There are over 10,000 dApps, tokens, and coins listed on popular exchange platforms with each uniqueness. Starting from the pioneer cryptocurrency coin, Bitcoin, used as a form of exchange and legal tender. Ethereum is used as a general smart contract and also as a form of legal tender. These developments were plagued with different setbacks ranging from their high energy consumption making it unsafe to the ecosystem, the poor efficiency rate, high transactional fees, and their immature governance issues.
There was the need to create a blockchain network that can offer more benefits than the pre-existing ones and also function without the setbacks that are plaguing the pioneer coins.
Cosmos came as that novel blockchain network with an architectural structure that addresses all these problems and even offers more than the predecessors. Cosmos contains a network of different blockchains called zones that are all powered by Tendermint BFT.
Tendermint BFT provides a high-performance and secure PBFT-like consensus engine were its strict fork-accountability clamps down the behavior of malicious actors. This Tendermint BFT algorithm is also suitable in perfect for scaling the public PoS scale.
It is simple, noted for its high and smooth performance, and strong fork accountability.
The Cosmos token is known as the atom token, a multi-asset distributed ledger also recognized as the only official staking token of the Cosmos Hub.
Atoms serve as a pioneer license for participants and actors to vote, validate, and even delegate to other validators. It can also be used to partake in financial transactions and used to pay transaction fees to mitigate spam.
It is also used as the reward system to reward delegators and validators after a job well done.
Who are the Founders of Cosmos (ATOM)?
The founders of the Cosmos network are Jae Kwon and Ethan Buchman in the year 2014, at that time these two individuals were still creating or developing the Tendermint consensus algorithm that would go on to power the Cosmos hub.
They collaborated with The Interchain Foundation (ICF), a Swiss non-profit that organization that helps provide financial resources to open-source blockchain projects.
The foundation held or organized a two-week initial coin offering (ICO) for the ATOM token in 2017 and raised over $17million while the Tendermint consensus raised over $9 million. This funding facilitated the development and improvement of the coin as more finding types, like the Series A finding, continued in 2019.
The two developers finally released the ecosystem white paper in 2019.
What Is Cosmos (ATOM) used for?
Versatile transaction fees payment
Unlike other ecosystems that mandate an ordained transaction fee payment mechanism and currency, Cosmos does not. Instead, the accept any token or combination of tokens as a payment for any transaction actors and users create on their blockchain.
The atoms can be used as legal tender directly or indirectly
The Cosmos Hub atom can be used to conduct financial transactions on the ecosystem or converted to more recognized cryptocurrency coins like Bitcoin, Ethereum for inter-ecosystem financial transactions.
What Is the Unique Point of Cosmos (ATOM)?
The voting system or mechanism is one of the few unique points of Cosmos.
The governance mechanism involves a set of actors known as validators whose collective efforts coordinate various changes on the blockchain such as variable parameters, software upgrades, and constitutional amendments.
This unionism is allowed by the laid down constitution in its smart contract that allows stakeholders to vote on issues most especially concerning issues theft and bug invasion for easier and quicker dissolving.
As mentioned, the validator pool in together to vote concerning a stipulated issue, failure to vote by any validator attracts a penalty.
The penalty consists of a ban of deactivation to the concerned validator for a time called AbsenteeismPenaltyPeriod, usually a default 1 week.
Before each proposal, a deposit named MinimalProposalDeposit tokens, which may be a single combination or a combination of tokens with atoms. The collated tokens may be given to the voters or burned off if the proposal is suspected to be a scam.
There are 5 voting options, voters are provided to choose any of the following while making a decision:
- Yes
- No
- YeawithForce
- NowithForce
- Abstain
Decisions are carried out when a handful amongst the majority choose either a Yea or YeawithForce or No or NowithForce. A Yea or YeawithForce majority signifies the approval of the issue while a No or NowithForce signifies the removal or disapproval.
The Constitution allows for 1/3 of the majority veto or goes against the 2/3 decision.
Gives actors, validators freedom
Unlike other blockchains that make their users at their mercy and prevent any form of financial free asides from being decentralized, Cosmos prices them wrong.
Cosmos allows validators to set their preferred form of exchange rate and transaction type as long as it does not exceed the BlockGasLimit.
The platform encourages wealth redistribution
The collected transaction fees are redistributed back to the bonded stakeholders according to the amount of their total bonded atoms every default one hour is known as the ValidatorPayoutPeriod.
Although the taxes and 2% of the funds go to ReserveTax to increase the reserve pool and tighten the security and value of the Cosmos Network.
How many Cosmos (ATOM) are in circulation?
There are approximately 203 million ATOM tokens in circulation out of a total supply of 260million. It also has a market capitalization value of $9.02 billion.
Is the Cosmos (ATOM) Network secured?
The Cosmos network has a well-secured framework. The security all depends on the validators and the choice of delegations by the delegates. In to encourage their vulnerability and tackle any possible successful hacking process, Cosmos has given the successful hackers the opportunity to the public the hacking process via a Report HackTx transaction with a title that says ‘This validator got hacked. Please send bounty to this address’
Once this happens and the Cosmos development team confirms it is successful, the validator and corresponding delegators would be renewed inactive. The affected actors will receive punishments like HackPunishmentRatio, which is a default punishment rate where every affected actor gets 5% slashed from their total atom ownership. HackRewardRatio is the complication of all slashed atoms given or rewarded to the bounty address of the hacker.
Finally, the validators must recover their remaining atoms by activating their backup key.
To prevent this rewarding feature from being abused to transfer invested atoms, the ratio or portion of vested and invested atoms of delegates and validators remains the same ReportHackTx and the hacker bounty may constitute of invested atoms if there are any.
How do I buy Cosmos (ATOM)?
For new and existing crypto traders who would love to purchase ATOM tokens, there are several ways and they are:
Through public exchange blockchain platform
Signup to be a member/user by providing necessary details about you like: name, e-mail, verified licenses, and profile picture.
Input the required details of the information engraved on your debit/credit card and get the tokens (ensure you are connected to a stable and fast internet connection)
If you use private financial platforms like Paypal and Payoneer, link your account to that on the website and pay to get the tokens.
After successful sign-up, wire your desired amount of US dollars and exchange them for ATOM tokens.
Through exchange
You can also exchange your other coins and tokens for an equal amount of ATOM tokens on the Binance platform or other recognized exchange platforms. Transfers your tokens to a private hot or cold wallet for extra security.
Which Cryptocurrency Wallet Supports Cosmos (ATOM)?
The PTPWallet platform supports many cryptocurrencies simultaneously such as ATOM token. Because of its vast use case, it has grown to become one of the most used platforms as it serves as an exchange and an engine to discover other cryptocurrencies. Additionally, users can easily use PTPWallet as their Cosmos (ATOM) wallet because offers a simple and interactive interface making it easy for people to navigate its system.
