In a recent video, the popular Youtube channel Altcoin Buzz highlights the major reasons for investing in Cosmos (ATOM).
Cosmos’s Overview
In a nutshell, Cosmos bills itself as a project that solves some of the “hardest problems” facing the blockchain industry. It aims to offer an antidote to “slow, expensive, unscalable and environmentally harmful” proof-of-work protocols, like those used by Bitcoin, by offering an ecosystem of connected blockchains.
“Cosmos has a vision to become the bridge between blockchains through a set of open-source tools like Tendermint, the Cosmos SDK, and IBC. Moreover, these tools allow developers to build custom, secure, scalable, and interoperable blockchain-based solutions”.
ATOM, the platform’s native cryptocurrency, fuels the Cosmos Hub.
“In addition to executing smart contracts, ATOM is also used in completing transactions on the Cosmos network. Moreover, the token is a license for its holders to vote, validate, or delegate to other validators”.
Technology
Tendermint: The first reason for Cosmos’s massive potential is its Tendermint solution that allows developers to focus more on the development of a protocol and less on its complexity.
According to the crypto channel, Terdermint packages consensus and networking layers of a blockchain into a generic engine.
“It not only allows the consensus mechanism to reach finality quickly but also increases the performance of the protocols”.
Varied Consensus: The second key feature of Cosmos is the consensus mechanism of Cosmos which is largely dependent on the underlying applications.
If an application defines that validators will be selected based on the number of tokens they stake, then the Cosmos blockchain can be categorized as Proof-of-Stake.
However, the analyst also notes that if applications decide to restrict only a set of pre-authorized entities to validate transactions on the platform, then the blockchain can be considered permissioned or private.
Cosmos SDK: This is a generalized architecture that intends to create a suite of modules and allows developers to easily spin applications without writing the code from scratch.
Inter-Blockchain Communication Protocol (IBC): IBC allows developers to connect all the blockchains:
“Blockchains with different validator sets and applications can be made interoperable using Cosmos’s IBC protocol”.
Solving Core Problems
Scalability: One of the most prominent features of Cosmos is its two kinds of scalability vertical and horizontal to makes blockchain theoretically infinitely scalable.
“The network scales the blockchain and applications built on top of it using vertical scaling to process the maximum number of transactions per second”.
The analyst adds:
“However, at some point in vertical scaling, the transaction throughput of a single chain reaches a point which it cannot surpass. This is where horizontal architecture comes in; to move the transactions to multi-chain architectures”.
Usability: In terms of usability, with Cosmos SDK, developers can easily build entire application-specific blockchains that are flexible, scalable, and super-easy to use.
“The network allows the use of the Go programming language and a multi-layer structure which helps reduce the complexity of blockchain-based applications”.
Others
Besides those aforementioned reasons, it is notable that Cosmos is supported by a strong a company, team, and foundation.
Moreover, Cosmos has attracted a lot of partners that are developing challenging solutions on its ecosystem, including Binance Chain, e-Money, Kava, Akash network, Loom, OKExChain, Band Protocol, Persistence, and more.
In the near future, the team has plans to launch Gravity DEX to enable users to exchange cryptocurrencies from all over the interchain. Additionally, a Gravity Bridge will be formed to enable Cosmos-based assets to flow into Ethereum’s ecosystem.
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