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Crypto of the Week: Cosmos
Wrapping your mind around the ATOM token and Cosmos’ “Internet of Blockchains” isn’t easy, but it’s a necessary step if you’re looking to invest in this particular crypto asset.
Crypto of the Week: Cosmos
Wrapping your mind around the ATOM token and Cosmos’ “Internet of Blockchains” isn’t easy, but it’s a necessary step if you’re looking to invest in this particular crypto asset.
September has been a rocky month for the crypto market, but the Cosmos token has been one of the few, bright spots.
Here’s what you need to know about the ATOM token before you decide it’s worth adding to your portfolio.
What is Cosmos (ATOM)?
If bitcoin is about decentralised platforms for transactions and ethereum is about decentralised apps, then Cosmos represents an attempt to build a foundation for a decentralised network of blockchains. In some ways, Cosmos pitches as an argument that we’ve been approaching the problem all wrong.
The solution to the issues of scalability, security and speed that have plagued ethereum isn’t to build a better blockchain, it’s to accept that multiple blockchains are going to be necessary because no one network can do it all.
Rather than echo the promise of building a better blockchain, Cosmos describes itself as an ecosystem of blockchains.
“With Cosmos, blockchains can maintain sovereignty, process transactions quickly and communicate with other blockchains in the ecosystem, making it optimal for a variety of use cases,” the official website said.
In the future, Tendermint is predicting that interchain finance will become a major driver in the crypto world and that Cosmos can provide a platform for such transactions to securely take place.
Who made the Cosmos (ATOM) crypto?
The Cosmos ecosystem is managed by a company called Tendermint, founded by Jae Kwon, Zarko Milosevic and Ethan Buchman in 2014. A white paper for Cosmos was published by Tendermint in 2016, while the ATOM token introduced in 2017 via an ICO.
In terms of investors, Cosmos has attracted the attention of IOSG Venture, Yield Ventures, 1confirmation, Cardinal Capital and Paradigm.
What is the ATOM token used for?
There are four main things that the ATOM token can be used to do. It can be held, bought, spent or staked.
Similar to greener blockchains like Cardano, ATOM relies on a proof-of-stake consensus mechanism. Rather than mine new ATOM tokens, users forge them by locking a pre-determined amount of crypto into the system.
This process is called staking. When it comes time to add a new block to the blockchain, proof of stake essentially works like a lottery. The larger someone’s stake, the greater the chances that they will be selected to validate the transactions, add the next block in the chain and reap the rewards.
While the experience of staking is somewhat similar to something like a traditional term deposit, the technical mechanics are more akin to a home that runs on renewable energy selling their excess power back into the grid.
ATOM can also be used for governance purposes. Users who hold ATOM tokens are given a proportional vote and voice when it comes to network upgrades.
How much is the Cosmos (ATOM) token worth?
As of the 16th of September 2021, ATOM is priced at US$32.65 per unit.
Tallied up at that price, ATOM has a market cap of approximately US$7 billion.
For comparison, bitcoin (BTC) has a market cap of US$900 billion, while ether (ETH) sits in second place at US$377 billion.
Where can you buy the Cosmos (ATOM) crypto?
The ATOM token is available from most major and mainstream spot exchanges. This list currently includes:
- Binance
- Coinbase
- Kraken
- KuCoin
- Gate.io
- Bittrex
- Huobi Global
- Bitnumb
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