This week we take you to discover the Cosmos ecosystem and its native ATOM token. Building on its success, Cosmos crypto regularly breaks into the top 20 in the world. More than just an app, Cosmos has the ambition to become “the internet of blockchains”. In what way? Buckle up, head to the cosmos!
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What is Crypto Cosmos (ATOM) and its ecosystem?
The Cosmos cryptocurrency is among the 15 cryptocurrencies with high potential in 2022 according to Bank of America. It is a safe bet that Cosmos will become a major crypto player in the coming years. Discover below the main general lines of the Cosmos ecosystem.
The goal of the Cosmos ecosystem
The genesis of the Cosmos project dates back to 2004. Its native token, ATOM, was put into circulation in 2016. In a nutshell, Cosmos aims to solve interoperability issues between blockchains.
There are currently many blockchains, each with its own characteristics. If this enriches the blockchain “landscape”, on the other hand it is a problem when it comes to making blockchains communicate with each other. This is where the Cosmos project makes sense. In the same way that the Internet network allows the exchange between different websites, the Cosmos ecosystem works on the interoperability between blockchains. Specifically, with Cosmos, a user can use or develop an application belonging to blockchain A that can call data from blockchain B.
Instead of focusing solely on building a blockchain, Cosmos looks beyond and anticipates future needs. In fact, many believe that various blockchains will emerge victorious in the current race. The challenge will then be to make them communicate with each other. Proof of its credibility, Cosmos can boast of seeing recognized cryptocurrencies using its ecosystem such as Binance Coin, Crypto.com or Terra.
Finally, it is good to know that Cosmos has its own wallet called Keplr, which allows a user to evolve in a completely decentralized way. Keplr is the equivalent of the Maiar application with Elrond, for example.
The basics of the Cosmos ecosystem
To understand the basics of the Cosmos ecosystem, it is good to consider a blockchain as a solution consisting of three levels:
- Request. As its name indicates, it is the application itself, where the transactions are carried out (Cosmos SDK).
- Networks. This is the level that manages communication between blockchains.
- Consensus. This is how the nodes agree on the state of the network and validate transactions.
According to this decomposition, the Cosmos ecosystem is made up of 4 main solutions.
Tendermint can be viewed as a package that brings together the Network and Consensus parts of a blockchain. This generic package is available to developers on Cosmos. In other words, it simplifies the work of the developers since they only have to deal with the coding of their application.
The connection between Tendermint and the application is made using the ABCI protocol. However, one of the great advantages of Tendermint is its compatibility. Therefore, developers can code their application in any computer language. This is a major difference from the Ethereum platform where developers must use the Solidity language.
Now, what about existing blockchains that don’t have the Tendermint “terminal”? Specifically, imagine that tomorrow it is necessary to connect the Bitcoin blockchain to the Cosmos ecosystem. It is true that this is more complicated, but the ecosystem allows it thanks to its “Peg-Zone” principle that we will not develop in this article.
Cosmos SDK can be viewed as a library of already coded modules. These modules may be related to governance, participation or other activities. Developers can choose the corresponding module and implement it directly on their blockchain without having to go through the time-consuming coding step. Being the Cosmos ecosystem open source, any developer can create modules to enrich the library.
Inter-Blockchain Communication (IBC)
As its name suggests, it is the protocol that allows the transfer of tokens and data between different blockchains.
centers and zones
Without any particular solution, a simple connection between blockchains implies a very heavy infrastructure. Let’s take an example with 100 blockchains. If each blockchain is connected to all the others, around 4,450 connections would be needed. We understand that as the number of blockchains increases, the need for connections would quickly become unmanageable.
This is why the Cosmos ecosystem has developed an architecture in the form of “hubs” and “zones”. “Zones” are sets of several interconnected blockchains. The “hubs” connect the areas to each other.
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Cosmos cryptocurrency price (ATOM)
ATOM is the name of the native token of the Cosmos platform. Currently, the price of ATOM is around $30. This week, the launch by 21Shares of the first Comos ETP saw the price gain 8% in 24 hours on January 20.
However, the price of the Cosmos cryptocurrency suffered from the strong downward trend of the entire cryptocurrency market since Thursday. As a result, the ATOM price has lost 26% in the last 7 days.
The capitalization of the Cosmos platform is $8.6 billion, making it the 20th largest cryptocurrency in the world.
Some examples of Cosmos ecosystem projects
After briefly explaining the architecture of Cosmos, let’s talk about the many projects that the ecosystem hosts. Currently, Cosmos includes more than 262 applications and the number continues to grow. In addition to contributing to the dynamism of the ecosystem, the arrival of new projects contributes to the attractiveness of Cosmos. In fact, for their financing, new projects often use airdrops. Also, it may be relevant to have some ATOMs on hand in order to benefit from these airdrops.
The projects hosted by Cosmos are all very different. Below is a small selection of projects you should know about:
- Osmosis: main DEX present in Cosmos.
- THORChain: application that creates decentralized liquidity to supply DEXs such as Uniswap or Sushiswap for example.
- Secret Network: application that protects the confidentiality of web 3.0 data, by encrypting user data.
- Juno: open source platform specialized in the interoperability of smart contracts.
- Persistence – DeFi staking platform.
- Fetch AI – Application that uses AI to create bots that will help users in DeFi. For example, with fetch, users can apply stop loss on their orders placed on DEX.
- Akash Network: decentralized and more flexible cloud service for companies and individuals.
- e-Money: creation of stable currencies backed by European currencies.
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To accumulate coins while playing:
- In poker on the CoinPoker gaming platform
- To a global fantasy football on the Sorare platform
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