What Is Cosmos (ATOM): A New Blockchain Network

What Is Cosmos (ATOM)?

Named after the Greek god of the cosmos, Cosmos (ATOM) seeks to change the way companies share information and deals with data. Companies are often incentivized to act as gatekeepers who control access to the information they use, while the data itself is locked away as an encrypted private asset. Cosmos, the brainchild of Clifford Goldberg, Jesper Koll, and Nathan Schweitzer, is attempting to bring “long-term engagement with permissionless data.” It works by creating a data hierarchy that spans multiple chains, building an “ecosystem of interconnected data across trust domains.” That means instead of each blockchain creating a fully distributed system that weaves together all the data in its space, Cosmos uses cross-chain integration for complex data analysis and data correlation.

The Purpose of Cosmos (ATOM)

To understand why the Cosmos network has to exist at all, we need to dig a little deeper into the unique challenges faced by blockchain networks. In his latest blog post, the Cosmos architect, Ryan X. Charles, explains: [T]he primary goal of Cosmos is to address the harsh reality of the proof-of-work blockchain, which underpins every crypto coin and includes the Bitcoin blockchain. The unique characteristics of the proof-of-work blockchain are not that it provides strong security. Indeed, Bitcoin has some serious issues with security, most notably its widespread abuse by power-hungry miners, through whom 95% of transaction fees are being collected.

Cosmos (ATOM) Price

The current price of Cosmos (ATOM) is $14.27.

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How Does Cosmos (ATOM) Work?

Here’s an outline of how Cosmos works, and what it intends to offer: The overall aim of Cosmos is to be the world’s first secure, fast and low-cost data exchange network. Instead of issuing blocks (blocks being blocks of transactions), Cosmos issues Cosmos tokens to nodes on the network. Each Cosmos token is the digital representation of a hash of a blockchain transaction. The network claims a mechanism that minimizes competition among nodes and prevents a sudden fork of the blockchain. This mechanism allows nodes to communicate without censorship. The Cosmos team claims it will be the first project that offers a user-friendly service that does not require the downloading of the entire blockchain. Why Is Cosmos Popular With Blockchain Developers?

Who Is Behind Cosmos (ATOM)?

Some of the many people behind Cosmos include Mikhail Khodarenok, CEO, co-founder of Slock. it, a decentralized marketplace for decentralized commodities, and founder of open-source protocol project PASW; CEO, co-founder of Slock.

Potential Hurdles For The Project

More than anything else, I expect the big hurdle for Cosmos will be project management. If the developers involved can execute their vision, there is a lot of potential in their ambitious and at times somewhat ambitious project. For example, the project’s ICO has to meet a set of qualifications. It must first register its own legal entity in the U.S. (in the form of a U.S.-based limited liability company), a task that will require a significant amount of resources. There is also an April 17 deadline for Cosmos to submit the whitepaper and prototype to the BIS, a significant sticking point. The project will need to convince the bank to accept its whitepaper as the official version of its blockchain. Related: Is the Public Bullying Blockchain Startup Ethereum?

How does Cosmos solve these problems?

Through the “hub and spoke” design method, it aims to decentralize the process of keeping distributed databases secure, by coupling sidechains with a modified version of the open-source code that underpins the Bitcoin blockchain. Cosmos hopes to use the aforementioned nature of blockchains to alleviate the problem of scalability. In a nutshell, it works like this: Miners are required to establish proof-of-work to keep a ledger of who owns a cryptocurrency or smart contract associated with a particular blockchain. This system suffers from its usual problems, such as the Byzantine Generals’ Problem, but its solution is the same as any other private blockchain. That is, it’s long-winded, centralized, and ultimately quite resource-consuming.

Conclusion

So far, the company’s crowdfunding efforts have been well received by the community. Early investors include well-known blockchain advocates and economists, including Wendy M. Tan-White, a partner at blockchain-focused venture fund Bitfury Ventures; and Brock Pierce, the founder of Blockchain Capital.

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