Cosmos is a decentralized blockchain ecosystem that aims to facilitate interoperability between different blockchains. It uses an infrastructure called Tendermint to facilitate the creation of new blockchains that can easily communicate with each other. This allows developers to build decentralized applications that can use data and resources from different blockchains. The Cosmos ecosystem also includes a native currency, called the ATOM, which can be used to pay transaction fees and to vote for delegates who validate transactions in the network.
What is the Cosmos ecosystem?
Cosmos is like one big building with many different apartments. Each of these apartments is like a small town with its own currency and rules. But sometimes people from these cities want to trade things with each other. Cosmos is there to help them do that by using magical tunnels that connect these cities together. It’s like having a magic phone that lets you talk to your friends who live in different cities.
And there’s a guardian who watches over everything, making sure that the trades are fair and safe, it’s like you have a superhero who protects the trades and makes sure everything goes smoothly. And to thank him there are candies (ATOM) that are distributed to thank him.
In summary, Cosmos is an ecosystem that connects different worlds (blockchain) to facilitate exchanges between them, ensuring the security and accuracy of exchanges.
Cosmos and the IBC
IBC (Inter-Blockchain Communication) is a communication protocol for decentralized blockchains that allows different blockchains to connect and communicate with each other. It is designed to facilitate interoperability between different blockchain networks by allowing users to transfer assets and data between different networks reliably and securely.
In the Cosmos ecosystem, IBC is used to allow blockchains running on Tendermint (a high-performance consensus protocol) to communicate with each other. It allows blockchains in the Cosmos ecosystem to share resources and data with each other in a transparent and secure way, making it easier to build richer and more useful decentralized applications.
What are the differences between Ethereum and Cosmos?
Ethereum and Cosmos are both decentralized blockchain platforms that allow developers to build decentralized applications (dApps). However, there are some key differences between these two platforms.
Ethereum uses a consensus protocol called Proof of Stake (PoS) to validate transactions, while Cosmos uses a consensus protocol called Tendermint BFT, which is a proof-of-stake and stake consensus system.
Cosmos is designed to facilitate interoperability between different blockchains through its IBC (Inter-Blockchain Communication) protocol, while Ethereum does not offer a similar protocol, but solutions such as Polkadot or Cosmos are used to connect the blockchains.
Tendermint, used by Cosmos, can process thousands of transactions per second, making it a more scalable platform than Ethereum, which is currently limited to around 15 transactions per second.
Ethereum is generally considered a platform of choice for smart contracts and custom coins, while Cosmos is often used to create custom blockchain zones and for interoperability between different blockchains.
It is important to note that these differences do not make Ethereum or Cosmos better than the other, rather they have different functions and uses.
How does Cosmo work?
Cosmos operates using a set of protocols and tools designed to facilitate the creation and interoperability of decentralized blockchains. The main elements that make up the operation of the Cosmos blockchain are:
- Tender mint : is a BFT (Byzantine Fault Tolerance) type consensus protocol that allows nodes to agree on the order of transactions in the blockchain, even if some nodes are malicious or faulty.
- Inter-blockchain communication (IBC) : it is a communication protocol that allows the different Cosmos blockchains to connect and communicate with each other. It allows users to transfer resources and data between different networks reliably and securely.
- Cosmo Hub : It is a blockchain network that acts as a bridge to connect the different blockchains running under Tendermint. It helps create interoperability between different blockchains that have different protocols and consensus rules.
- ATOM : This is the native currency of Cosmos which can be used to pay transaction fees, to vote delegates who transact in the
Where to buy ATOM?
There are several ways to buy ATOM, the native cryptocurrency of the Cosmos ecosystem. Here are some popular options:
- Cryptocurrency trading platforms: You can buy ATOM on online cryptocurrency exchanges like Binance, Huobi, OKEx, Kraken, Bitfinex etc. You will first need to create an account on one of these platforms, verify your identity and then buy ATOM using another cryptocurrency such as Bitcoin or Ethereum.
- P2P Markets: There are P2P (peer-to-peer) platforms such as 1inch or Bisq that allow you to buy ATOM from other users using different payment methods, such as bank transfer, credit card or PayPal.
- Direct purchase (in ramp): There are sites that allow you to buy ATOM with a credit card or bank account, such as MoonPay or Ramp.
What are the best wallets to store ATOM coins?
There are several wallet options for storing ATOM coins, here are some of the most popular options:
- ledger : This is a physical wallet that allows you to store your ATOM coins securely by storing them offline, it is known to be one of the most secure wallets on the market.
- Cosmo wallet : This is an official Cosmos wallet, it is easy to use and allows you to manage your ATOM coins as well as the other assets of the Cosmos ecosystem. It is available on iOS and Android.
- Atomic wallet : This is a multi-asset wallet that supports a large number of cryptocurrencies, including ATOMs, and also allows you to trade cryptocurrencies directly from the wallet. It is available on Windows, Mac, Linux and mobile devices.
- Infinite wallet : This is a mobile wallet that supports many assets, including ATOMs, is easy to use and has an intuitive user interface. It is available on iOS and Android.
It’s important to note that the security of your wallet depends on how you manage your private keys. It is therefore important to store them safely, make regular backups and not share them with third parties. It is also recommended not to keep all coins in one wallet, to spread the risk.
This article contains affiliate links. When you use one of our links, we receive a percentage of the platform’s transaction fees, but we are not compensated for them. The protocol is fully decentralized and can be used by a hard wallet as well as a hot wallet. We have tested and used all the protocols that we present on our site.
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