CoinWind Academy Series: 3 Minutes to Know $ATOM
Cryptocurrencies are independently smart but collectively dumb. That’s where we have to consider the importance of interoperability, which is the key idea when we talk about Cosmos ($ATOM). Interoperability talks about the communication between blockchain networks, which is a very important concept in the future of cryptocurrencies. With many networks like BTC, ZIL, and DOGE operating independently on the cryptoverse, it is impractical to ignore the potential for them to come together to potentially fuel each other’s growth.
What is Cosmos?
Cosmos is a proof-of-stake blockchain that seeks to create an ecosystem of interoperable blockchain networks. It aims to create a new version of the internet that is open, scalable, and interconnected, which they are often referred to as “the internet of blockchains”.
Cosmos allows blockchains to communicate with each other and developers to customize and create their own blockchain. This is made possible by the zones and hubs embedded in the Cosmos network connected through the inter-blockchain communication protocol (IBC) alongside other tools.
While it might be a challenge to visualize what hubs and zones are on the network map. Hear me out while I break it down to you in simpler terms.
Think of it this way!
The cosmos hub is like an airport control tower that is responsible for communication and ensures the safety of arriving and departing planes. They will translate and moderate information while orchestrating the entire network to operate seamlessly. On the other hand, the zones refer to the independent blockchains which are like planes. Without the control tower, these planes would not be able to communicate in an effective and functional manner.
Cosmos Usages and Benefits
There are a few things you need to understand before you can see the big picture, we first have to understand the 3 main layers of the Cosmos Network:
- Application: This layer is in charge of updating and processing transactions
- Networking: Where blockchains can communicate with each other to facilitate transactions
- Consensus: An agreement can be met on the network
These 3 layers will then be combined and are accompanied by tools such as the Tendermint Byzantine Fault Tolerance (BFT) engine to allow developers to customize and create blockchains. There are downsides to huge networks like Bitcoin and Ethereum where they are known to be not energy efficient and with scalability issues. This created real issues like the skyrocketing Ethereum gas fees especially when the network is congested. With Cosmos, they not only solve scalability issues but also overcome usability issues faced by developers that find these applications too complex to build on.
Where can $ATOM be Purchased?
$ATOM can be bought on the following platforms:
- Huobi Global: Log in Huobi | Huobi Global
- Kraken: Bitcoin & Cryptocurrency Exchange | Bitcoin Trading Platform | Kraken
- Binance Exchange: 11.72 ｜ ATOMUSDT | Binance Spot
Stake $ATOM on CoinWind! Make your $ATOM work harder for you today with our astronomical APYs!!