All You Need To Know About Cosmos (ATOM)
The idea of decentralization is fairly a fresh one; it is something that revolutionizes the way we interact with our financial tools and make transactions on a day-to-day basis. Have you ever considered the possibility of sending money digitally to someone else within a matter of seconds, not having to pay heavy transaction fees that you pay with conventional banking systems, and your money is encrypted in the most secure way possible? Yes, that is what blockchain technology and decentralization are all about.
It is a distributed ledger that allows people to interact with each other in financial terms, sending money from one point to another and doing all of that in a completely decentralized fashion. This means that no single government, state, or country has any say in how the policies are drafted for these transactions and who controls which part of the transition. There are multiple nodes in a blockchain, and each node is controlled by a validator who gives its computational power to the blockchain and validates the transactions that are taking place. All members of a blockchain must reach a consensus to mark a transaction as completed; otherwise, it won’t register with the blockchain system.
This is how sophisticated and over-the-top the whole thing is. Now that you have caught up with what blockchain is and how decentralization rules into the whole thing, you must be wondering how these blockchains are developed. It is not like you develop a system, a program, or an app, and you just invite a bunch of people to become participants in that blockchain, and that whole thing goes live. There is a proper system behind this; it just doesn’t happen out of the blue.
Today we will be talking about Cosmos, which is a predefined ecosystem of multiple networks and blockchain-oriented tools which help people for developing blockchain systems that are unique, interoperable, and Completely In Sync with their overall purpose of them being developed in the first place.
Cosmos has a definitive main chain that is known as Cosmos hub, and it is nothing but a central Ledger that incorporates all compatible blockchain systems, and these are termed as zones. Each and every zone can be customized to its extreme, which allows developers in question to design not only their own non-fungible tokens but cryptocurrencies, smart contracts, and many other features in settings for their respective blockchain systems.
A Brief Introduction to Cosmos (ATOM)
It is not that hard to develop a blockchain system; anyone can do so, provided they have the required infrastructure and a team of professionals helping in the transition. But scalability of the blockchain, along with its compatibility with various other systems, has always been a problem that needs to be solved on a priority basis.
Blockchain technology was inaugurated by Bitcoin back in the day, and it was the first functional blockchain that we got after multiple other cryptocurrencies having based on their own blockchain environment were released, and a lot of issues regarding compatibility and scalability have already been addressed.
Cosmos provides developers with a vast array of tools that they can use to solve scalability and interoperability issues regarding their blockchain systems; most of the tools that you would get your hands on are open source, which means that you have a more independent approach that you can use with these systems, trying to customize them to their absolute element regarding your own user preference and blockchain-oriented goals in question.
It has remained an extremely popular choice among developers in the past, and the feeling continues to trespass even to this day which is nothing but phenomenal. Let’s have a deeper insight into exploring the cosmos and why it remains the ultimate choice when it comes to developing blockchain systems and customizing them for the individual needs of cryptocurrencies and other decentralized projects.
Working Mechanism of Cosmos
Cosmos is a rather intricate set of tools that can be used to develop different blockchain ecosystems under the single hood of a primary blockchain that serves and controls different aspects of the project in question. There are different levels in zones present in each blockchain that can control multiple elements, such as a single node controlling cryptocurrencies, other nodes opting for smart contracts, and a third one working on non-fungible tokens, while all of these are interconnected with each other and are perfectly interoperable.
Cosmos works on a proof of stake consensus mechanism and incorporates rather an intricate customization of different blockchain systems that are called zones. A custom hub is known as the main chain on Cosmos, and it can transfer different assets along with the data that is present on them in between different zones and provides a consistent and dynamic layer of encrypted security that makes hacking or compromising the system out of the question.
‘Tendermint’ Is known as the consensus mechanism that controls multiple arrays and systems of cosmos, and it also works as a preferable UI system for users interacting with Cosmos. Any and all fees that apply to the development of a certain project can be paid via the traditional token of cosmos that is ATOM.
There are three different aspects to the Cosmos network, and these are as follows;
- Networking on Cosmos
Networking on the Cosmos is all about maintaining a standard layout to allow different transactions to take place simultaneously, plus confirming them one by one while allowing for perfect communication taking place between clients, node validators, and other different people.
- Applications on Cosmos
This security layer is in charge of updating the network regarding the current state of the transactions that are taking place plus any update that follows.
- Consensus on Cosmos
This pertains to the overall arrangement of nodes and how these are going to work in harmony to allow the addition of further transactions once the older ones have been validated and subjected to different blocks containing proper hash numbers in a blockchain environment.
Basically, you use cosmos to develop all these layers, and once you have developed them, hard-coded them regarding the very end result that you are after, and created a proper infrastructure, now is the time to combine all of these into a single standard working depiction of blockchain technology using open source tools and programs that are made available by Cosmos.
You can use these tools to test your blockchain under various circumstances; you can initiate multiple transactions to know how your blockchain would react to the load that will be breathing down its neck once transaction requests are piling up, or you can undergo a proper stress test to know just how incredible or fragile your current blockchain is and what you need to do to make it better.
Cosmos Zones
The custom blockchains can be developed, and once you are finished developing them, you can have them merged, and these can be used for multiple applications or to provide meaning to different features of your blockchain. Each and every zone embedded within the blockchain developed by the cosmos can authenticate transactions that are diverted towards that specific zone; not only these, but each zone is equipped with proper technology that can meet new tokens and carry out custom developments around different aspects of blockchain technology.
All these zones are perfectly interoperable with other zones, and the communication is properly streamlined; if a zone is sitting there free without any activity and another zone next to it is heavily bombarded with these transactions, and all those tasks that it needs to complete, then both zones can communicate with each other and share the burden. This way, your blockchain would not be hampered by all those requests for the validation of transactions that are just pending and breaking the integrity of the network.
There are different hubs in question which connect you to different zones working as the processing Centers for multiple blockchains simultaneously. Each hub is provided with dedicated processing power, and a fixed number of zones are also present there. If your blockchain requires so much processing power, then you can interconnect these hubs to work in harmony and provide your blockchain with the kind of processing power it requires for smooth functioning.
The most solid aspect of cosmos is the extreme functionality and customizability that it provides to the end customer; if you don’t like something, then you can change it and make it work for your project or things that you already had in mind.
Cosmos SDK
The Cosmos SDK is an open-source solution that has multiple software and programs embedded into a single development kit which you can use for the sake of developing your blockchain or customizing it to its absolute limits.
There are different modules that you can use to embed different consensus systems that best suit the working of your blockchain environment, and also when it comes to security, these tools can be used to enhance the encryption rate of your blockchain along with tapping into multiple security venues to make sure that a hacking attempt could be avoided and discarded right then and there.
Why you are using this unique toolkit, you would see that most of the overcomplicated processes involved in the development of new chain systems could be simplified to their absolute limits, and you can come about different standards which would help you to build a better blockchain that is not only more approachable but also extremely customizable.
You can include new features or traits within your blockchain system using multiple plugins that are made available to you free of cost and are open source which means that you can further manipulate them to work for you. The Cosmos blockchain builder is permissionless, which means that you don’t require the permission of a dedicated network manager to be able to use a variety of tools that are made available by the Cosmos blockchain builder.
What is ATOM?
ATOM is the standard crypto token belonging to the Cosmos, and it has been around as long as the cosmos has been. There are multiple use cases of ATOM and the most important ones are as follows;
- All users are required to pay their outstanding balance, which was incurred based on the computational power of cosmos that they have used over the years for the sake of powering their blockchain in ATOM. It is the standard crypt token of Cosmos, and that is why all business conducted on the platform must be paid and accounted for in ATOM as a payable cryptocurrency.
- ATOM also takes part in the main governance system of Cosmos, which means that if a user has an abundance of ATOM tokens on their hands, then they will be able to take part in many delicate matters of the platform and might come around a more stunning working parameter conducting decisions for the platform.
- The token is presented to validators who take part in the validation of transactions that are taking place on cosmos and all the blockchains which will be derived and developed from the platform. It means that each and every financial aspect of the cosmos is duly controlled by ATOM, which is the main crypto token of the platform.
An ICO was developed initially for the circulation of ATOM, but it is not like Bitcoin or other cryptocurrencies because it has an unlimited supply, unlike these other cryptocurrencies that come in a finite number. ATOM, on the other hand, is infinite, which means that it can be minted around the clock, and there is no limiting factor within the overall programming of Cosmos platform to limit the amount of ATOM available in circulation, which means that the coin is inflationary and it can’t be used as a hedge against inflation.
This seriously limits the use case for ATOM and available technologies because people who are typically interested in the idea of decentralization and cryptocurrencies usually seek these tokens as a hedge against inflation and put down large sums of investments so they can harvest a neat profit in the future, but that might not be the case with ATOM at all.
How Can You Purchase ATOM?
It is relatively easier to buy ATOM from any other crypto exchange out there, but preferably you should be using Binance because it is much more secure and elegant in terms of providing you access to cryptocurrencies at a more preferred and eclectic rate. To do so, you would have to sign in to your Binance account, and if you don’t have one, then you must create it before progressing any further. To do so, simply go to the official website of Binance and click on sign up.
You will be provided with a popup asking for your email address and other such information, which you have to provide. As Binance is a relatively famous crypto exchange having its roots deeply nested into multiple financial enterprises, you might have to complete ‘know your customer’ and ‘anti-money laundering’ forums so the exchange chemical from that you are a genuine customer and have nothing to do with money laundering at all.
Make sure that you complete these elements before progressing any further; or otherwise, you won’t be able to buy any cryptocurrencies from Binance at all. Once you have been provided with all this information, you would be asked to set up a password, make sure that you choose a rather stronger password that is difficult to crack and make sure that you remember it.
Once all that is done, you have to click on the sign-in button, and your account will be registered. You will be provided with a follow-up email to verify your account; after the verification process is done, your account is finally able to make purchases for different cryptocurrencies. Once you login into your Binance account, you would be met with a welcome screen asking for either a classic or advanced view; you can click on either of these depending upon your knowledge of the exchange and how often you have dealt with it in the past.
It is recommended that you go with an advanced view because then you would be able to see multiple cryptocurrencies listed, so you can take your pick depending upon the crypto that you are interested in. Search for ATOM and check out the current market rate for a single token; if the rate is acceptable to you and you want to purchase it, then enter the amount you would want to purchase. Once you have entered the number of tokens, the Binance crypto calculator will calculate the final price of this transaction in your preferred Fiat currency.
You would have to pay the balance purchasing total amount of ATOM to complete your purchase. Once money has been deducted from your bank account and Binance has already verified the transaction, the dedicated number of ATOM tokens will be transferred to your crypto wallet. The address of the crypto wallet should be given when making the purchase, and it must be a legit one for the transaction to get completed. This is how you buy ATOM from Binance, but you can preferably use any other books change of your own liking.
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