Instead of big wins or nothing, you earn smaller but steady rewards. That balance helps you manage overall risk while still growing your stake. Both compounding and restaking can grow your potential passive income, but they may also add extra fees and complexity. A lot of projects join Cosmos, and with it the value of ATOM will be growing.
This allows for quick finality and high throughput, making it ideal for decentralized applications (dApps). It’s more than just another blockchain network, it’s meant to be an environment and toolset for a variety of blockchains to be built. The premier Cosmos adaptation is the Inter-Blockchain Communication protocol (IBC), which enables users to exchange digital assets and data across multiple sovereign, decentralized blockchains. Atom 2.0 is a comprehensive update to the Cosmos Hub that aims to revamp the network’s economic model and enhance the overall functionality of the ATOM token.
Start your NFT game development app
Ethereum has long been the backbone of decentralized apps, uk’s crypto mining experts but high fees and network congestion have limited its growth. Arbitrum changes this by moving most of the work off-chain while keeping Ethereum’s security. Transactions are bundled into batches and settled efficiently, cutting costs and speeding up activity without sacrificing trust.
Consensys Transfers 15% LINEA Tokens to Custodian with Insurance Coverage
Developers who build on the Cosmos Network don’t use Ethereum’s smart contract model to create their applications. For context, smart contracts are specialized blockchain programs that execute functions per pre-coded commands. The Cosmos protocol has garnered a lot of attention and supporters in the cryptocurrency space in recent years––primarily because the blockchain lets people create their own crypto projects. But it’s not just crypto enthusiasts and blockchain developers excited about Cosmos’s expanding ecosystem. In 2022, multi-billion-dollar ETF manager VanEck brought mainstream attention to Cosmos with a detailed report on the project. According to VanEck’s analysis, Cosmos’s advanced technology and ambitious goals have the potential to fundamentally change the digital assets space.
Is It Possible to Buy ATOM Instantly?
In the case of Cosmos, you have a number of different GitHub repos both from the main project to the Tendermint repositories. With Cosmos Hub 3 voters are now able to change how Cosmos works at a fundamental level, and those changes can be implemented without the need for a hard fork. Some of the changes that can be made include increasing or decreasing the inflation rate, changing the minimum threshold at which staking influences inflation, the community tax rate, and many more. The proposal passed with 41.1% of votes in favour versus 38.5% of votes against. Initially projected to fail, a late surge of votes and some validator reversals tipped the outcome in favour, The Block reported. In November 2023, a proposal was approved that sought to reduce the maximum ATOM inflation rate to 10% from about 14%, lowering staking APR to 13.4% from 19%.
- Cosmos is “the internet of blockchains,” touting a design that prioritizes interoperability among the multiple blockchains connected to its network.
- Cosmos crypto directly addresses common blockchain limitations like scalability and limited interoperability.
- Before launching Cosmos, cofounders Jae Kwon and Ethan Buchman developed a new proof-of-stake (PoS) crypto validation system called Tendermint.
- I will also analyse the use cases and adoption potential for the ATOM coin.
Alex Moskov co-founded CoinCentral in 2017 as its first Editor-in-Chief, growing it into a leading crypto publication with over 12 million readers. With a finance degree from the University of Florida and over a decade in the industry, he’s worked with top web2 and web3 companies on content strategy and business development. Zones in Cosmos are connected to the Cosmos Hub through the IBC, which enables information to flow at a rapid and extremely cost-efficient pace– most transactions on Cosmos cost $0.00. The Cosmos founding team split in 2020, but the project continued to gather momentum and it operates in a decentralized manner in a proof-of-stake network.
- Cosmos (ATOM) is a blockchain ecosystem that facilitates interoperability among independent blockchains.
- Get the latest updates, insights, and exclusive content delivered directly to your inbox.
- In PoS blockchains, validators secure the chain by pool staking coins and confirming new blocks.
- The recent ATOM 2.0 upgrade further expands this scope to offer additional benefits over interoperability.
- This approach is designed to be more energy-efficient compared to the Proof of Work (PoW) model used by other blockchain networks.
- Arbitrum changes this by moving most of the work off-chain while keeping Ethereum’s security.
What wallets support ATOM?
The Inter-Blockchain Communication (IBC) protocol powers seamless interoperability across more than 115 blockchain networks. The Cosmos network is designed to tackle the critical challenge of interoperability in blockchain technology. In this system, any node found to be operating in a malicious fashion is removed from the network, and its tokens are taken away. IBC will work best with blockchains that have high finality, such as Proof-of-Stake blockchains, but can also work with Proof-of-Work blockchains through the use of peg zones.
This resilience highlights the community’s sustained confidence in the vision and future of Cosmos. I have not seen this level of development on many other projects (including those with larger ICOs). This should further reinforce the notion that this is anything but a run-of-the-mill ICO and blockchain project. The Cosmos Hub AMM should have a strong philosophy of inclusiveness of users from different blockchains because its prime utility is inter-blockchain communication. Gravity DEX enables decentralized trading between any two Cosmos tokens — a $90 billion market that includes ATOM, BNB, LUNA, and CRO — or any of the galaxy of tokens beyond the Cosmos ecosystem. One of the most important changes made by Cosmos 3 is that governance proposals are no longer just a signaling mechanism.
Join forums, social media groups, and participate in discussions to learn from experienced users and developers. This interaction can deepen your understanding of the ecosystem and its potential. Cosmos stands at the forefront of cross-chain innovation, seamlessly linking independent blockchains through Tendermint consensus and IBC. The validator uses your staked tokens to participate in the network’s consensus process. This different types of forex brokers system, now widely adopted in blockchain networks, reduces energy consumption compared to Bitcoin’s Proof-of-Work model. Despite a period of fewer updates following the mainnet launch, ATOM has maintained a strong presence in the crypto world, consistently ranking within the top tokens by market cap.
For example, traders can’t send Bitcoin (BTC) to an Ethereum (ETH) wallet address because BTC’s blockchain doesn’t understand ETH’s coding standards. Before launching Cosmos, cofounders Jae Kwon and Ethan Buchman developed a new proof-of-stake (PoS) crypto validation system called Tendermint. Like other PoS systems, nodes on the Tendermint network lock a set cryptocurrency amount to validate transactions and earn crypto rewards.
The token’s help desk engineer salary price had a record low of US$1.66 in March 2020, but had a breakthrough year in 2021, when it reached an all-time high (ATH) of around US$44.38 in September 2021. Combining the freedom of decentralization with deep liquidity, advanced order types, a high-performance API, and instant market listings, dYdX empowers you to trade boldly and confidently. To learn more about trading crypto futures like perpetual swaps, explore our Academy.
This will increase the capital efficiency of staked ATOM, allowing it to be utilized while still being staked. The ATOM coin price prediction for 2029 estimates growth, with prices ranging from $21.48 to $25.29 and an average of $22.08. Its minimum and maximum trading prices are predicted to be $6.95 and $8.47, respectively.