Why Cosmos’ Atom Cryptocurrency Is Climbing

cosmos crypto news

The lack of interoperability between blockchains is yet another obstacle which Cosmos attempts to bypass. The core issue is described as being based on the fact that blockchain-based economies are siloed i.e. isolated from one another, and, as such, are incapable of transferring assets among themselves.

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In a nutshell, Cosmos bills itself as a project that solves some of the “hardest problems” facing the blockchain industry. This one was founded by Jae Kwon in March 2019, and it aims to create an “internet of blockchains.” Those are the networks behind all cryptocurrencies. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates. With the deployment of both Tendermint’s Byzantine Fault Tolerant consensus protocol and the IBC protocol, blockchains built on top of Cosmos retain their independence while interacting with other blockchains. Tendermint is a software company that is a core contributor to the Cosmos network.

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Then, from last month, Cosmos again marked a massive rally and registered a new all-time high of $32.14. Cosmos price today stands around $16 with a market capitalization of $3,487,549,088 and a circulating supply of 210,767,263 ATOM. The company’s Hyperblocks subsidiary runs validators that help secure the Cosmos blockchain.

  • If you are unfamiliar with the two projects, this tweetstorm is a good high-level explanation of the two projects and resources to learn about them.
  • That’s not a good idea if your token’s value drops due to increasing supply.
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  • For example, if your application requires a custom hash function, writing it on Ethereum would cost a lot of gas because the function needs to be executed on the EVM each time it is called.
  • However, due to low security, an attacker could 51% attack the Verge chain and send a double spend to the Ethereum blockchain, allowing the attacker to withdraw more ETH than he actually owns.

CoinDesk is an independently managed media company, wholly owned by the Digital Currency Group, which invests in cryptocurrencies and blockchain startups. DCG has no operational input into the selection or curation of CoinDesk content in all its forms. Cosmos bills itself as a project that solves some of the “hardest problems” facing the blockchain industry. It aims to offer an antidote to “slow, expensive, unscalable and environmentally harmful” proof-of-work protocols, like those used by Bitcoin, by offering an ecosystem cosmos crypto of connected blockchains. The project’s other goals include making blockchain technology less complex and difficult for developers thanks to a modular framework that demystifies decentralized apps. Cosmos Basics Cosmos is a decentralized network of independent parallel blockchains, each based on BFT consensus algorithms such as Tendermint. At the same time, the IBC Protocol serves to connect various zones and hubs in the network, as well as to support the exchange of value between the chains which are not homogenous.

Cosmos Atom Receives A Very Bullish Rating Friday: Is It Time To Get On Board?

By eliminating the Proof-of-Work and optimizing performance around the vertical scalability, the Cosmos developers hope to arrive at the point in which the application itself will become the only scalability bottleneck. Building decentralized applications on top of Tendermint is done by approaching the development as the blockchain application itself. One only needs to determine the transaction types and transition functions that the application in question actually needs, thus improving its performance in the process. On the other hand, there is no single “governance” process for the Cosmos Network. Each hub and zone has its own governance processes and there is no central set of rules that apply to the entire network of blockchains. When people talk about “governance of Cosmos”, they are referring to is the governance of the Cosmos Hub, the blockchain launched by the Tendermint team. The Cosmos Hub has a set of rules that lets anyone send a text proposal, and Atom holders are allowed to vote on it, where their votes are weighted by the number of Atoms they own.

The algorithm is fast and has been stress-tested in a live environment with 200 validators and 6-second block times during Game of Stakes. The Cosmos team also provides a software development kit with the Tendermint algorithm being usable out-of-the-box. This blog post is a good primer on consensus algorithms, and the features of Tendermint that make it useful. Polkadot Network ArchitectureParachains are blockchains within the Polkadot network. These chains have their own state machine, their own rules, and their own local block producers . Each parachain is essentially an independent state machine, and can utilize any type of unique functionality, consensus algorithm, transaction cost structure, and so on.

Differences Between Cosmos & Polkadot

However, critics argue the algorithm isn’t as secure or decentralized as Bitcoin’s proof-of-work method. In Cosmos, each individual blockchain is called a “zone.” Each blockchain is tied to the inter-blockchain communication protocol, which connects all the blockchains together. The live Cosmos price today is $30.71 with a 24-hour trading volume of $747.9 million. If you are attracted to unique features and want to learn how and where to buy ATOM, this guide is for you.

cosmos crypto news

By staking ATOM, the zone validators can join the hubs, with an option to have their stake reduced by misbehaving in their zones. Since one of the main tasks of the Cosmos ecosystem is to ensure interoperability, this needs to be ensured for both the Tendermint-based chains as well as for those which do not run on it.

Cosmos Price Prediction 2021

The coin jumped to $26.70, which was the highest level since May 7. The cryptocurrency has a total market capitalization of more than $5.8 billion, making it the 31st biggest cryptocurrency in the world.

cosmos crypto news

Scores are based on common sense Formulas that we personally use to analyse crypto coins & tokens. Past performance is not necessarily indicative of future results. Cosmos Network ArchitectureIn the Cosmos Network, instead of using a local/global model for security, every blockchain is independent and secures itself. Each blockchain runs its own consensus and the validators of each blockchain are responsible for securing that blockchain alone. The network uses a hub-and-zone model for interoperability, where zones can “send tokens” to other zones by routing through a hub . This protocol is called the IBC (Inter-Blockchain Communication), which is a protocol for sending messages between chains to represent token transfers. The IBC protocol is a work in progress, starting with token transfers and eventually any type of message passing between blockchains.

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Cosmos network uses an asynchronous Byzantine Fault Tolerant consensus model to validate transactions. As staking tokens, Atoms can be “bonded” in order to earn block rewards. The economic security of the Cosmos Hub is a function of the amount of Atoms staked.

cosmos crypto news

It serves as the main linchpin of the network, holding together the unrelated blockchains under one umbrella and preventing them from descending into a chaotic mode of operation. A key role here is played by the hub which is supposed to promote interactions between chains with the help of the IBC. Unsurprisingly, the wider crypto market is already responding positively to the aforementioned IBC development with the price of the ATOM token breaking through its all-time high beyond $10.

The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience – Cryptopolitan. The price of ATOM/USD has been between $35.66 and $37.95 for the past 24 hours, displaying significant volatility during that time period. Trading volume has risen by 7.72 percent and stands at $640 million, putting the market cap at around $8.14 billion; as a result, the coin is positioned in the #56 spot in CoinMarketCap’s market capitalization ratings. © 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Cosmos explains itself as a platform that solves few of the hardest issues facing the blockchain space.

Moreover, the first half of 2022 is going to show rapid growth, up to $180. With upcoming, partnership, and developments reaching $90 is quite optimistic in the price point of view but undoubtedly feasible for the near future.

In addition, we can see that ATOM recently performed a Descending Channel pattern. A descending channel is the price action that occurs in a downward direction through a falling parallel line. Cosmos’s native token ATOM reached its new ATH of $44.70 on Sep 20, 2021.

Why Cosmos’ ATOM Cryptocurrency Is Climbing – Motley Fool

Why Cosmos’ ATOM Cryptocurrency Is Climbing.

Posted: Wed, 20 Oct 2021 07:00:00 GMT [source]

We will also throw in other options similar to Cosmos, so you can build a better portfolio. Cosmos is currently moving toward connecting more blockchains with the IBC Protocol and deploying new dApps.

Staking on the Cosmos crypto network is intended to protect your ATOMs against inflation. If you were hoping to make money from staking Cosmos, we have bad news.

Author: Kevin Helms