What is Cosmos (ATOM)?
Cosmos (ATOM) is an interesting project that aims to build a decentralized, fast, secure and inexpensive blockchain interoperability system to expand the capabilities of this technology.
The Cosmos (ATOM) project is a project focused on providing an infrastructure capable of uniting several independent blockchains and making them interoperable with each other. The intention with this is to allow said blockchains, the value and the applications on them, to communicate with each other using a standard that guarantees said operations and that they can be carried out quickly.
Cosmos architecture and operation
As we've already discussed, Cosmos is actually a decentralized network of independent parallel blockchains. A network, where each blockchain is powered by its own consensus algorithm and interconnected by the Cosmos network. This can be complex to see, but the reality is that there is a whole work structure that makes this possible, and among these actors we can mention:
The Hub Cosmos, the center of Cosmos
The operation of Cosmos relies on a structure that is known as the Hub. The Cosmos Hub is actually a ledger that maintains the main history of the entire Cosmos network. In simpler words, it is a blockchain that stores the information of everything that happens in Cosmos and the actions that are carried out between the different actors that are interconnected to its network.
For example, if two blockchains interconnected to Cosmos share certain events, those events will be recorded in the central Hub of Cosmos witnessing what happened. At the same time, the results of those actions will be recorded in the respective blockchain that they have interacted with. In this way, the evidence of the interaction is recorded in such a way that there is no way to deny it. This is very useful, since this type of structure greatly facilitates that, for example, DApps (Decentralized Applications) of different blockchains could communicate with each other.
In any case, the Hub is a history of events between the participants of the Cosmos network. This history is possible thanks to the existence of the Cosmos blockchain communication protocol (IBC for Inter Blockchain Communication). The job of this protocol is to provide a standard connector that allows blockchains within Cosmos to send messages to each other and share information, keeping a complete record of such messages within the Hub.
In this way it is possible to enable exchanges in a completely decentralized way between all blockchains. The scope of this idea is so wide that Cosmos is known in the crypto world as "the Internet of the Blockchain"
The areas of the Cosmos network
A zone in the Cosmos network is an independent blockchain that exchanges IBC messages with the Hub. From the Hub's perspective, a zone is a multi-asset dynamic membership multi-signature account that can send and receive tokens using IBC packets. Like a cryptocurrency account, a zone cannot transfer more tokens than it has, but it can receive tokens from others who have them. A zone can be designated as a "source" of one or more types of tokens, giving it the power to inflate that supply of tokens.
To avoid double-spending attacks in the zones, the Cosmos consensus protocol limits the possible actions within these zones and the Hub, especially if there are zones with a compromised consensus in some way.
Tendermint, a high speed algorithm
Of course, the breadth of what Cosmos can do requires a high-speed consensus algorithm capable of handling the flow of information between different blockchains. To achieve this, Cosmos makes use of a Proof of Stake (PoS) algorithm designed for speed and high scalability, the Tendermint algorithm.
Tendermint, is an algorithm created by Jae Kwon himself in 2014, with the intention of presenting a high speed and security algorithm. In fact, such an algorithm is designed to be a high-performance BFT SMR (State Machine Replication) platform that replicates services that can then be simulated as deterministic and non-random state machines. This basically means that Tendermint Core was built to copy specialized servers (or states). This is done through a special machine that copies servers and distributes them throughout the global Cosmos network. This process enables Tendermint Core software engineers to reproduce the blockchain on "state" machines around the world.
Outcome? The use of Tendermint in Cosmos is vital, because the interconnection of several blockchains in the same infrastructure takes scalability demands to a new level, and Tendermint's BFT SMR framework is perfect at this point. A good example of this is that the tests carried out on Tendermint allowed it to reach more than 10,000 transactions per second (10,000 TPS) and its scalability grows with the increase in the number of its nodes. Hence, projects such as Cosmos, Kava, Terra, BAND Protocol, Aragon, Hyperledger, Ethermint, Oasis Labs, IRISNet and even Facebook's Libra (now known as Diem) among other projects use Tendermint to offer high performance in their P2P network.
ATOM, a token for the platform
On the other hand, Cosmos also has a native cryptocurrency or token named ATOM. Said token has the fundamental role of creating an economic ecosystem that encourages the work that sustains the entire network. First, the Cosmos network depends on the work of 100 validators, who are responsible for using the Tendermint protocol to carry out the process of generating and validating blocks within the network. This limit is an initial limit that can be altered by the governance of the protocol at any time.
The work of the validators in any case must be rewarding, and as in most blockchains, that reward is given in native tokens, in this case, ATOM tokens. But this selection of validators respects the rules of any PoS consensus protocol, so to be chosen you must have a significant staking to be able to participate. This means that validators must store and lock balances in ATOM to obtain such participation.
Along with this, the ATOM token serves as a mechanism to prevent misuse of the network, that is, to discourage spam, as well as to access network services and as a governance system within the network, since the holders of ATOM tokens can cast votes in proportion to their staking in ATOM.
On the other hand, the issuance of ATOM tokens is unlimited, and the generation of them by the validators is decided dynamically by the network according to the guidelines of the governance of the protocol. Currently, block rewards are calculated at 7-20% of the annual return on the total ATOM supply. Additionally, transaction fees are added, which add up to all of the rewards for validators. The generation of blocks on the network happens every 5-6 seconds, being one of the fastest blockchain networks in this ecosystem.
Fotons (Photons), a second token for the platform
Apart from ATOM tokens, there are also Photons (Photons) in Cosmos. These are a type of token with much more liquidity and speed than ATOM. This second token is used to carry out transactions between all the zones that are connected to the Hub.
ATOM tokens are designed to be linked in the Hub. This means that they are not ideal for paying fees or moving
Characteristics of the Cosmos Network
Among the main characteristics that we can identify in Cosmos Network, we can mention:
Interoperability
The entire network has been designed thinking about facilitating the interoperability of Cosmos with other blockchains, and of those blockchains as a whole. With the Zones, Cosmos can create bridges that communicate a specific blockchain with the other set of zones connected to the network, and thus increase its interoperability stage.
Thus, for example, a Zone with a connection to the Ethereum network, could use Cosmos to connect to a Zone connected to the EOS network, to exchange tokens, operations and more using Cosmos with an interconnection bridge between them.
Scalable
The use of Tendermint within Cosmos makes it very clear that this project can scale in ways that other projects cannot. In fact, the scalability of Tendermint is indefinite since the greater the number of Zones and validators within them, the greater the capacity of the network to scale.
Decentralized
Cosmos is based on the principles of cryptography, sound economics, consensus theory, transparency, and accountability to serve as a new foundation for our future financial systems.
You can use Cosmos as a test for a new cryptocurrency design, an upgrade to an existing cryptocurrency, as a medium for decentralized exchange, or as a platform for scalable smart contracts.
Cosmos is not just a distributed ledger, and the Cosmos Hub is not the center of your universe. Anyone can use this protocol to create their own Hub to compete with Cosmos in a free market for blockchains.
Analysis Tecnichal
Here we see a cumulative zone that is trying to break to the upside, although what is surprising is that this looks a lot like SOLUSDT
Here we see the similarity
The bulls are managing to keep the price above RSI level 52 which indicates that they have enough strength to continue this higher.
The bulls on the MACD indicator are managing to rumble both averages to the upside, giving signs of a possible bullish at level 4
If we realize we are testing the EMA20 days, which could indicate a possible bullish if they manage to keep the bulls above these, on the contrary if the bears manage to lower it to the SMA50 we may have strength but in reality it is more likely to go to test the 18 usdt
Our liquidity of preference must be between 18 to 16 dollars
Atom possible rise we can see that in the PAR BTC is recovering ground adding that the indicators are gaining strength and we are testing the moving averages
In the event that the bears manage to pull the price, we could consider the formation of a W pattern due to the order book and MB
If we notice after several bearish candles and a small bullish rally, we have a dip and a possible rise then we can have a fairly good possible rise. As it is forging a new bullish rally in Sequential MD
Let's hope the bulls keep the price above the moving averages and above the 61.8% Fib level which would suggest that the bulls have the upper hand and we could see a big rally with a lot of potential.
Thanks you.
Cosmos (ATOM) is an interesting project that aims to build a decentralized, fast, secure and inexpensive blockchain interoperability system to expand the capabilities of this technology.
The Cosmos (ATOM) project is a project focused on providing an infrastructure capable of uniting several independent blockchains and making them interoperable with each other. The intention with this is to allow said blockchains, the value and the applications on them, to communicate with each other using a standard that guarantees said operations and that they can be carried out quickly.
Cosmos architecture and operation
As we've already discussed, Cosmos is actually a decentralized network of independent parallel blockchains. A network, where each blockchain is powered by its own consensus algorithm and interconnected by the Cosmos network. This can be complex to see, but the reality is that there is a whole work structure that makes this possible, and among these actors we can mention:
The Hub Cosmos, the center of Cosmos
The operation of Cosmos relies on a structure that is known as the Hub. The Cosmos Hub is actually a ledger that maintains the main history of the entire Cosmos network. In simpler words, it is a blockchain that stores the information of everything that happens in Cosmos and the actions that are carried out between the different actors that are interconnected to its network.
For example, if two blockchains interconnected to Cosmos share certain events, those events will be recorded in the central Hub of Cosmos witnessing what happened. At the same time, the results of those actions will be recorded in the respective blockchain that they have interacted with. In this way, the evidence of the interaction is recorded in such a way that there is no way to deny it. This is very useful, since this type of structure greatly facilitates that, for example, DApps (Decentralized Applications) of different blockchains could communicate with each other.
In any case, the Hub is a history of events between the participants of the Cosmos network. This history is possible thanks to the existence of the Cosmos blockchain communication protocol (IBC for Inter Blockchain Communication). The job of this protocol is to provide a standard connector that allows blockchains within Cosmos to send messages to each other and share information, keeping a complete record of such messages within the Hub.
In this way it is possible to enable exchanges in a completely decentralized way between all blockchains. The scope of this idea is so wide that Cosmos is known in the crypto world as "the Internet of the Blockchain"
The areas of the Cosmos network
A zone in the Cosmos network is an independent blockchain that exchanges IBC messages with the Hub. From the Hub's perspective, a zone is a multi-asset dynamic membership multi-signature account that can send and receive tokens using IBC packets. Like a cryptocurrency account, a zone cannot transfer more tokens than it has, but it can receive tokens from others who have them. A zone can be designated as a "source" of one or more types of tokens, giving it the power to inflate that supply of tokens.
To avoid double-spending attacks in the zones, the Cosmos consensus protocol limits the possible actions within these zones and the Hub, especially if there are zones with a compromised consensus in some way.
Tendermint, a high speed algorithm
Of course, the breadth of what Cosmos can do requires a high-speed consensus algorithm capable of handling the flow of information between different blockchains. To achieve this, Cosmos makes use of a Proof of Stake (PoS) algorithm designed for speed and high scalability, the Tendermint algorithm.
Tendermint, is an algorithm created by Jae Kwon himself in 2014, with the intention of presenting a high speed and security algorithm. In fact, such an algorithm is designed to be a high-performance BFT SMR (State Machine Replication) platform that replicates services that can then be simulated as deterministic and non-random state machines. This basically means that Tendermint Core was built to copy specialized servers (or states). This is done through a special machine that copies servers and distributes them throughout the global Cosmos network. This process enables Tendermint Core software engineers to reproduce the blockchain on "state" machines around the world.
Outcome? The use of Tendermint in Cosmos is vital, because the interconnection of several blockchains in the same infrastructure takes scalability demands to a new level, and Tendermint's BFT SMR framework is perfect at this point. A good example of this is that the tests carried out on Tendermint allowed it to reach more than 10,000 transactions per second (10,000 TPS) and its scalability grows with the increase in the number of its nodes. Hence, projects such as Cosmos, Kava, Terra, BAND Protocol, Aragon, Hyperledger, Ethermint, Oasis Labs, IRISNet and even Facebook's Libra (now known as Diem) among other projects use Tendermint to offer high performance in their P2P network.
ATOM, a token for the platform
On the other hand, Cosmos also has a native cryptocurrency or token named ATOM. Said token has the fundamental role of creating an economic ecosystem that encourages the work that sustains the entire network. First, the Cosmos network depends on the work of 100 validators, who are responsible for using the Tendermint protocol to carry out the process of generating and validating blocks within the network. This limit is an initial limit that can be altered by the governance of the protocol at any time.
The work of the validators in any case must be rewarding, and as in most blockchains, that reward is given in native tokens, in this case, ATOM tokens. But this selection of validators respects the rules of any PoS consensus protocol, so to be chosen you must have a significant staking to be able to participate. This means that validators must store and lock balances in ATOM to obtain such participation.
Along with this, the ATOM token serves as a mechanism to prevent misuse of the network, that is, to discourage spam, as well as to access network services and as a governance system within the network, since the holders of ATOM tokens can cast votes in proportion to their staking in ATOM.
On the other hand, the issuance of ATOM tokens is unlimited, and the generation of them by the validators is decided dynamically by the network according to the guidelines of the governance of the protocol. Currently, block rewards are calculated at 7-20% of the annual return on the total ATOM supply. Additionally, transaction fees are added, which add up to all of the rewards for validators. The generation of blocks on the network happens every 5-6 seconds, being one of the fastest blockchain networks in this ecosystem.
Fotons (Photons), a second token for the platform
Apart from ATOM tokens, there are also Photons (Photons) in Cosmos. These are a type of token with much more liquidity and speed than ATOM. This second token is used to carry out transactions between all the zones that are connected to the Hub.
ATOM tokens are designed to be linked in the Hub. This means that they are not ideal for paying fees or moving
Characteristics of the Cosmos Network
Among the main characteristics that we can identify in Cosmos Network, we can mention:
Interoperability
The entire network has been designed thinking about facilitating the interoperability of Cosmos with other blockchains, and of those blockchains as a whole. With the Zones, Cosmos can create bridges that communicate a specific blockchain with the other set of zones connected to the network, and thus increase its interoperability stage.
Thus, for example, a Zone with a connection to the Ethereum network, could use Cosmos to connect to a Zone connected to the EOS network, to exchange tokens, operations and more using Cosmos with an interconnection bridge between them.
Scalable
The use of Tendermint within Cosmos makes it very clear that this project can scale in ways that other projects cannot. In fact, the scalability of Tendermint is indefinite since the greater the number of Zones and validators within them, the greater the capacity of the network to scale.
Decentralized
Cosmos is based on the principles of cryptography, sound economics, consensus theory, transparency, and accountability to serve as a new foundation for our future financial systems.
You can use Cosmos as a test for a new cryptocurrency design, an upgrade to an existing cryptocurrency, as a medium for decentralized exchange, or as a platform for scalable smart contracts.
Cosmos is not just a distributed ledger, and the Cosmos Hub is not the center of your universe. Anyone can use this protocol to create their own Hub to compete with Cosmos in a free market for blockchains.
Analysis Tecnichal
Here we see a cumulative zone that is trying to break to the upside, although what is surprising is that this looks a lot like SOLUSDT
Here we see the similarity
The bulls are managing to keep the price above RSI level 52 which indicates that they have enough strength to continue this higher.
The bulls on the MACD indicator are managing to rumble both averages to the upside, giving signs of a possible bullish at level 4
If we realize we are testing the EMA20 days, which could indicate a possible bullish if they manage to keep the bulls above these, on the contrary if the bears manage to lower it to the SMA50 we may have strength but in reality it is more likely to go to test the 18 usdt
Our liquidity of preference must be between 18 to 16 dollars
Atom possible rise we can see that in the PAR BTC is recovering ground adding that the indicators are gaining strength and we are testing the moving averages
In the event that the bears manage to pull the price, we could consider the formation of a W pattern due to the order book and MB
If we notice after several bearish candles and a small bullish rally, we have a dip and a possible rise then we can have a fairly good possible rise. As it is forging a new bullish rally in Sequential MD
Let's hope the bulls keep the price above the moving averages and above the 61.8% Fib level which would suggest that the bulls have the upper hand and we could see a big rally with a lot of potential.
Thanks you.