Cosmos

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Discover Cosmos's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Cosmos?

Cosmos (ATOM) is a decentralized network of interconnected blockchains designed to facilitate interoperability, scalability, and security. It allows for the transfer of assets and data between different chains, enabling a wide range of use cases. The native token, ATOM, is used for transaction fees, staking, governance, and as a bridge asset between parallel chains. Cosmos aims to create an "Internet of Blockchains" by simplifying networking, consensus, and application development, making it easier to build custom blockchain solutions.

How is Cosmos used?

Cosmos (ATOM) is a blockchain platform focused on interoperability between different blockchain networks. The ATOM token plays a crucial role in the ecosystem, serving several functions:

  1. Transaction Fees: ATOM is used to pay for transaction fees on the network, ensuring that transactions are processed efficiently and securely.

  2. Value Transfer: The token enables the transfer of value between different zones within the Cosmos network, facilitating seamless communication and interaction between blockchain applications.

  3. Validator Rewards: Validators who contribute to network security by validating transactions and adding blocks to the blockchain are rewarded with ATOM tokens. This incentivizes validators to maintain the integrity of the network.

  1. Governance: ATOM token holders have voting power in the governance of the network, allowing them to participate in decision-making processes for upgrades and changes to the ecosystem.

  2. Staking: Users can stake their ATOM tokens to support the network's security and earn rewards. This staking mechanism ensures that validators are incentivized to act honestly and maintain the network's integrity.

  3. Store of Value: Users can purchase and hold ATOM tokens as an investment, similar to other cryptocurrencies.

Overall, the ATOM token is essential for the functioning and growth of the Cosmos ecosystem, promoting healthy and sustainable network development while engaging the community in its maintenance.

How do I store Cosmos?

To store Cosmos (ATOM) tokens securely, you can use a variety of wallets that support the Cosmos network. Here are some options:

  1. Hardware Wallets:

    • Ledger: Ledger offers a range of hardware wallets, including Ledger Nano S and Ledger Nano X, which support ATOM tokens. These wallets are known for their high security and can be connected to your PC via USB or Bluetooth.
    • Other Hardware Wallets: Other hardware wallets like Ledger Nano S Plus and Ledger Nano X are also suitable options.
  2. Software Wallets:

    • Atomic Wallet: Atomic Wallet is a desktop and mobile wallet that supports over 1,000 coins and tokens, including ATOM. It allows users to send, receive, stake, and swap tokens.
    • Keplr Wallet: Keplr is a popular wallet in the Cosmos ecosystem, offering complete asset ownership and control over private keys. It has a user-friendly interface and supports staking and validator dashboards.
    • Trust Wallet: Trust Wallet is a mobile wallet that supports ATOM tokens and allows staking. It is known for its compatibility with the Binance ecosystem and has received positive feedback from users.
    • Leap Wallet: Leap Wallet is a versatile wallet that supports over 70 chains within the Cosmos network and offers portfolio management and DApp browsing features.
    • Cosmostation Wallet: Cosmostation Wallet is a universal staking wallet that supports multiple staking coins, including ATOM.
    • Metamask: Metamask, known for its Ethereum compatibility, offers support for Cosmos through the use of Snaps, enabling users to manage ATOM tokens and interact with Cosmos-based applications.
  3. Web Wallets:

  • Cosmostation Web Wallet: Cosmostation Web Wallet supports Ledger and allows users to manage their ATOM tokens and stake them securely.

When choosing a wallet, ensure you follow security best practices, such as keeping your recovery seed phrase secure and never sharing it with anyone.

How to buy Cosmos?

To buy Cosmos (ATOM) tokens, follow these steps:

  1. Choose an Exchange: Select a reputable cryptocurrency exchange that supports Cosmos (ATOM) trading. Some popular options include Uphold, Kraken, Binance, Coinbase, and MoonPay.

  2. Create an Account: Sign up for an account on the chosen exchange. This typically involves providing identification documents and verifying your email address.

  3. Deposit Funds: Add funds to your account using a supported payment method, such as a credit card, debit card, bank transfer, or Bitcoin.

  1. Buy Cosmos: Use your deposited funds to purchase Cosmos (ATOM) tokens. This can be done through the exchange's interface, where you can select the amount you want to buy and confirm the transaction.

  2. Store Your Tokens: Once you have purchased ATOM, you can store them in a wallet on the exchange or transfer them to a personal wallet for safekeeping.

Remember to research the fees and terms associated with each exchange before making a purchase. Additionally, always ensure you understand the risks involved with investing in cryptocurrencies.

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History of Cosmos

Cosmos (ATOM) was co-founded by Jae Kwon and Ethan Buchman in 2014 with the support of the Interchain Foundation (ICF), a Swiss company focused on developing secure, scalable, open, and decentralized networks. The project aimed to create a network of interconnected blockchains, enabling seamless data and token exchange between them.

Early Development and Funding

The initial funding for Cosmos came through an Initial Coin Offering (ICO) in 2017, which raised around $17 million. This funding supported the development of the Cosmos network, including the creation of the Cosmos Hub, a Proof-of-Stake cryptocurrency system with the native token ATOM.

Key Milestones
  • 2018: The Game of Stakes, a decentralized testnet, was launched to test the network. This testnet set a new standard for incentivized and decentralized testnets, leaving a lasting impact on the ecosystem.
  • March 2019: The official mainnet of Cosmos was launched, marking a significant milestone in the project's development.
  • February 2021: The Internet Blockchain Communication Protocol (IBC) was launched, further enhancing the network's interoperability capabilities.
Post-Launch Developments
  • 2021: Tendermint, a key component of the Cosmos ecosystem, announced a $20 million venture fund to boost development and growth within the ecosystem.
  • 2021: The Gravity DEX protocol was launched, enabling decentralized finance (DeFi) across multiple chains.
  • 2021: Emeris, a crypto app store, was announced, aiming to provide a one-stop portal for decentralized applications and DeFi services within the Cosmos ecosystem.

Cosmos has continued to evolve, focusing on improving user experience, interoperability, and the overall ecosystem. It has become a prominent platform for building custom blockchains and facilitating seamless interactions between different networks.

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How Cosmos works

Cosmos (ATOM) is a decentralized network designed to solve scalability and interoperability issues faced by many blockchain networks. It is often referred to as the "Internet of Blockchains" because it allows different blockchain networks to communicate and interact with each other seamlessly. Here's how it works:

Cosmos Hub and Zones

The Cosmos network consists of a central hub called the Cosmos Hub and various decentralized blockchain applications called zones. Each zone is autonomous and can execute functions such as authenticating accounts and transactions, creating and distributing new tokens, and making blockchain changes. The Cosmos Hub serves as a communication and security layer for all connected zones, keeping track of each zone's state and facilitating interaction between them.

Inter-Blockchain Communication (IBC)

The Inter-Blockchain Communication (IBC) protocol is a core feature of the Cosmos ecosystem. It enables secure communication, data transfer, and interoperability between independent blockchains. This protocol allows messages and tokens to be sent between chains in a standardized manner, ensuring that blockchains can communicate and exchange data without conflicts.

Tendermint Consensus Algorithm

Cosmos uses the Tendermint consensus algorithm to ensure that blockchains can communicate securely. This algorithm is used to reach consensus on the status of the Cosmos Hub and zones, ensuring that all connected blockchains are in sync.

Proof-of-Stake (PoS) and Validators

Cosmos employs a Proof-of-Stake (PoS) consensus mechanism, where validators are rewarded with ATOM tokens for contributing to network security by validating transactions and adding blocks to the blockchain. Validators are chosen based on the amount of ATOM they stake, and users can delegate their tokens to validators, promoting honest performance.

ATOM Token

The ATOM token is the native token of Cosmos and plays a crucial role in securing and stabilizing the network. It is used for transaction fees, value transfer between different zones, and as a reward for validators. Users can also purchase and hold ATOM tokens as an investment.

Staking and Governance

Staking ATOM is necessary to contribute to the economic security and governance of the Cosmos ecosystem. Users can stake their ATOM tokens to earn rewards and vote on upgrades and proposals that determine the future of the network. The typical annual percentage yield for staking ATOM is around 9.7%.

Development and Flexibility

Cosmos provides an open-source software development kit (SDK) that allows developers to build decentralized and sovereign blockchain applications called zones. This approach minimizes complexity and offers developers the flexibility to add any features they desire, making it easier to create new blockchain applications.

Overall, Cosmos is designed to create an ecosystem where blockchain protocols can collaborate and communicate without conflicts, improving the performance and security of existing blockchain networks.

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Cosmos's strengths

Cosmos (ATOM) has several strengths that contribute to its value and potential in the blockchain ecosystem. Some of the key strengths include:

  • Scalability: Cosmos is designed to improve scalability across different blockchains, allowing for faster and cheaper transactions. It achieves this through its use of the Tendermint consensus protocol, which can process hundreds of transactions per second with a block time of around one second.

  • Interoperability: Cosmos enables seamless communication and interaction between different blockchains, creating an "internet of blockchains." This is facilitated by its Inter-Blockchain Communication (IBC) protocol, which allows for the transfer of data and assets between blockchains without the need for a third party.

  • Security: The Tendermint protocol is Byzantine Fault Tolerant (BFT), ensuring that transactions can be confirmed even if there are malicious participants in the network. Additionally, the economic security of the Cosmos Hub is directly tied to the amount of ATOM staked, making it more secure as more tokens are collateralized.

  • Governance: ATOM holders have voting power in the platform's decisions, allowing for decentralized governance and decision-making.

  • Customizability: The Cosmos SDK allows developers to build custom blockchains with their own validators and governance, ensuring the safety and security of their networks.

  • Adoption: Cosmos has gained significant traction, with over 255 applications running on its network, including prominent names like Binance Smart Chain and Crypto.com.

These strengths position Cosmos as a robust and versatile platform for blockchain interoperability, scalability, and security.

Cosmos's risks

Cosmos (ATOM) carries several risks, including:

  1. Slashing Risk: Validators can be penalized for misbehavior, such as double-signing or downtime, which can result in a loss of ATOMs. This risk is mitigated by using a reliable staking service like Kiln.

  2. Tech Risk: The technology underlying Cosmos is complex and can be vulnerable to technical issues or bugs, which could impact the network's stability.

  3. Project Continuity Risk: The project's continuity is dependent on the continued development and maintenance of the Cosmos network, which could be impacted by various factors such as funding or team dynamics.

  1. Liquidity Risk: Staking ATOM tokens comes with a 22-day cooldown period, which means assets are temporarily unavailable, and liquidity is limited during this time.

  2. Market Volatility: Cosmos exhibits low volatility, but market fluctuations can still impact the value of ATOM tokens. Investors should be prepared for potential price drops or increases.

  3. Validator Selection Risk: Choosing a reliable validator is crucial, as delegating to a poorly performing validator can result in slashing and loss of ATOMs.

  1. General Market Risks: Cosmos is subject to broader market risks, including changes in volume and market capitalization, which can impact its value and stability.

These risks highlight the importance of careful consideration and thorough research before investing in Cosmos (ATOM).

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Did Cosmos raise funds?

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Cosmos’s team

  • Jae Kwon: Co-founder of Cosmos, who has been a key figure in the development of the network and its token, ATOM. He has been involved in significant decisions, including the proposal to reduce ATOM's inflation rate and the subsequent call for a hard fork, dubbed AtomOne.

  • Ethan Buchman: Co-founder of Cosmos, who has contributed to the development of the network and its vision for interoperable blockchains.

  • Noam Cohen: DevRel Lead at Interchain GmbH, focusing on developer adoption and education for the Cosmos Ecosystem, including the Developer Portal and the Interchain Developer Academy.

  • Thomas Dekeyser: IBC Developer Relations at Interchain GmbH, supporting developers working with IBC and focusing on onboarding and education.

  • Dr. Shaun Conway: Founder of ixo World, involved in the Cosmos ecosystem and contributing to its growth.

  • Federico Kunze Küllmer: Co-founder & Director of Evmos, a scalable blockchain compatible with Ethereum and part of the Cosmos ecosystem.

  • Sunny Aggarwal: Co-founder of Osmosis Labs, building the Osmosis Zone AMM laboratory on the Cosmos SDK and contributing to the development of the Cosmos ecosystem.

  • Adi Seredinschi: Product Lead for IBC at Informal Systems, maintaining Hermes, the leading IBC relayer, and operating Cephalopod Equipment, a premium validator and relayer in Cosmos.

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