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View ChartCosmos is a blockchain project designed to enable various blockchains to communicate and share data through inter-blockchain communication protocols. The ultimate goal of Cosmos is to establish a “blockchain Internet”, allowing users to seamlessly switch between blockchains, benefit from the advantages of each, and avoid weaknesses. Cosmos bills itself as a project that solves some of the “hardest problems” facing the blockchain industry, aiming to offer an antidote to “slow, expensive, unscalable and environmentally harmful” proof-of-work protocols, like those used by Bitcoin, by offering an ecosystem of connected blockchains.
The Cosmos network consists of three layers: the application layer, the networking layer and the consensus layer. The most essential element to this layered design is the Tendermint BFT engine, which connects to applications through a protocol called the Application Blockchain Interface. Zones are connected to the Cosmos Hub via the Inter-Blockchain Communication protocol (IBC), and the Cosmos team has also built the Cosmos software development kit (SDK), allowing developers to build blockchains using the Tendermint consensus algorithm.
Unlike Bitcoin networks, where computer “miners” compete to process transactions and receive rewards in a proof-of-work system, Cosmos operates on a proof-of-stake mechanism. Here, validators are allocated blocks according to the number of ATOM tokens they have staked; ATOM is not produced through mining, but earned through staking. ATOM is the native token of the Cosmos Hub.
In 2014, Jae Kwon and Ethan Buchman founded Tendermint and co-founded the Cosmos network, at a time when most of us weren’t even aware of the existence of blockchains or cryptocurrencies. Jae Kwon established Tendermint by being the pioneer in applying Byzantine Fault Tolerance (BFT) in a Proof-of-Stake (PoS) context, and he developed the original Tendermint consensus design. The Cosmos white paper was published in 2016, and in 2019 the Cosmos software was released and the Cosmos Hub was founded by the Tendermint Inc. team.
Cosmos’s central vision is to create an ‘internet of blockchains’, and this might not remain a dream for much longer. Key metrics cited on cosmos.network include 200+ chains, $70bn secured in public chains, and 10,000+ transactions per second. But before we delve into its future plans, let’s cover the basics.
ATOM is the native coin of the Cosmos Hub, the first blockchain in the Cosmos ecosystem, and is the only staking token of the Cosmos Hub. It powers the Cosmos Hub, meaning you’ll need to pay your fees in ATOM in order to use the network. ATOM can be used for holding, spending, sending or staking, and plays a key role in maintaining interoperability between all zones in the wider Cosmos network.
In terms of tokenomics, ATOM has a total supply of about 534.82M (CoinMarketCap and Yahoo Finance) and a circulating supply of about 534.82M (CoinMarketCap) or 534,079,426 (Robinhood). Its max supply is unlimited (∞), and its fully diluted valuation and market cap are both about $1.04B.
Next, ATOM also acts as a governance token. Governance on the Cosmos Hub is carried out by validators voting on changes, and voting power is determined by the amount of ATOM staked. Holders can delegate their tokens to validators, allocating votes to them while still earning a portion of the block reward, thereby participating in governance indirectly.
Finally, ATOM is also the coin used for staking on the Cosmos Hub blockchain. On the Cosmos Hub, validators need to first stake ATOM in order to power the blockchain and vote on changes, and a node needs to be in the top 100 of nodes staking ATOM to become a validator. Voting power is determined by the amount of ATOM staked. Without this staking mechanism, the whole security of the blockchain would be at stake, so ATOM’s role here is extremely important.
ATOM can be stored using wallets such as Keplr, the leading IBC-enabled wallet that puts usability and interoperability at its core, or Leap, which integrates 50+ chains across EVM, Cosmos and Solana. On-chain transactions can be viewed through block explorers such as Mintscan, Big Dipper and Ping Dashboard, and holders can delegate their ATOM to validators to take part in staking.
Investing in ATOM involves risks, including price volatility, changes in regulatory policy and technical risks. The information here is not investment advice, and you should assess these risks yourself before buying or staking ATOM.
ATOM can be purchased through a range of crypto trading platforms, and you should verify the compliance and security of any platform yourself before buying. Changelly lets users instantly buy Cosmos (ATOM) with a credit or debit card in just 3 simple steps from just $5 in 100 fiat currencies. Robinhood lets users buy or sell Cosmos and other crypto 24/7. Kraken lets users trade ATOM on Kraken. Before you buy, make sure you understand the risks involved.
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Trade| Feature | Cosmos (ATOM) | Polkadot (DOT) | Avalanche (AVAX) |
|---|---|---|---|
| Cross-Chain Tech | IBC Protocol (Decentralised P2P) | Relay Chain & Parachain Slots | Avalanche Consensus & Subnets |
| Chain Sovereignty | 100% sovereign Appchains with custom validators | Requires leasing slots & sharing Relay Chain security | Customisable Subnets (requires AVAX staking) |
| Shared Security | Optional (via ICS Mechanism) | Mandatory (all Parachains share Relay Chain) | Flexible (Subnets design own security model) |
| Core Strength | Modular flexibility & growing IBC ecosystem | Tight security integration across all chains | Sub-second transaction speed & full EVM support |
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