Cosmos is an ever-expanding ecosystem of interconnected apps and services, built for a decentralized future.
The Cosmos network consists of many independent, parallel blockchains, called zones, each powered by classical Byzantine fault-tolerant (BFT) consensus protocols like Tendermint (already used by platforms like ErisDB). Some zones act as hubs with respect to other zones, allowing many zones to interoperate through a shared hub. The architecture is a more general application of the Bitcoin sidechains concept, using classic BFT and Proof-of-Stake algorithms, instead of Proof-of-Work.Cosmos can interoperate with multiple other applications and cryptocurrencies, something other blockchains can’t do well. By creating a new zone, you can plug any blockchain system into the Cosmos hub and pass tokens back and forth between those zones, without the need for an intermediary. This has led to an increase in ATOM price.
Atoms have three use cases: as a spam-prevention mechanism, as staking tokens, and as a voting mechanism in governance.
Users use ATOM to pay fees to prevent spams. The fee may be proportional to the amount of computation required by the transaction, similar to Ethereum’s concept of “gas”. Fee distribution is done in-protocol.
As staking tokens, Atoms can be “bonded” in order to earn block rewards. The economic security of the Cosmos Hub is a function of the amount of Atoms staked. The more Atoms that are collateralized, the more “skin” there is at stake and the higher the cost of attacking the network, thus, the more Atoms there are bonded, the greater the economic security of the network.
Atom holders may govern the Cosmos Hub by voting on proposals with their staked Atoms.
Serving as the economic center of Cosmos, the Cosmos Hub is a blockchain that provides vital services to the Interchain as below.
Set to operate a next-gen decentralized exchange, swapping digital assets from across the Interchain, with very low fees and instant transaction confirmation.
With the upcoming Interchain Security feature, ATOM will soon be securing many chains, in exchange for additional staking rewards.
A core mission of the Hub – to connect chains by establishing IBC connections with compatible chains and operating decentralized bridges with chains like Ethereum and Bitcoin.
Located at the crossroads of the Interchain, the Hub is extremely secure, the best place to hold digital assets and manage accounts across many chains.
Let us review ATOM Price.
ATOM Price Prediction
ATOM is currently trading below the resistance at $36.92. If it breaks this resistance, we could start seeing a move towards $42.22, $46.50, $50.79, $56.89, $64.65 and $87.08. Failure to break the resistance at $36.92 could lead to a drop towards $28.23, $25.05 and $22.46.
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