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Cosmos logo

Cosmos

ATOM

6.31

0.00

Market Cap

$2.466121B

24h Volume

$233.724M

Volume/Market Cap (24h)

9.48

Circulating Supply

390.930671M ATOM

Total Supply

390.930671M ATOM

Interstellar Interoperability: Explaining the Cosmos Blockchain

The Cosmos (ATOM) blockchain has goals as vast as the galaxy. Often described as the “Internet of Blockchains,” this crypto project promises to serve as the foundation for web3, offering developers digital space to build secure, self-sufficient blockchains while enjoying seamless communication with other crypto protocols. 

Thanks to the Cosmos Network’s advanced and innovative infrastructure, creating an interconnected universe of separate blockchains is now possible under one software framework. Learn why the Cosmos price chart continues to attract attention in the cryptocurrency market and why more projects—including dYdX Chain—are integrating with this ecosystem. 

The history of the Cosmos blockchain 

Before computer engineers Jae Kwon and Ethan Buchman began working on Cosmos, they focused on building a scalable, energy-efficient consensus algorithm called “Tendermint.” After years of developing the Byzantine Fault Tolerance (BFT) Tendermint framework, Kwon and Buchman published the Cosmos whitepaper in 2016, in which they proposed using Tendermint’s technology as the basis for a decentralized platform composed of interconnected blockchains. 

Led by the Swiss-based non-profit Interchain Foundation, the Cosmos Network raised $17 million from its 2017 initial coin offering (ICO), and the Cosmos Hub blockchain launched in 2019. Following the Stargate upgrade in 2021, the Cosmos Network achieved its initial aim of seamless cross-chain communication (aka interoperability) with the introduction of the Cosmos Inter-Blockchain Communication (IBC) protocol, which makes it possible for blockchains built in Cosmos to communicate with each other. 

Today, hundreds of chains in sectors such as decentralized finance (DeFi) and GameFi are on the Cosmos IBC. Examples of Cosmos application-specific blockchains include the dYdX Chain, Osmosis, and the Cronos Chain.  

How does Cosmos (ATOM) work?

Tendermint Core is the base consensus algorithm in the Cosmos ecosystem and serves as the “glue” holding the entire network together. Using a Proof-of-Stake (PoS) model, computers (aka nodes) process transactions on Tendermint Core by locking (or “staking”) Cosmos’ native cryptocurrency—ATOM—onchain to validate transfers and receive crypto rewards. 

However, unlike other similar PoS blockchain (e.g., Ethereum), Cosmos splits the Tendermint Core consensus layer from the Application Blockchain Interface (ABCI), which provides third-party developers greater flexibility to create standalone blockchains while leveraging Tendermint’s security. 

Instead of writing smart contract programs into Cosmos’ blockchain, developers use open-source tools in Cosmos’ Software Development Kit (SDK) to build sovereign blockchains on the ABCI and link with other Cosmos-based chains through the IBC. Cosmos uses “hub” blockchains like the Cosmos Hub to link application-specific blockchains (aka “zones”) throughout the network for efficient and safe cross-chain transactions. 

Cosmos blockchain FAQs

What is the ATOM cryptocurrency?  

When traders ask for the Cosmos coin price, they’re referring to the blockchain’s native cryptocurrency, ATOM. Within the Cosmos ecosystem, ATOM serves three primary purposes:

  • Paying transaction fees

  • Staking to validate transactions, incentivize nodes, and secure Tendermint Core 

  • Voting for onchain governance proposals

As the Cosmos Network expands, finding the real-time Cosmos price on centralized and decentralized exchanges is easier. 

What is the Cosmos Inter-Blockchain Communication (IBC) protocol?

Implemented in 2021 with the Stargate upgrade, the Cosmos IBC is a cross-chain communication protocol that allows blockchains built within Cosmos’ ecosystem to communicate and transact value while maintaining their sovereignty. Thanks to the IBC’s advanced software, blockchains on Cosmos can create tokens and applications that fit their standards while accessing liquidity throughout the network.  

What is the Cosmos SDK?  

Think of the Cosmos Software Development Kit (SDK) as the “toolbox” for developers interested in building a blockchain on Cosmos. This software suite provides third-party programmers with pre-built modules, coding samples, and tools designed for the Cosmos ecosystem, which helps simplify and streamline the blockchain development process.

Disclosures

The content of this article (the “Article”) is provided for general informational purposes only. Reference to any specific strategy, technique, product, service, or entity does not constitute an endorsement or recommendation by dYdX Trading Inc., or any affiliate, agent, or representative thereof (“dYdX”). Use of strategies, techniques, products or services referenced in this Article may involve material risks, including the risk of financial losses arising from the volatility, operational loss, or nonconsensual liquidation of digital assets.  The content of this Article does not constitute, and should not be considered, construed, or relied upon as, financial advice, legal advice, tax advice, investment advice, or advice of any other nature; and the content of this Article is not an offer, solicitation or call to action to make any investment, or purchase any crypto asset, of any kind.  dYdX makes no representation, assurance or guarantee as to the accuracy, completeness, timeliness, suitability, or validity of any information in this Article or any third-party website that may be linked to it.  You are solely responsible for conducting independent research, performing due diligence, and/or seeking advice from a professional advisor prior to taking any financial, tax, legal, or investment action.

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