Cosmos Price (ATOM)

Cosmos is a decentralized network of interconnected blockchains designed to enable scalable, interoperable, and secure communication between different blockchain platforms. It is built on a unique consensus algorithm called Tendermint, which combines Byzantine Fault Tolerance (BFT) and Proof of Stake (PoS) mechanisms.

At its core, Cosmos seeks to address the issue of blockchain fragmentation, and become the internet of blockchains. By providing a framework for interoperability via Inter-Blockchain Communication Protocol (IBC), Cosmos allows different blockchain platforms to communicate and share information with each other, fostering a new era of blockchain connectivity. This interoperability opens up possibilities for cross-chain asset transfers, decentralized applications (dApps) that span multiple chains, and collaborative blockchain development.

The Cosmos ecosystem is powered by its native token called ATOM. ATOM serves as the staking and governance token for the Cosmos Hub, which acts as the central hub connecting various blockchains within the Cosmos blockchains. Token holders can stake ATOM to secure the network and participate in the consensus process while earning rewards.

Cosmos enables the creation of new independent blockchains too, known as "zones," which are essentially application-specific blockchains, that can have their own unique characteristics, governance models, and consensus algorithms. These zones can connect to the Cosmos Hub and other zones, forming a vibrant and interconnected ecosystem of blockchains.

Cosmos price history

2017

Cosmos (ATOM) was launched in March 2017. The price of Cosmos started at around $0.10 and gradually increased throughout the year, reaching its highest price of $0.35 in December. The main driver of the ATOM price increase in 2017 was the overall bull market in the cryptocurrency market.

2018

The price of ATOM declined sharply in 2018, along with the rest of the cryptocurrency market. The price of Cosmos fell from a high of $0.35 in December 2017 to a low of $0.07 in January 2018.

The main reason for the decline in the price of ATOM in 2018 was the bear market in the cryptocurrency market.

2019

The price of ATOM remained relatively stable in 2019, trading between $3 and $5. There were a few notable events that occurred in 2019 that affected the price of ATOM, including the launch of the Cosmos Hub in March 2019. 

The Cosmos Hub is the main blockchain in the Cosmos blockchain ecosystem, and it allows for inter-blockchain communications.

2020

The Cosmos price dropped sharply in early 2020 to an all-time low of $1.13 due to the onset of the COVID-19 pandemic. The token made a quick recovery to its old value thanks to the strong fundamentals displayed by Cosmos. It even briefly reached a high of over $8 in August of the same year.

2021

2021 was a bullish year for the entire crypto market. The price of ATOM continued to increase in 2021, reaching an all-time high of $44.70 in September. The main driver of the price increase in 2021 was the continued growth of the Cosmos ecosystem. The blockchain network added a number of new projects in 2021, including:

• Osmosis: a decentralized exchange (DEX) that allows users to swap tokens on the Cosmos platform.

• Kava: a decentralized lending platform that allows users to borrow and lend tokens on Cosmos.

• Regen Network: a decentralized carbon credit protocol that allows users to buy and sell carbon credits on the Cosmos platform.

2022

The price of ATOM declined in 2022 before stabilizing around the $10 mark. This was due to the overall bear market in the cryptocurrency market and other global economic factors.

2023

ATOM has declined in price throughout 2023, from its high of $15.15 in February to its low of $06.642 in August.

How does Cosmos work? 

Cosmos is often referred to as a "Layer-0" blockchain because it acts as a foundational layer for connecting (and creating) different blockchains rather than being a standalone blockchain itself. It provides the infrastructure and protocols necessary for blockchain interoperability.

At its core, Cosmos utilizes a hub-and-spoke architecture to facilitate communication and interoperability between other blockchains in the network/ecosystem.

Cosmos's hub-and-spoke architecture is similar to the modern commercial airline infrastructure.

Just as passengers from different cities can board flights and reach their destinations faster by using hub airports (think connecting flights and layovers), blockchains connected through the Cosmos Hub can exchange information more efficiently and rapidly. 

The Cosmos Hub acts as a central coordination point for transactions and data flow between zones, significantly speeding up information exchange compared to a scenario where each blockchain would need to establish direct connections with all others.

To validate transactions, the Cosmos Hub utilizes a Proof of Stake (PoS) consensus algorithm called Tendermint. In PoS, users stake their coins to “vote” on the validity of transactions. All validators in the network must come to a consensus for every transaction, and those who participate receive rewards, making it an economically incentivized process.

Who are the founders of Cosmos?

The Cosmos project was founded by Jae Kwon and Ethan Buchman.

Jae Kwon, a computer scientist and entrepreneur, is widely recognized as the co-founder of Cosmos. He played a pivotal role in developing the Tendermint consensus algorithm, which forms the basis of Cosmos. Kwon's expertise in distributed systems and his vision for a more interconnected blockchain ecosystem laid the foundation for Cosmos.

Ethan Buchman, also a computer scientist and entrepreneur, joined forces with Jae Kwon to co-found the Cosmos project. Buchman contributed to the development of the Tendermint consensus algorithm and played a significant role in the technical aspects of building Cosmos. His expertise in blockchain technology and his passion for decentralization have been instrumental in shaping the project.

What is Cosmos used for?

ATOM has multifaceted utility within the Cosmos network. It is essential for securing the network through staking and governing its operations. Additionally, it acts as a medium of exchange, facilitating cross-chain transactions and enabling blockchain interoperability.

With these features, Cosmos aims to create a scalable and interconnected ecosystem that empowers developers and users to build decentralized applications across multiple blockchains.

What makes Cosmos unique?

There are three key aspects that make Cosmos unique:

1. Inter-Blockchain Communication (IBC): IBC is a fundamental feature of Cosmos that enables secure and trustless communication between different blockchains within the Cosmos network. IBC allows for the transfer of assets, data, and messages across blockchains, enabling blockchain interoperability and facilitating complex decentralized applications that span multiple chains. IBC serves as the backbone of Cosmos, fostering seamless communication and collaboration between blockchains in the ecosystem.

2. Cosmos SDK: The Cosmos Software Development Kit (SDK) is a powerful framework that enables the creation of customized blockchains and applications within the Cosmos ecosystem. It provides developers with a set of tools, modules, and libraries to build and deploy their own blockchains with specific functionalities. The Cosmos SDK simplifies the development process and offers flexibility for tailored blockchain solutions, making it easier for developers to participate in the Cosmos network.

3. Interchain Security: Traditionally, every new blockchain in the Cosmos ecosystem needed its own validator set. But this wasn't very efficient because it meant that validators needed to participate in multiple networks simultaneously – meaning increased overheads and experimental projects could not take off easily. Interchain security refers to the ability of one blockchain to leverage the security properties of another blockchain within the Cosmos network. By connecting to the Cosmos Hub, blockchains can benefit from the collective security provided by the validators securing the Hub. This approach enhances the overall security of connected blockchains, ensuring that the security of all Cosmos blockchains is shared and strengthened.

How can I mine or stake Cosmos?

Cosmos (ATOM) does not support traditional mining like Proof of Work (PoW) on other blockchains such as Bitcoin. Instead, Cosmos utilizes a Proof of Stake (PoS) consensus algorithm.

Here's how you can stake ATOM without technical expertise:

1. Set-up a wallet to store ATOM

2. Purchase ATOM via MoonPay

3. Delegate your ATOM to a validator

4. Earn rewards in ATOM