What is Cosmos (ATOM)?
Cosmos connects a number of blockchain ecosystems through the Cosmos Hub and its token is ATOM. Its core mission is to serve as the 'Internet of Blockchains' by promoting seamless and secure communication, data sharing and transaction execution between different independent blockchains facilitated by Cosmos Hub and secured by over 180 validators.
ATOM token is used to pay transaction fees on Cosmos' Network. At the same time, staking ATOM contributes to the security of the network. Additionally, ATOM holders can vote on proposals submitted by Cosmos Hub. Cosmos' ecosystem includes over 249 interchain applications and services.
How Does Cosmos Work?
ATOM has a design that allows decentralized application (dapp) developers to create their own blockchains. Thus, it ensures decentralization and interoperability across the ecosystem.
Tendermint: A set of ready-made developer tools that include a consensus engine (Tendermint Core) used in Cosmos and Application BlockChain Interface (ABCI), a generic application interface. These tools simplify the development process and provide pre-built engines for different applications.
Cosmos SDK: A development framework that makes it easy to build blockchain applications. It is known for its modularity and security. Networks like Cronos use the Cosmos SDK framework.
Inter-Blockchain Communication Protocol (IBC): It is a protocol that enables communication between different blockchains. It enables interoperability and secure connections between blockchains.
Cosmos SDK and Usage Examples in the Cryptocurrency Industry
Cosmos SDK is used to build blockchain applications. Launching applications is done in three steps. These steps are as follows:
Creating a Private Blockchain:
Developers can create a blockchain where they can customize their own models or use pre-built models.
Launching a Private Blockchain:
Cosmos SDK supports different use cases. For example, gaming, healthcare, prediction markets, cross-border payments and real estate applications.
Connecting to the Network:
Once the application launches a private blockchain, the Cosmos SDK connects to Cosmos' Network via IBC. This opens the door to over 100 IBC-enabled chains.
How Does Cronos Use the Cosmos SDK Framework?
Cronos is an Ethereum Virtual Machine (EVM) chain built on the Cosmos SDK framework. This allows the chain to take advantage of both Ethereum and Cosmos' ecosystems. Cosmos SDK uses Tendermint to allow transactions to be confirmed quickly and at low cost. Users can enjoy seamless digital asset and token transfers within Cosmos' ecosystem and between other Layer-1 and Layer-2 EVM chains via the IBC Protocol
Cosmos Ecosystem
Cosmos' ecosystem is constantly growing. Besides Cosmos Hub, there are several blockchain projects on the network:
Cronos: An EVM-compatible blockchain built on Cosmos SDK, allowing rapid porting of applications from Ethereum and other EVM-compatible chains.
Celestia: The world's first modular data availability blockchain network.
Injective: A Layer-1 blockchain network built specifically to support next-generation decentralized finance (DeFi) applications.
THORChain: A decentralized cross-chain liquidity protocol that allows users to swap assets between different blockchain networks.
Nomic: Provides a decentralized, non-custodial Bitcoin bridge to Cosmos and allows users to convert their local BTC to nBTC (IBC compliant token).
What is ATOM Token?
Cosmos Hub is the first Cosmos-based blockchain launched on Cosmos' network, and ATOM is Cosmos Hub's native token.
ATOM Token Features and Advantages
ATOM is used to pay transaction fees on Cosmos' Network.
Staking ATOM contributes to the security of the network. Those who stake ATOM earn rewards based on the amount of ATOM staked.
ATOM holders and validators receive a share of the transaction fees generated by the chains using the Cross-Chain Security feature.
ATOM holders can vote on proposals submitted by Cosmos Hub.
