The Cosmos (ATOM) Network Connecting Blockchains
In a nutshell, 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 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. Last but not least, an Inter-blockchain Communication protocol makes it easier for blockchain networks to communicate with each other — preventing fragmentation in the industry.
What Is Cosmos (ATOM)?
Cosmos coin (often referred to as ATOM) is a native virtual currency that works on the same principles as other digital currency, tapping into real scaling problems when connecting blockchains to communicate with each other. The ATOM Cryptocurrency is controlled by its holders like real money, except instead of purchasing goods and services with it, you are purchasing bits of data that have been agreed upon in the future. These bits of information include everything from the location of the planets to the population of earth. The Cosmos coin (ATOM) is completely backed by a smart contract that runs on the Metaverse, which is the Internet. The Cosmos ATOM coin can be used just like any other virtual currency on the internet, except instead of spending it on goods and services on the internet, it is spent to transfer data that have been agreed upon in the future.
Users are able to buy, lend, and spend their Cosmos coins, being a part of the smart contract decision making consensus. The Cosmos coin holders then make a certain percentage of a fixed amount of gas called stasis gas to the validator, who is then assigned a certain number of seats in a decentralized system that will be used for allocating bets, investing, and exercising other rights associated with the Cosmos network. This system also uses smart contracts that allow all the departments involved to transfer their data from one place to another with complete privacy, and which is automatically converted into a stake of gas called stasis gas by the validator.
The developers of the Cosmos ecosystem are able to change the supply and demand of gas that are available through stasis gas and stasis stake automatically. The developers are also able to change or allocate the percentages that are available to all the constituents. The developers of the ecosystem rely exclusively on this self-adjusting mechanism that enables all the constituents to properly self-adjust themselves. The developers also designed the ecosystem so that all the constituents can be constantly updated and redefined if needed to ensure that there is no deviation from the redefined distribution of the gas among all the constituents. This feature is crucial to any ecosystem because it guarantees a level playing field among all the validators.
