to know another blockchain ecosystem known as Cosmos and its ATOM token. Read the full explanation!

What is Cosmos?

Cosmos is the Internet of Blockchains which is a blockchain ecosystem created to facilitate effective communication between various distributed ledgers. 

Developed in 2016, Cosmos is considered a pioneer in creating an interoperable platform of open-source blockchains that can simplify transactions between them. The cryptocurrency that powers this ecosystem is called ATOM.

How Does Cosmos Work?

Cosmos operates by leveraging the concept of “hubs,” the Tendermint consensus algorithm, and the Inter-Blockchain Communication (IBC) protocol . Hubs are entities that facilitate communication between blockchains, Tendermint is a consensus algorithm that ensures security, while IBC is a protocol that allows secure message exchange between different blockchains.

The platform provides zones or smart contracts that can operate autonomously, giving developers the flexibility to build their blockchain applications quickly and efficiently. IBC becomes the core of the Cosmos interoperability system, enabling the transfer of assets and data between autonomous and decentralized blockchains.

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Cosmos Functions

• Interoperability: Cosmos solves the challenges of interoperability in the blockchain world, enabling seamless communication between various blockchains such as Binance Chain, Terra, and Crypto.org.
• Zones and Hubs: Zones or smart contracts are parts of Cosmos that operate autonomously, while hubs serve as links between zones. Cosmos Hub, as the main hub, maintains a record of the status of each zone.
• Tendermint BFT Algorithm: Cosmos uses the Tendermint Byzantine Fault Tolerance (BFT) consensus algorithm to validate transactions and maintain network security.
• Inter-Blockchain Communication (IBC) Protocol: This protocol allows zones and hubs to communicate and exchange assets securely across the network.

Cosmos Types

In the Cosmos ecosystem, there are several types that play a key role:

• Cosmos Hub: Is the core entity in the ecosystem, recording the status of all zones and serving as the main hub.
• Zones: Are smart contracts or blockchain applications that operate independently.
• Tendermint BFT: A consensus algorithm that secures the network by validating transactions.

Cosmos vs Polkadot Comparison

Although Cosmos and Polkadot have similar governance principles, the main differences lie in the validation of transactions and asset transfers between the systems. Cosmos uses a hub protocol that allows validation of transactions by the top 100 validators, while Polkadot uses parachains that share validators to ensure unified security.

Additionally, Cosmos uses the IBC protocol which facilitates asset transfers and cross-chain interactions, while Polkadot uses smart contracts to transfer tokens between parachains.

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Who is Behind Cosmos?

Cosmos is the result of a multi-team collaboration, led by software developers Jae Kwon and Ethan Buchman. The project has support from the Swiss Interchain Foundation (ICF) and Tendermint Inc., with investments from well-known names in the crypto industry such as Paradigm, Bain Capital, and 1confirmation.

Cosmos Benefits

• Increased Interoperability: Cosmos provides the ability to communicate between multiple blockchains, increasing interoperability across the ecosystem.
• Easy and Fast Development: With the Cosmos SDK, developers can quickly build blockchain zones or applications without excessive complexity.
• Scalability and Sustainability: With its PoS algorithm and duplicatable zone concept, Cosmos offers a solution for blockchain scalability and sustainability.

Cosmos Advantages and Disadvantages

Profit:

• High Interoperability: Capable of communicating with multiple blockchains.
• Efficient Development: Has an SDK that makes zone development easy.
• Scalability: Addresses scalability issues with zone duplication.

Loss:

• Reliance on PoS: Although more sustainable, PoS systems can have security concerns.

Conclusion and the Future of Cosmos

Cosmos has proven its worth as the 'Internet of Blockchains,' with ATOM's success achieving significant value increases. With a focus on security and increased interoperability through the development of Interchain Security, the future looks bright for Cosmos. 

Further developments are expected to facilitate DeFi transactions and cross-chain NFT transfers, making Cosmos a major player in the global blockchain ecosystem.

How to Buy Cosmos (ATOM) on Bittime

You can buy and sell Cosmos (ATOM) in an easy and safe way via Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.  

Cosmos (ATOM) is available on Bittime with the ATOM/IDR  market pair. To be able to buy ATOM IDR  on  Bittime  , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Cosmos (ATOM) on Bittime.

Monitor price  chart movements  for Cosmos (ATOM) ,  Bitcoin (BTC) ,  Ethereum (ETH ),  Solana (SOL )  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or solicitation 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.