23 September 2021: Similar to the fundamental structure of Polkadot, Cosmos (ATOM) is also employing a model in which multiple chains are interlinked for the purpose of streamlining transactions and accessibility between all blockchains. Thus, Cosmos, while a more direct competitor network to that of Polkadot, is also a competitor to the likes of Ethereum, Cardano, and Algorand. This article will cover the basics of Cosmos, recent developments on the network, and the corresponding price action.
Introduction to Cosmos (ATOM)
At its roots, Cosmos is an ecosystem of independent blockchains that that are able to scale and interact with one another. This interoperabilty, similar to Polkadot, allows for the immense scalability of the network in terms of transactions without compromsing innovation or specialization as each blockchain can settle into a niche of its own. Cosmos was founded Jae Kwon and Ethan Buchman in 2014. Much of the development funding and support has come from the Interchain Foundation, a Swiss-based organization that assists with open-source, decentralized projects like Cosmos.
Cosmos is again hitting on an important, growing point within the crypoeconomy that is centered around the ability for different blockchains to effectively communicate with one another and support cross-chain activity. Like Polkadot, the Cosmos network makes this possible through the linkage of multiple blockchains under a single network head, allowing for interoperability, and thus scalability, to be signficantly easier than a chain like Ethereum.
What to Know
- Cosmos operates through its native token $ATOM
- Cosmos, similar to that of Polkadot, is employing the concept of the internet of blockchains
- $ATOM holders own & run Cosmos, making the network fully community owned & operated
Interoperabilty and cross-chain capabilities are becoming the norm within the crypto space. Obviously, many in the Bitcoin & Ethereum camps would disagree and back the idea that a single protocol will ultimately become the dominant player. However, the evidence within the rapidly expanding and developing cryptocurrency space points towards an inclusive, collaborative network of blockchains all existing simutaneously together. This is the future that Cosmos is already building for.
Cosmos has undergone numerous improvements and developments in the last several months, including the launch of Cosmos 2.0. Arguably the biggest piece of recent news coming out of the Cosmos corner is the announcement of coming smart contracts to the network. Co-processing protocol Summelier, founded by a core member of the Cosmos development team, will be partnering with Mysten Labs to increase the effectiveness or transaction processing by introducing smart contracts.
This will only further the expansion of the already growing Cosmos ecosystem and enhance the adoptability of the network over the long term. The Cosmos ecosystem is already immense, including over 250 apps & services containing over $100 billion in assets. With already highly competitive speeds and extremely low transaction costs, Cosmos is already in place to be a strong competitor to the Ethereum network in many different aspects, similar to that of Algorand and Polkadot.
Additionally, the introduction of Stargate - a series of major upgrades that enables full functionality of the network and allows, for the first time, inter-blockchain communication (IBC) across the network, has recently led to an enormous increase in hype for Cosmos. Once again, the market direction appears to be heading towards more blockchain interoperability as the space continues to diversify. This indicates Cosmos may be in a favorable development position with the successful implementation and launch of IBC. Cosmos is at the forefront of becoming an inclusive network moving into the future - a pivotal point for the maximum probability of network longevity.
Cosmos has previously been in a modest sideways trend for much of 2021 after the rally up from previous highs of under $10 to over $25 by February after the considerable gains made in the beginning of the year. Since then, the hype on $ATOM had come down signficantly, especially after the May 2021 market correction. Not so much anymore. Riding the plethora of good news and positive developments on the network, Cosmos has rocketed to all time highs in recent weeks.
The long term chart history of Cosmos is shown below:
Cosmos, like many other cryptocurrency assets, has been a rocketship since mid-July. Since the bottom that was printed over the summer, Cosmos is now up over 340% at its current price level of $42. Cosmos, although not quite at all time highs, is only 5% away from printing a new one. A new all time high would be achieved with a breakthrough above the $45 mark.
The recent price action of Cosmos is shown below:
Cosmos, simliar to Polkadot, is utilizing a development model that is prioritizing the diversity and inclusivity of a multi-chain network. This so called internet of blockchains allows Cosmos to have immense scalability compared to competitor networks like Ethereum, enable interoperability of many unique blockchains, and ensures that Cosmos users enjoy the most innovative, expansive developing technologies within the cryptocurrency space without having to worry about transversing across multiple disconnected networks.
While the success of such a model, or any model, within the cryptocurrency space remains an uncertainty, Cosmos is offering a different take on the duties of a decentralized network and is already employing the idea of an expansive, multi-blockchain internet that the future decentralized economy may call home. Diversity alongside decentralization promotes the most inclusive economic environment within crypto and is a formidable model for longevity in an ever-increasingly competitive landscape amongst start up blockchain projects.
Scalablity, interoperabilty, security, and longevity all will be fundamentally crucial to any network looking to stick around and Cosmos provides an solution that encompasses all these factors and more. Therefore, Cosmos is a project worth considering as a candidate for portfolio diversification.
Top Cosmos Resources
The Cosmos native token ATOM is available on most major cryptocurrency exchanges
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