So, are you new to the market or are you considering investing in ATOM? Do you wonder how Cosmos (ATOM) works and why it is important to the crypto industry?
Worry no more, here is an overview of the network’s protocol and an outlook for the ATOM coin price in the future.
What is Cosmos (ATOM)?
Cosmos is a decentralized ecosystem of independent blockchains. Its creator hopes it is the foundation for the next generation of internet technology. Cosmos (ATOM) has been pursuing the goal of creating an interoperable platform that connects various blockchains for some time instead of joining in divisions between crypto factions, Cosmos brings them all together.
For this to work, it’s creator built two essential components to make this happen: Tendermint Core, and an Inter-Blockchain Communications (IBC) protocol. Together, they form the Cosmos Network that allows users to exchange assets and data across blockchains.
How Does Cosmos (ATOM) Work?
Cosmos uses different open-source tools to quicken interoperability between the blockchains in its network. Let’s look at a few of them.
● Zone
In this ecosystem (Cosmos), each network is known as a zone. Zones enjoy the full functionality of their network.
● Cosmos Hub
Once a zone is connected to the Cosmos Hub, it’s interoperable with every other zone in the network. The cosmos hub is where all the blockchains meet.
● Layers of Cosmos
This is the layer that handles processing transactions. This layer allows separate blockchains to communicate.
● Cosmos (SDK) software development kit
This is like a website builder, it allows developers to build blockchains without having to code them from scratch.
What is ATOM?
Atom is the staking coin used by the network, it is Cosmos’ native cryptocurrency. It is used to execute smart contracts and complete transactions.
Every time a block of transactions receives approval, new ATOMs are generated as rewards for network validators.
What’s Cosmos (ATOM) Future?
Cosmos is on its way to an essential and promising blockchain technology area. Experts believe in a future increase in the value of ATOM.
If you believe the experts, then the ATOM token should be an exciting investment for long-term investors. It is accepted in a wide variety of cryptocurrency exchange markets, including Binance and Kraken.
