Generative Data Intelligence

A Guide to Cosmos: The “Internet of Blockchains”

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Cosmos offers a new approach to the layer 1 (L1) blockchain. Many L1s are focused on expanding their network so that they can offer different use cases, for example, DeFi and other decentralized apps (dApps). However, this approach can lead to congestion and result in high network fees for end users.

This is a project that offers an alternative to traditional blockchain technology. Cosmos is building an ecosystem of “application-specific blockchains” which can be customized for specific applications. The Cosmos hub serves as the launch pad for any new blockchain and can replicate other blockchains on the network. The Cosmos hub also provides a range of essential services like consensus and networking to new application-specific blockchains.

Furthermore, the cosmos community is built around modular and adaptable tools. The existing tools are available for developers but they can also create new tools. The ultimate cosmos vision is to create the “Internet of Blockchains”, which would be a network of decentralized blockchains that can communicate with each other.

What is The Difference Between Cosmos and Other Cryptocurrencies?

Cosmos is not like Bitcoin, Litecoin, or Ethereum. It aims to allow blockchains to interact and make transactions with each other easily. This also makes it easier for programmers to create applications. This can be achieved through a set of tools that are designed to help people build custom, scalable, secure, and interoperable blockchain apps quickly.

This unique invention offers great potential for investors and traders, but you need to be familiar with Cosmos if you want to succeed. We will focus on what Cosmos does and the potential dangers you need to be aware of.

Despite cryptocurrency’s 10-year tenure as marketable tokens, no digital asset has ever been infallible. Cosmos crypto is an exciting new realm that’s worthy of your attention.

Keep in mind that Cosmos is an open-source community project and everyone is welcome to build additional tools to improve the greater developer ecosystem.

So, here are some benefits of investing in Cosmos.

Capability to Scale More Than 1000 Transactions per Second

Cosmos, a blockchain that strives to break the boundaries and achieve network interoperability can process 1,000 transactions per second (TPS). This is comparable to Algorand, a rival blockchain initiative. Cosmos has designed a framework to allow ATOM to freely flow in the settlement of transactions.

Because Cosmos can quickly process transactions, there have been over 200 uses in less than three years since the mainnet launched. If Ethereum 2.0 is not fully functional by 2022 or 2023, many developers consider Cosmos to be a viable replacement.

Cosmos Engagement Is Extraordinarily High

There are many cryptocurrencies on the market. In May 2021, there were over 10,000 coins available, while in January 2022, there were over 17,000 coins on the market. This is largely happening because network effects are vital for the viability and sustainability of any crypto-related enterprise.

Cosmos has more than 160,000 followers on Twitter. The account @cosmos keeps fans informed about the progress of the project. Crypto enthusiasts can also find useful information to help them assess the project’s future.

Nearly 32,000 Cosmos members are also on Reddit. The Cosmos community was established on the 7th of June, 2013. Since its inception, users have debated the future of this project. Investors and traders who are skeptical about cryptocurrency might wonder where they can find and buy ATOM. However, they can easily find all their answers with the help of the Cosmos community.

The community platform also discusses topics such as the future price for ATOM, decentralized financial apps on Cosmos, and favorable Cosmos Network initiatives. There is also a discussion about the ATOM block reward, community pool, and ATOM block rewards.

ATOM is Consistently Liquid

A coin that lacks liquidity will trade in an extermination zone. But that’s not the case with ATOM. According to CoinMarketCap statistics, ATOM continues to produce high trade volumes.

ATOM recorded daily volumes exceeding $100 million in the first ten trading days of July. This is more than the market capitalization of other major crypto projects except for Algorand (ALGO), which had $2 billion in January.

Final Thoughts

Cosmos is not without risks. Other compatible blockchain systems are using increasing pressure. In addition, Ethereum remains the preferred smart contract platform for many developers. Although that’s the case for now, if ATOM proceeds to a higher level than Ethereum, ATOM might overtake Ethereum’s place by 2023.

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  • Source: Plato Data Intelligence: Platodata.ai
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