What is the Cosmos ecosystem and its original token ATOM?

This week we take you to discover the Cosmos ecosystem and its original token ATOM. Based on its success, the Cosmos crypto regularly made its way into the world’s top 20. More than a simple application, Cosmos has the ambition of becoming the “blockchain internet”. How? Fasten your seat belt, go to the cosmos!

Source: Adobe / Jim

What is Crypto Cosmos (ATOM) and its ecosystem?

The Cosmos crypto is among the 15 cryptocurrencies with high potential in 2022, according to Bank of America. It’s a sure bet that Cosmos will become a major crypto player in the coming years. Discover below the main lines of Cosmos ecosystem.

The goal of Cosmos ecosystem

The creation of the Cosmos project dates back to 2004. Its original token, ATOM, was put into circulation in 2016. To put it simply, Cosmos intends to solve the problems ofinteroperability between blockchains.

Currently, there are many blockchains, each with its own characteristics. If this enriches the blockchain “landscape”, on the other hand, it’s a problem when it comes to get blockchains to communicate with each other. This is where the Cosmos project takes on its full significance. In the same way that the Internet network allows exchange between different sites, the Cosmos ecosystem works on interoperability between blockchains. Specifically, a user with Cosmos can use or develop an application belonging to a blockchain A, which can call data from a blockchain B.

Therefore, instead of focusing solely on building a blockchain, Cosmos looks further and anticipates future needs. Many people actually think so more blockchains will win in the current race. The challenge then becomes to get them to communicate with each other. A testament to its credibility, Cosmos boasts recognized cryptocurrencies using its ecosystem such as Binance Coin, Crypto.com or Terra.

Source / Adobe / Julien Eichinger

Finally, it’s good to know that Cosmos has its own wallet called Keplr,which allows a user to evolve in a completely decentralized way. Keplr is similar to the Maiar app with, for example, Elrond.

The basics of the Cosmos ecosystem

To understand the basics of the Cosmos ecosystem, it is a good idea to consider a blockchain as a three-level solution:

  • Application. As the name suggests, it is the application itself where the transactions are made (Cosmos SDK).
  • network. This is the level that controls the communication between blockchains.
  • Consensus. This is how nodes agree on the state of the network and validate transactions.

According to this degradation, the Kosmos ecosystem is composed of 4 main solutions.

Tendermint BFT

Tendermint can be seen as a package that gathers the parts Network and consensus of a blockchain. This generic package has been made available to developers at Cosmos. In other words, it simplifies the work for developers as they only have to take care of the coding of their application.

The connection between Tendermint and the application is through ABCI protocol. However, one of the great advantages of Tendermint is its compatibility. Thus, developers can code their application any computer language. This is an important difference with the Ethereum platform, where developers have to use the Solidity language.

What about existing blockchains that do not have the Tendermint “terminal”? Specifically, imagine that tomorrow it is necessary to connect the Bitcoin blockchain with the Cosmos ecosystem. Admittedly, this is more complicated, but the ecosystem still allows it thanks to its “Peg-Zone” principle, which we will not develop in this article.

Cosmos SDK

Cosmos SDK can be seen as one library of already coded modules. These modules can relate to management, investment or other activities. Developers can select the corresponding module and implement it directly in their blockchain without having to go through the time-consuming coding step. As the Cosmos ecosystem is open source, any developer can create modules to enrich the library.

Inter-Blockchain Communication (IBC)

As the name suggests, this is the protocol that allows transfer of tokens and data between different blockchains.

Names and areas

Without any particular solution, a simple connection between blockchains involves a very heavy infrastructure. Let’s take an example with 100 blockchains. If each blockchain is connected to all the others, it would take about 4,450 connections. We understand that as the number of blockchains increases, the need for connections will quickly become unmanageable.

This is why the Cosmos ecosystem has developed one architecture in the form of “hubs” and “zones”. “Zones” are sets of multiple interconnected blockchains. The “hubs” connect the areas together.

Source: Adobe / techdesign07

Cosmos (ATOM) cryptocurrency

ATOM is the name of the original token on the Cosmos platform. Currently, the price of the ATOM is around $ 30. This week, the launch of 21Shares by the first Comos ETP had allowed the price to rise 8% in 24 hours on January 20th.

However, the Cosmos crypto price has suffered the strong downward trend in the entire crypto market since Thursday. As a result, the price of ATOM has lost 26% over the last 7 days.

The capitalization of the Cosmos platform is $ 8.6 billion, making it the 20thth global crypto.

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 brings together more than 262 applications and the number continues to grow. In addition to contributing to dynamics of the ecosystem contributes to the arrival of new projectsattraction of Cosmos. In fact, for their funding, new projects often use airdrops. It may also be relevant to have a few ATOMs on hand in order to take advantage of these air droplets.

The projects at Cosmos are all very different. Below is a small selection of projects you should know about:

  • Osmosis : main DEX present on Cosmos.
  • THORChain : application that creates decentralized liquidity to feed DEXs like Uniswap or Sushiswap for example.
  • Secret network : application that protects the confidentiality of web 3.0 data by encrypting and encrypting user data.
  • Juno : opensource platform specializing in interoperability of smart contracts.
  • endurance : DeFi strike platform.
  • Download AI: application that uses AI to create bots that help users in DeFi. For example, users with download can apply stop loss to their orders placed on DEXs.
  • Akash network : decentralized and more flexible cloud service for businesses and individuals.
  • e-money : creation of stablecoins supported by European currencies.

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