Cosmos Crypto has several components to its protocol. First, there is the cross-chain bridge. Cross-chain bridges are validators that connect one blockchain with the other, and they launch a full node on the opposite chain to confirm a pre-determined amount. In some scenarios, several signatures can be used, and the original tokens are locked. Once these signatures are verified, the bridge verification tool unlocks the original tokens and destroys them in the cross-chain. The second component is the cross-chain transfer, which allows users to move their digital assets between two blockchains. Cross-chain transfer is made possible thanks to the native cryptocurrency, ATOM. ATOM pays transaction fees at the Cosmos main center, and is involved in the consensus process.
ATOM
The ATOM Cosmos crypto is an ambitious project aimed at creating a global network of peer-to-peer value exchange. This project operates close to the top 20 of MarketCap, with a capitalization of over 700 million dollars. Its ambitions are worth more recognition than its current market capitalization, however. The project is part of a movement to “structure” cryptocurrency projects, pushing for borderless interoperability between existing networks and creating a global crypto-Internet.
You can buy ATOM on many popular exchanges. Many choose to purchase their tokens on Coinbase, OKEx, or Binance. You can also find Cosmos trading pairs with a number of fiat currencies, including euros, USD, and others. Once you have an account with one of these exchanges, you can start trading. Then, you can use your new ATOM to purchase various items. Alternatively, you can use the ATOM to pay for goods and services in exchange for fiat currencies.
Tendermint BFT
Tendermint is a public and private blockchain ready system that handles the networking, consensus, and application layer. It is fault tolerant and helps nodes propagate transactions and agree on validators. It is also fault tolerant and scalable, and can process thousands of transactions per second. Developers can use the Tendermint API to create their own private blockchain. Its underlying technology is a distributed database that uses Proof-of-Stake to ensure the security and privacy of the blockchain.
The Cosmos platform runs on a dual-layer blockchain ecosystem that supports both consensus and networking. Its software, called Tendermint, separates the application and consensus layer, enabling developers to create custom solutions. The Tendermint BFT cosmos crypto platform includes the ATOM coin, which lets non-validators stake their own tokens and communicate with other applications using Cosmos. The Tendermint BFT cosmos crypto is a project from a for-profit Californian company called Tendermint. Its founder, Jae Know, has stepped down as CEO and is focusing on other projects.
Interchain Staking
One of the key benefits of Cosmos Crypto is Interchain Staking. Staking ATOMs at Cosmos earns you rewards through inflation, network transaction fees, and the potential for new issuance subsidies. Staking rewards are tied to network transaction fees and inflation, and increase as the Cosmos hub transactions volume increases. In addition to the rewards, Interchain Staking grants you the power to influence Cosmos hub policy decisions.
Liquid staking is another promising feature of the project. In its current V1 implementation, Liquid Staking generates representations of ATOM associated with specific delegators. The Lido team’s proposal decouples staking from a specific delegator, and allows users to keep staked tokens. This development is expected in the upcoming Rho upgrade. However, the Lido team’s proposal is based on Liquid Staking V1.
Hub-and-spoke model
The hub-and-spoke topology is the foundation of the Cosmos cryptocurrency ecosystem. As the system grows, it may eventually expand to thousands of blockchains. Hubs, or Tiers, are the most secure and connected to areas with high traffic. In the diagram above, Tier 1 Hubs are the dark blue shade in the middle. These hubs will connect to other tiers and sub-chains.
A hub application opens a channel with several other app chains. These hub applications exchange value and communicate securely. Hubs are essential for ecosystem players as they give them more security and privacy. The hub applications will have access to the network of other blockchains, making it easier for them to send communication. However, the hub applications will also be the primary node in the ecosystem. Hubs also enable new projects to connect to them.
Hubs and spokes work in a similar way. The hub is the central point of information, and spokes are the people who distribute it. Each spoke links back to the hub to drive traffic. A hub content is published first, and spokes are published continuously over a period of two or three months. Each spoke is published in a variety of formats and channels. The spokes then spread the hub content and promote it to drive traffic.