Cosmos (ATOM) Complete Guide: Understanding the Internet of Blockchains
Introducing Cosmos (ATOM)
Cosmos is not just a simple cryptocurrency. It is an innovative decentralized network based on blockchain technology that acts as a bridge for different blockchains to communicate. Just as the Internet connects computers around the world, Cosmos connects various blockchains together.
One of the biggest problems in the current blockchain market is that each blockchain operates independently. Just like Bitcoin and Ethereum cannot communicate directly. Cosmos was born to solve this problem.
Background and History of Cosmos
The Cosmos project was started in 2014 by Jae Kwon and Ethan Buchman. At that time, as blockchain technology was developing, we recognized the problem of each project not being connected to each other.
In 2017, we raised about $17 million through an ICO (Initial Coin Offering), and finally launched the mainnet in March 2019. Since its launch, it has attracted the attention of many developers and investors, and currently, more than 200 projects are active in the Cosmos ecosystem.
In particular, famous blockchain projects such as Terra, Crypto.com Chain, and Binance Chain have been built based on the Cosmos SDK, proving its technological prowess.
Cosmos's innovative operating principle
To understand the structure of Cosmos, you must first understand the concept of 'Hub and Zone'. The Cosmos Hub acts as the central blockchain, and each independent blockchain is called a 'zone'.
The core technology, Tendermint consensus algorithm, uses a Byzantine Fault Tolerance method to ensure that the system can operate safely even if less than 1/3 of the network participants act maliciously.
This is the most core technology of Cosmos, and it allows for secure transfer of tokens and data between different blockchains. It works like a bank remittance system.
Also, through the Cosmos SDK (Software Development Kit), developers can easily create their own blockchain with a modular structure without having to build a complex blockchain infrastructure from scratch.
Various Applications of Cosmos
The potential applications of Cosmos are truly endless. Let's take a look at some of the most notable areas currently:
Decentralized Finance (DeFi): Assets from different blockchains can be managed and traded on a single platform. For example, it will be possible to receive Ethereum-based loans using Bitcoin as collateral.
Gaming Industry: A cross-chain gaming ecosystem can be built where in-game items or characters can be used in other games.
Supply Chain Management: The entire process from production to consumption of a product can be transparently tracked across multiple blockchains.
Social Media: A decentralized social network is possible where users fully own their data and can utilize it across multiple platforms.
Major Exchanges Where Cosmos Is Available
Cosmos (ATOM) is currently actively traded on major exchanges around the world:
Domestic Exchanges: Direct KRW trading is possible on Upbit, Bithumb, Coinone, etc. In particular, Upbit has the highest trading volume.
Overseas Exchanges: You can also trade on global exchanges such as Binance, Coinbase, Kraken, and Huobi. Overseas exchanges offer a wider range of trading pairs and advanced trading features.
Active Cosmos Community and Ecosystem
Cosmos has a very active developer and user community around the world. This is an important indicator of the sustainability and growth potential of the project.
Official Community Channels:
- Cosmos Official Forum: Technical discussions and governance-related discussions
- Telegram: Real-time news and community communication
- Discord: Technical exchanges among developers
- Reddit: Exchange of opinions and sharing of the latest news
New ideas and projects are continuously born through regular Cosmos conferences and hackathons. In 2023, the Cosmoverse conference will be attended by thousands of developers and investors from around the world.
Wallet Guide for Safely Storing Cosmos
Choosing the right wallet is essential for safely storing Cosmos. Let's take a look at the features of each wallet type:
Official Web Wallet (Keplr): The most popular Cosmos-specific wallet currently available as a browser extension. Staking function and DeFi integration are very convenient.
Mobile wallets: Cosmostation, Trust Wallet, etc. are available, and can be used conveniently anytime, anywhere.
Hardware wallets: Ledger Nano S/X supports Cosmos, and is the safest way to store a large amount of coins.
Things you must know when investing in Cosmos
If you are considering investing in Cosmos, carefully review the following:
- Technical Complexity: Cross-chain technology is not yet fully mature, and unexpected technical issues may arise.
- Increased Competition: There are many competing projects with similar technologies, such as Polkadot and Avalanche.
- Regulatory Uncertainty: Changes in cryptocurrency regulation policies of each country's government can have a significant impact on the market.
Things to Consider Before Investing:
- Technical development status of the project and progress of the roadmap
- Number of active projects in the ecosystem and developer activity indicators
- Overall cryptocurrency market trends and macroeconomic conditions
- Individual risk tolerance and investment goals
Above all, please adhere to the investment principle of ""don't put all your eggs in one basket."" No matter how promising Cosmos is, it is wise to allocate only a portion of your total investment assets.
Conclusion
Cosmos is an innovative project that can change the future of blockchain technology. However, as with all investments, sufficient study and careful judgment are required. We hope this article helped you understand Cosmos, and we support your wise investment decisions!