$1.76

Cosmos is a project that aims to address some of the major challenges in the blockchain industry. It seeks to provide an alternative to proof-of-work systems like Bitcoin, which are often slow, expensive, and energy-intensive. The project offers an ecosystem of interconnected blockchains, making it easier for different networks to communicate. It also simplifies blockchain development through a modular framework, reducing complexity for developers. The Interblockchain Communication protocol facilitates interaction between blockchains, preventing fragmentation. Cosmos originated from Tendermint, founded in 2014, with a white paper in 2016 and a token sale in 2017. ATOM tokens are earned through a hybrid proof-of-stake system and secure the Cosmos Hub, the main blockchain, while also enabling governance.

The founders of Tendermint, which is central to the Cosmos ecosystem, are Jae Kwon, Zarko Milosevic, and Ethan Buchman. Kwon, though still listed as principal architect, stepped down as CEO in 2020 to focus on other projects. Peng Zhong has taken over as CEO, and the board of directors has undergone significant changes. Their objectives include improving the developer experience, fostering a strong community, and creating educational resources to increase awareness of the network's capabilities.

The Cosmos network is structured into three layers: application, networking, and consensus. The application layer handles transaction processing and updates the network's state. The networking layer facilitates communication between transactions and blockchains. The consensus layer enables nodes to agree on the current state of the system. Cosmos utilizes a set of open-source tools to integrate these layers and assist developers in building decentralized applications.

Cosmos stands out by addressing the fragmentation issue in the blockchain space, where many networks cannot interact. It aims to enable interoperability among blockchains. Described as "Blockchain 3.0," it focuses on user-friendly infrastructure. The Cosmos software development kit emphasizes modularity, allowing networks to be built from existing code components. This approach simplifies the creation of complex applications. Scalability is also a key priority, enabling higher transaction throughput compared to older blockchains like Bitcoin and Ethereum, which is essential for mainstream adoption.

ATOM has a fixed total supply of 260,906,513 tokens. At the time of writing, approximately 203,121,910 are in circulation. These tokens are not mined but are earned through staking. Private sales occurred in January 2017, followed by a public sale in April, raising $16 million at about $0.10 per ATOM. The token distribution allocated 80% to investors and 20% to All In Bits and the Interchain Foundation. Cosmos compares ATOM to ASICs in Bitcoin mining, as it represents economic capital required to participate as a network keeper.

Cosmos employs a proof-of-stake consensus algorithm. Validator nodes that stake more ATOM tokens have a higher chance of being selected to verify transactions and earn rewards. Nodes found to act dishonestly are penalized and may lose their staked tokens, ensuring network security.

ATOM is available on major exchanges like Binance, Coinbase, and OKEx. It can be traded against various fiat currencies, and users can learn how to purchase it with dollars or euros through guides on these platforms.