Cosmos crypto network focuses to bring all other cryptocurrencies together on the Internet of Blockchains. With this, it allows them to work together, making it easier to use and could bring more people to use the tech in return.
Let us further look into what Cosmos (ATOM) is and look through the gains and dangers of this network.
Jae Kwon establishes Cosmos in March 2019. The goal is to come up with an “internet of blockchains”. It considers to be the network behind all cryptocurrencies.
It attaches them by the use of Inter-Blockchain Communication protocol. The protocol uses grouping systems called Zones and Hubs. These are groups of blockchains that functions differently from each other.
The Zones connect to the other using the Hubs and when it connects with the Hub, it is be able to authorize access to the other zones linked to it. This makes the networks faster and avoids double-spending.
Above all, the system helps the Cosmos ecosystem to work harmoniously. The main goal is linking all crypto networks, so it leads a way to make sense of all those connections.
Aside from the above-mentioned functions, the Cosmos crypto dream doesn’t just congregate all other networks into one, but it also gives people tools to come up with new blockchains themselves.
As of this writing, ATOM sells for $36.02 and rose up to $44.70 on September 20th. The flow of supply was 281,987,685 ATOM and the market cap was $10,157,413,359.
The Cosmos Crypto Network converts cryptocurrencies into an integrated system so it becomes an easy use. It also has a proof-of-stake system that permits more than a thousand transactions per second.
However, Cosmos wasn’t made to provide a passive cash flow.
Most people are usually attracted to the yearly reward yield of roughly 10.28%. From this, you can conclude that it might be easy money.
When you stake on Cosmos crypto network, it intends to protect your ATOMs against inflation. Meaning, if you stake ATOMs, it assures that the price doesn’t change. You won’t have any losses, but you won’t have gains either. Holding onto ATOM tokens might just be worse.
Some people hold onto their cryptocurrencies with the hopes of the increase of its value in the nearest future. This might not be an option if the value drops because of increasing supply.
What makes it worst is it that cryptos work the same. The only light that we can see here is when it lets people make blockchains by themselves. Let’s take Polkadot (DOT) for an example.
To further elaborate, DOT network allows people to make parachains, blockchains that are connected via Relay chain. These have various functions and separate tokens.
In addition, it uses Kusama blockchain to test new upgrades before the application on the DOT network. It also is similar to Sagan, a testing blockchain built by Cosmos.
From the stated facts above, it makes it harder for people to opt for Cosmos crypto over other cryptos.
