What is COSMOS (ATOM)?
Cosmos wants to create ‘The internet of blockchains.’ A network of blockchains that can communicate in a decentralized manner.
Cosmos is a network comprised of many independent chains, all of which utilize the byzantine fault-tolerant (BFT) consensus algorithms. Cosmos allows developers to build both permissionless and permissioned blockchains. The network launched with the release of its first blockchain, the Cosmos Hub, in 2019.
Back in 2017, the Interchain Foundation, a Swiss non-profit organization that funds open-source blockchain projects, contracted for-profit Tendermint, Inc. (which also utilizes the name All Bits, Inc.) to develop and launch the Cosmos software. Tendermint was launched in 2014 by Jae Kwon, who developed his own byzantine fault-tolerant (BFT) consensus mechanism and started the company to develop business-related opportunities for the algorithm.
Kwon co-wrote the Cosmos whitepaper and Tendermint raised $9 million to continue the project through a Series A funding round in March 2019.
What are the project's goals?
The team behind Cosmos plan to accomplish their vision via a set of open-source tools. The Cosmos network is composed of three separate technologies. The Tendermint protocol, responsible for governance; the Cosmos software development kit (SDK), an easy way to develop applications; and the Inter-Blockchain Communication (IBC) protocol.
The network supports token, data, and asset exchanges between blockchains. The Hubs that connect all these fluctuating blockchains require validators staking the ATOM currency, which will earn ATOMs for staking, thus the more connected the network becomes, the greater the potential for passive income to be generated through staking.
How much COSMOS/ATOM is on the open market?
ATOM has a large supply, there is 201,794,916 ATOM on the market, with a total supply of 259,579,519 tokens.
What the bears are saying
- Too long a lock-up? There is a minimum lock-up period to stake your tokens of three weeks. For the casual investor, this presents a problem through a lack of flexibility. The lock-up makes it hard if you want to sell up quickly.
- Hype: Arguably many cryptos full into this category; many enjoy hype they can’t possibly live up to.
- Infighting: Back in February 2020, there was a huge falling out between the co-founders, which started strangely. Jae Kwon accused Zaki Manian of blasphemy, arguing over whether this software was “godly” and demanding that Manian renounce his “self-professed godliness.” Yup, all true, not something from a Star Trek episode. For potential investors, this kind of stuff can be off-putting.
What the bulls are saying
- Cosmos SDK: Their platform to build apps is more user friendly and customizable than other solutions in the market. With the SDK, Cosmos wishes to reduce the development time of a new blockchain from years to weeks.
- Partnerships: ATOM has some fantastic partnerships with the likes of Binance and also with the Oracle Corporation and high profile cryptos such as OmiseGo.
With high profile partnerships and working with top companies to build on blockchain exclusively, there are many reasons for investors to be happy.
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This article is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice and before taking any action you should consult your own advisors. Note that digital assets such as cryptocurrencies present unique risks for investors. Please see our disclaimer regarding risks specific to holding digital assets before investing.
This content is correct as of October 2020
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