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For example, rather than sending 5 BTC from the Bitcoin blockchain to Ethereum, this method might lock the 5 BTC and issue 5 pegged tokens such as Wrapped Bitcoin (WBTC) on another blockchain. It allows DAPPS to be written and coded in any language, not limiting it to the language of consensus mechanism. This provides a lot of flexibility to the developers for creating applications in the language of their choice. COSMOS is a network that helps connect blockchains in a way that each blockchain is able to communicate, share files or transact with any other blockchain on the COSMOS hub. It solved the age-old puzzle of blockchain interoperability by allowing the network to connect seamlessly without any restrictions. Staking is the process of holding a crypto token in a wallet, while actively voting for changes on a blockchain.
After more than a decade since the first Bitcoin blockchain, we now have a variety of options when it comes to interoperable blockchain networks. Cosmos is perhaps one of the most popular choices out there, along with its Tendermint consensus mechanism and open-source developer tools. Let’s explore precisely why Cosmos has stayed a popular choice https://www.tokenexus.com/bitcoin-exchange/ and how it allows blockchains to work together easily. For the Cosmos Hub mainnet, the blockchain picks 100 validators from the top set of nodes staking ATOM, the blockchain’s utility coin. Voting power is assigned to each validator based on the amount of ATOM staked. A leader validator then proposes new blocks for others to vote on.
Cosmos (ATOM) Price
It is an important part of securing a blockchain, and it can be a great way to earn rewards without having to mine the coin yourself. To support this functionality, the Cosmos Hub is a Proof-of-Stake (PoS) chain that serves as the IBC packet routing hub for other chains within the Cosmos ecosystem. In turn, this allows for the scalability of the IBC protocol and interoperability between different blockchains. The Tendermint Core is a proof-of-stake blockchain that connects to applications through the Application Blockchain Interface (ABCI).
In addition, it can allow for a greater number of users to participate in the network. Fast forward two years and a new, ambitious project Cosmos ATOM have claimed the ticker ATOM. In December 2017, the project developer used Bitcoin Talk forum to announce that the coin would be forked and that there would be a coin swap. COSMOS Cryptocurrency price enthusiasts are still bullish on ATOM and are investing in the token hoping for a price increase in the coming years.
What Is Cosmos (ATOM)?
Billed as the “internet of blockchains” by its founding team, Cosmos aims to create the next version of the internet, one with blockchains at the centre of everything. Even the co-founder of Ethereum, Vitalik Buterin, regards Cosmos as an inspiration for the future what is atom coin of the Ethereum network. Cosmos calls itself the most customizable, scalable, powerful and interoperable ecosystem of connected blockchains. It’s a decentralized network of independent blockchains powered by Tendermint and other Byzantine Fault Tolerant algorithms.
- Cosmos was one of the first solutions available for creating interoperable blockchains and has remained a popular option.
- Blockchain usability and sovereignty are additional weak points which are targeted by Cosmos.
- The Cosmos Hub is powered by the Cosmos network’s native token, ATOM.
- That said, every Zone or Hub also has the power to refuse other connections to their own blockchain, an essential quality control mechanism.
This allows for communication between the Cosmos hub and all the zones present on the network. The Applied Blockchain Communication is very handy for developers as it allows them to develop areas of their blockchain in any language. The ABCI will then act to connect the Tendermint Core and the DSK for better communication.
How Do Hubs Operate?
This works through Cosmos’ own tool — Inter-Blockchain Communication (IBC), which it launched earlier this year. This technology also functions as a messaging protocol for blockchains, vaguely resembling what is found in the TCP/IP solutions. The lack of interoperability between blockchains is yet another obstacle which Cosmos attempts to bypass. If you’re a blockchain enthusiast, you must be an admirer of COSMOS core technology that helped address and solve the biggest blockchain bottleneck i.e interoperability. Moreover, the project has an impressive adoption rate accompanied by growth in its ecosystem. Keplr is a popular wallet that supports multiple currencies including ATOM, and it has an easy-to-use interface for staking.
