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Cosmos ecosystem: decentralised network of independent blockchains powered by the ATOM cryptocurrency

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The interest that people have developed in cryptocurrencies is at its peak. And this is unavoidable because of the profitability that digital currencies have shown over time. When there was a tremendous upsurge in the price, many people who invested became billionaires. What is Cosmos ecosystem?

Since digital currencies have gotten a strong foothold, it has been a trending subject of discussion among investors, individuals, and financial sectors at large. Some countries took a giant stride by adopting cryptocurrency as a mode of transaction to enhance financial efficiency. This approach has made it to become more strong and more popular.

What is Cosmos ecosystem?

Cryptocurrency, a decentralized digital currency that operates on cryptography- an advanced encryption technology feature is used for online transactions and trading. The leading crypto that brought about the noble transformation in finance and investment is bitcoin which became a reality in 2009. It became a point of attraction in 2013 as something worth investing in when it surged to around $266 per BTC. In subsequent months, it had a tremendous increase in thousands of dollars per bitcoin.

As a result of the attention that bitcoin has attracted in the financial world, more cryptocurrency was birthed, all known as alternative coins (altcoins). These coins range from Ethereum, Litcoin, dogecoin, ripple, Solana, and hundreds of others. There are other forms of cryptocurrencies, like stablecoin, NFTs, utility tokens, DeFi tokens, and others that have entered the cryptocurrency market. Some coins are performing well with a good market value despite fluctuations, while some have little to nothing in their market value.

Some crypto has become extinct as they find it impossible to drive the market force and attract attention that can skyrocket their price. Investing in crypto that does not guarantee a future can be risky to investors that invested in such coin.

As a global phenomenon that crypto has turned into, lots of opinions have come up on what the future of cryptocurrencies holds. Some opine that it will disrupt the traditional financial means of transacting, while some see it as just a furor that will soon go into extinction due to the rise and fall in price.

Aside from bitcoin, which is topping the crypto chart as the most valued digital currency, other coins have shown great future market value, which can yield tremendously on long-term investment. One reliable crypto worth considering for investment is cosmos crypto (ATOM). What you need to know before investing or trading this crypto will be expressly covered to put you in an excellent position to limit risks that may be involved.

A road map of Cosmos Crypto

Cosmos is an ecosystem that is developed for a decentralized future and is regarded as the internet of blockchain. Cosmos has smart contract functionality with a secured system that enhances smooth transactions and trading without the interference of middlemen. Cosmos built an ecosystem of blockchains aimed at proffering solutions to the complexity of the blockchain industry, such as the independent creation of blockchains with difficulties in data transfer. It aimed at achieving this through the Interblockchain Communication Protocol (IBC).

On the cosmos ecosystem platform, developers will be provided with a fluid network that grants access to interop among blockchains and dApps. Cosmos is not targeted toward prioritizing its network. Instead, it aims at promoting networks of the ecosystem that will give room to data transfer and programmable tokens. The cosmos network functioned on the hub and spoke model with every new independent blockchain, “Zones,” interacting with a single hub chain within the cosmos.

Cosmos has its native coin known as ATOM Token. This token is used in carrying out collective operations on the cosmos network. With the token, users can facilitate communication, scale, and interoperate between independent chains seamlessly. Developers can swap and initiate exchanges on the cosmos platform between blockchains and applications using Atom Tokens. Cosmos has one of the lowest transaction payments among the interop ecosystem in the decentralized system.

Cosmos crypto has a blockchain algorithm that serves as the center of its operation. As a result, users on the platform will take advantage of the digital currency and use it for other financial services, apps, games, and many more.

Developers who use cosmos crypto have lots of benefits that the platform has built to serve its users. For instance, through the smart contracts of ATOM, payments can be sent and received in the preferred currency. And this is because the conversion is done through the ATOMic swap in cross-chain.

With the multifunctional qualities that ATOM has, it gives space for an array of uses of existing apps. Security and safety of data and transactions are not excluded in this. In a solution with diverse layers, ATOM also guarantees accessibilities. Varieties of applications are made available on the cosmos platform, which provides users with a fantastic experience.

Cosmos has a user-friendly and independent algorithm for developer kits and features compatible with mobile applications. There are wide ranges of space on the ATOM’s sidechains that can accommodate countless DeFi apps. Users of the cosmos can engage in inter-trade through the use of DEXs.

How Cosmos crypto works

Cosmos network comprises three layers that make it stand out as an interblockchain ecosystem. These layers are application, networking, and consensus. The “application” is used in the processing of transactions and updating the condition of the network. “Networking” ensures communication between transactions and blockchains on the platform. With “consensus,” there is nodes agreement on the system of cosmos.

For blockchain application to be built on the cosmos system by developers, all these three layers are merged using a set of open-source tools such as;

Tendermint: this is the network part that makes it possible for developers to build blockchains without the need for coding from the start of the development. The cosmos software uses Tendermint BFT as an algorithm for the network of computers for security, validation of transactions, and assigning blocks to the blockchain. Through the application known as the Application Blockchain Interface, Tendermint BFT is connected through the protocol.

Tendermint Byzantine Fault Tolerance: this is the proof of stake (PoS) governance method that is core to Tendermint keeping the circulated network of computers at work. It also synchronizes with the cosmos Hub. ATOM needs to be staked on the platform so that validator nodes can power the blockchain and vote on any changes that come up. What is required to be a validator is to have a node at the first 100 nodes ATOM staking.

The amount of ATOM that users staked will determine the voting power to be gotten by validators.

Cosmos Hub and Zones: this is another set of open source tools that are used by the layers in the cosmos. The hub was the first launched blockchain on the cosmos network. Its purpose is to mediate between all autonomous blockchains on cosmos networks known as “zones.”

The zones in the cosmos can carry out their duties such as authenticating accounts, transactions, new token creations and distributions, and changes implementation on the blockchains. Through the track keeping on the system, the cosmos hub can initiate interop between all the zones available on the network.

Interblockchain Communication Protocol (IBC): this tool also plays a vital role in merging all the layers in the cosmos network in developing an independent blockchain on the system. Through IBC, zones get connected to the cosmos hub. With IBC, information travels freely in a well-secured packet between all the connected zones.

When a cosmos hub receives a connection from the zone, it becomes interoperable with other zones connected to the hub. And with this, data can be exchanged between applications, validators, and consensus mechanisms.

Cosmos SDK: Software Development Kit of Cosmos creates the avenue for developers to produce a blockchain of their own using the Tendermint consensus algorithm. Through the use of SDK built by cosmos into the network, complexity becomes minimized through functional features embedded in blockchains such as staking, governance, and tokens. Additional features can as well be added to the blockchains by developers from their created plugins.

Cosmos Network Tokens

Cosmos network has gotten two separate tokens that operate within the system of its blockchain, which is ATOM and Photons.

ATOM: this is the cosmos coin meant for staking and used for governance on the platform. Aside from other core uses of the token on the network, it can also be used by zone validators through staking to join the hubs.

Photons: this cosmos coin is used for transaction payments within the ecosystem. The hub validators can use the combination of this coin with the ATOM token to have their transaction fee paid.

The total supply of ATOM tokens is capped at around 236 million, with the token available on a different cryptocurrency exchange platform for purchase and trading.

The market value of cosmos and what its future holds

ATOM tokens can be volatile crypto with an excellent and high market value price. Although the crypto had its all-time low of $1.6 on the crypto chart in March 2020, it has found its way to moving uptrend in the market. It had $29.94 at its support level and $33.33 at its resistance level.

ATOM showed fantastic momentum in the crypto market at the beginning of 2021 with a surge of $25, which plunged to $17. Later this same year, it was at a bull of $32.14, which marked its all-time high in the market. ATOM token later fell to $30.26.

Cosmos crypto has gotten much speculation on its performance in the years ahead. There was prediction that before the end of the year 2022, Cosmos will reach a price level of $63 in its market value.

There have been predictions on what 2023 holds for the cosmos as well. If there are policies and regulations from the government, the coin might be faced with some uncertainties making it drop to a price of $60. However, it is predicted from analyses that by the end of 2023, cosmos crypto will trace its way to the uptrend of $75.

Further forecast on what the likely future of ATOM holds has been analyzed from the standpoint of technical and fundamental expert analysis. From the outcome, cosmos crypto is said to cross $90 by 2024, but it may start from $63 in early 2024.

For 2025, the price might be at $81 in the first half of the year and later have a tremendous upsurge of $105 before the year ends.

How to buy the cosmos (ATOM) Token

Purchasing of ATOM has been made very easy, it only takes a few steps to complete the process. The first approach is to sign up on any crypto exchange. You will find cosmos crypto on the most popular exchangers like Binance, coinbase, Huobi, and many reliable exchanges.

After registration, you must identify yourself through the KYC verification process. With a successful verification process, you can fund your account with your debit or credit card to purchase the crypto. However, for the safety of your fund and coins, you should have a 2-factor authentication done.

On the exchanger, click on the buy/sell tab and locate the ATOM you want to buy. Enter the USD amount of ATOM to purchase, and provide your card details to complete the process. After confirming your details, authorize the transaction, and you have successfully purchased the ATOM coin.

Investing in cosmos crypto can be a reasonable investment decision as the coin has proven reliable future forecasts from different crypto analysts. However, before you invest, you must examine your risk tolerance and conduct a personal analysis of the coin to know what is in for you as an investor.

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