Cosmos is an ever-expanding ecosystem of many collective independent blockchains. Known as the “internet of blockchains”, each new independent blockchain created within Cosmos is powered by its native ATOM cryptocurrency.
The goal of Cosmos crypto is to create an ecosystem of networks. Data and tokens can be shared through these networks programmatically with zero intervention from any central party.
Every new blockchain created within Cosmos is tethered to Cosmos Hub – a proof-of-stake blockchain that’s powered by ATOM cryptocurrency.
Read on to know how Cosmos works and how to invest in it.
For the last two years, the ATOM crypto price has been hovering between $8 and $15 per coin. When the ATOM token was launched, it was the 38th largest crypto by market capitalisation. Since then, the price of the coin has gone up by around 110%.
The token trades on many popular exchanges, such as Crypto.com, Coinbase, Kucoin and more. You can begin investing in ATOM coin by following these simple steps:
In case you want to invest in other investment avenues like mutual funds to diversify your portfolio, invest in Navi Mutual Fund. Download the Navi app and start exploring a host of low-cost index funds. Start investing today!
Disclaimer: Mutual Fund investments are subject to market risk. Read all scheme-related documents carefully before investing.
The network of Cosmos crypto works via different technological blocks. All such blocks work together to achieve the needed function. Here are the blocks that the network operates on:
1. PoS (proof-of-stake) Consensus Mechanism
Cosmos utilises the PoS mechanism to validate transactions on its network. This mechanism allows crypto traders to stake some of their cryptos to earn passive income. This works as long as the coin belongs to that particular blockchain. Upon then, the system randomly chooses stakers to help validate blocks.
2. Networking Functionality
Any procedure facilitating communication between various platforms on the Cosmos network becomes its networking functionality. Cosmos crypto allows the inclusion of different functions from various sources. This is one of the primary aspects of the Cosmos Hub.
3. Housed Applications
Housed applications are the platforms that are used on the Cosmos network. These applications work to facilitate transactions on the network. This allows users to update their progress continuously while adhering to the PoS consensus mechanism. Each of the nodes on the Cosmos network is referred to as zones. Moreover, the Cosmos crypto maintains a record of each zone’s state.
That said, the Cosmos blockchain features three layers. They are tied together by open-source tools, allowing users to build blockchain applications. These layers include:
The in-house staking token in Cosmos is ATOM. Also known as Cosmos coin, ATOM is used to maintain interoperability between all zones in the Cosmos hub.
Unlike other cryptocurrencies, there is no limit supply of new Cosmos coins (ATOM). The network is designed to adjust the number of tokens created based on the amount of ATOM being staked.
ATOM is the native token of Cosmos. It powers the blockchain and is also used to validate transactions. Thus, you can use this token to earn passive income and conduct trading with other users.
You can easily earn ATOM cryptocurrency through a hybrid PoS algorithm and assist in securing the Cosmos hub. This crypto also plays a major role in the network’s governance.
Having said that, Cosmos compares its native token to ASIC machines that miners use to mine Bitcoin.
When it comes to the world of cryptos, there are always some pros and cons. Consequently, Cosmos cryptoextends the following benefits and drawbacks:
In simple terms, the future of Cosmos seems uncertain, mainly due to the extreme volatility in the crypto market. Additionally, various other businesses are trying to attempt a similar business model. This increases competition for the network.
However, the founders of Cosmos believe that the business will be able to pick pace in the coming times.
Having said that, this protocol has made several tweaks in recent times. It brings frequent updates and upgrades in its system, which is commendable. If it keeps on following this path, the future of Cosmos looks bright.
Cosmos crypto is typically a protocol that attempts to bring together several blockchains under a single roof. By being mindful of your investment, you can generate substantial passive income through its native token, ATOM.
Ans. Whether ATOM is a good investment or not depends on your personal goals and risk appetite. However, note that all cryptocurrencies come with a certain amount of risk. Thus, ensure to conduct your own research before making the decision to invest.
Ans. You can trade ATOM and earn substantial rewards if you can correctly speculate on the crypto’s price. Moreover, you can also stake the crypto to earn incentives from the network. These rewards are similar to crypto dividends, which offer more cryptocurrencies to users proportionately to the amount of crypto they stake.
Ans. Tendermint allows developers to build blockchain easily on the Cosmos network. The Tendermint Core, which is a key part of the system, keeps all computers in the network in sync. It also provides validation for transactions and secures the network.
Ans. Jae Kwon came up with the idea of Cosmos in 2014. He later teamed up with Ethan Buchman in 2015 to make a software development kit. After this, they created the Cosmos whitepaper in 2016. This project was then called Gnuclear, which was renamed to Cosmos in August the same year.
Ans. As of July 2022, the Cosmos cryptocurrency features a market cap of $2.76 billion. It is the 25th top cryptocurrency globally in terms of market capitalisation. The network features its native coin ATOM, which features a market dominance of 0.27%.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
Top 10 Cryptocurrencies to Invest In 2023 – Best Cryptocurrencies In IndiaCryptocurrency is a digital currency which can be used to purchase goods and services without the u... Read More »
8 Top Crypto Exchanges in India – Best Crypto Exchanges 2023Crypto assets are attracting more and more traders to explore the possibilities of their rising mar... Read More »
What is Crypto Airdrop – Its Types, Taxation, Benefits and How Does it Work?Crypto Airdrop is among one of the key strategies that have grown extremely popular since 2017 in t... Read More »
What is Pi Cryptocurrency: Network, Value, Price and FutureThe Pi Coin cryptocurrency has made the mining of digital currencies accessible for crypto enthusia... Read More »
What Is Tax On Crypto In India And How It Is CalculatedCryptocurrencies are decentralised digital currencies or assets based on blockchain technology, whi... Read More »
What Is Internet Computer Protocol (ICP) – Its Price, Investment Benefits And UsesThe ICP crypto is the native token of the ICP Blockchain network, which is used to reward the users... Read More »
What Is A Crypto Mining Rig – Its Setup, Types and How To Build OneA Crypto mining rig is a customised personal computer. It features all the essential elements of a ... Read More »
Polygon(MATIC): How Does It Work, Benefits and Price PredictionPolygon (MATIC) is a scaling solution for Ethereum, and MATIC is the name of the token that powers ... Read More »
What is GALA Crypto: Review, Benefits and How to Buy GALA Coins?GALA is an Ethereum-based cryptocurrency that powers Gala Games, a play-to-earn gaming platform. Th... Read More »
What is Bullish Engulfing Pattern – its Importance in TradingTrading in stocks is challenging. That’s why traders use several technical analysis tools, like c... Read More »
What is 1inch Crypto – How Does it Work and How to Buy it?The 1inch protocol is a decentralised exchange (dex) aggregator. Dex is a peer-to-peer (buyers and ... Read More »
What is Staking Crypto and How does It Work?Staking crypto means pledging your cryptocurrencies to the blockchain network to confirm trans... Read More »
Top 10 Chit Fund Schemes in India in 2023Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »
10 Best Gold ETFs in India to Invest in April 2023Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »
10 Best Demat Accounts in India for Beginners in 2023Creation of Demat accounts revolutionised the way trades were conducted at the stock exchanges. It... Read More »
20 Best Index Funds to Invest in India in April 2023What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »
Best Arbitrage Mutual Funds to Invest in India in April 2023Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »
10 Best SIP Plans in India to Invest in April 2023What is SIP? SIP or Systematic Investment Plan is a method of investing a fixed amount in ... Read More »
10 Best Corporate Bond Funds in India to Invest in April 2023Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »
10 Best Bank for Savings Account in India [Highest Interest Rate 2023]Savings account is a type of financial instrument offered by several banks. It lets you safely depo... Read More »