Table of Contents
Cosmos is a decentralized network of independent parallel blockchains, each based on BFT consensus algorithms such as Tendermint consensus. The platform focuses on compatibility with other blockchain networks. Cosmos network is able to interact with other cryptocurrencies and applications, which other blockchain networks cannot achieve.
ATOM coins are used to pay transaction fees at the Cosmos main center, as well as to participate in the consensus process. What kind of system Cosmos represents? Will the ATOM hit the ceiling? Let’s find out the ATOM price forecast with Changelly!
Cosmos Fundamental Value
The Cosmos project has several important technical features that allow it to achieve the goals of interaction. These are:
- Byzantine Fault Tolerance PoS
- Cross Blockchain Bridges
- Decentralized exchange
Scalability is an important feature of any project aimed at supporting future application development. Cosmos plans to increase its scalability using various other compatible networks connected through zones. These zones operate in parallel to increase transaction throughput. Each zone has its own register, agreed protocol and main language.
The PoS method is based on a set of semi-trusted nodes for voting by blocks. As long as more than a quarter of the voting nodes are honest, the protocol will work without problems. Consensus nodes need to provide a share of ATOM tokens as collateral. Any node that finds that it is acting with malicious intent will be deleted from the system, and its ATOMs with a breakdown will be burned.
Validators running on cross-chain bridges (zone blockchains) are synchronized with the main Cosmos Hub. However, they also launch a full node on the opposite blockchain on the other side of the bridge to confirm that the corresponding amount has been fixed. “Original” tokens are blocked in a scenario with several signatures until the bridge verification tool unlocks them. Accordingly, it destroys the tokens in the blockchain with cross bridges. This allows you to transfer digital assets in different chains.
ATOMs are used to pay transaction fees at the Cosmos main center, as well as to participate in the consensus process. Validators rely on ATOM to earn both a reward for blocking and a transaction fee. To be a validator, you need to link their ATOMs (blocking them) with enough ATOMs to be among the top 100 balances with the most bets on the network.
|Consensus Protocol||PoS + BFT|
|Curr. Supply / Total Supply||190,688,439 ATOM / 237,928,231 ATOM|
|ROI since launch||-68.13%|
|Launch date||March 2019|
The main backbone of the team consists of two developers who developed the Tendermint protocol in 2014. This is Ethan Buchman and Joe Kwon. Ethan Buchman plans to provide the community with various options for engaging in consensus-building across a wide range of industries. Joe Kwon is the creator of the Tendermint protocol. He promotes the Tendermint consensus algorithm, which he positions as the most efficient consensus algorithm that seeks maximum speed and scalability.
Cosmos Price History
In 2014, Tendermint Inc. was established. Based on the Byzantine Fault Tolerance (BFT) consensus study, the Tendermint consensus algorithm is created, which is a hybrid of the PoS algorithm using BFT principles.
In 2015, the ability to connect the Tendermint core to applications written in any language through the Application Blockchain (ABCI) interface was developed. Thanks to this, it became possible to create independent blockchains using any programming languages, as well as basic modules.
In 2017, the future creators of Cosmos came up with the decision to create several parallel blockchains and their interaction, which would not endanger security. With Proof-of-Work, that would be impossible.
In April 2017, developers managed to raise $17 million in less than 30 minutes. During the ICO, one ATOM coin was sold for $0.1. The first listing on cryptocurrency exchanges was only at the beginning of 2019. Many cryptocurrency exchanges placed their token on their own initiative.
Many expected the price after listing at $0.4 – $0.5. However, at the peak, the cost reached $8 (80x of the ICO price).
In May 2019, the ATOM coins were added by TrustWallet. This action immediately caused the rise of the rate to $5.
Cosmos Technical Analysis
Well, there is not actually any technical analysis expertise of Cosmos cryptocurrency. However, here is the aggregate rating for ATOM from several traders & analysts on TradingView.
Cosmos Community Reputation
There is quite a lot of competition among projects that are trying to find a solution for the interaction between blockchains. Cosmos rivals include startups like Polkadot, AION, Penta. Cosmos offers a platform for making payments and exchanging information between blockchains. The problem of interaction between blockchains is relevant. Its solution allows not only to make payments between blockchains but also to exchange information in full. The future if the project depends on its development.
This project is described by Forbes as the “World Wide Web for Blockchains.” In fact, the network acts as an interoperation platform on which tokens from various blockchains can be used.
A number of projects are already being developed based on Cosmos/Tendermint technologies, deciding to become part of the Cosmos ecosystem, e.g. Binance Chain, e-Money, IOV, IRISnet, Kava, Lino, Regen Network, etc.
The popularity of the Cosmos project is slightly associated with the events happening in the coin development. According to the Google Trends graph, the highest peak occurred on April 22, when the Kraken exchange listed the ATOM coin.
Influencers’ Views on Cosmos
Users on the BitcoinTalk forum have a positive opinion on the Cosmos project.
Eric Voorhees, the CEO of ShapeShift, mentioned ATOM as a prospective cryptocurrency:
Crypto enthusiasts definitely predict the rise of cryptocurrency soon:
What to expect from Cosmos in late 2019
If we talk about some numbers, then we can predict the average price of ATOM coins. By the end of 2019, the ATOM will cost $2.49. The next year is not so predictable. However, if the developers improve the system, then the coin rate will be up to $3.1.
Let’s look at the advantages and disadvantages of cryptocurrency. Advantages:
- Support in cryptocurrency circles. Almost all the top exchanges themselves, without an application from the developers, added the altcoin to the listing. Moreover, he is supported by Changpen Zhao of Binance and Fred Ersam of Coinbase. The latter (or rather, his hedge fund Paradigm) invested $ 9 million in development.
- Promising technology. According to most experts, the integration of various blockchains will not only solve many current problems of the cryptocurrency market but also make it truly global.
- Practical use. The technology is already used by well-known services and applications: Binance Chain, e-Money, IOV, IRISnet, Kava, Lino Networks, Terra and many others.
- Doubtful decentralization. In fact, the network is managed by 100 validators. And in order to remain a validator, you need to constantly increase assets. Some experts fear that such a scheme could lead to the appearance of “whales” in the domestic Cosmos market.
- Strong competition. Startups AION, Polkadot, and Penta are also developing in the direction of cross-chain. And the more successful Waves cryptocurrency market initially embarked on the introduction of gateways.
- Slow development. The chronology of the project looks rather strange: 2014 – development of technology, 2017: raising money for creating a platform, technical work, 2019: entering the market. The launch of a full-fledged system with transfers between blockchains and tools for creating new chains was scheduled for February 2018. Then the date was moved more than once, and as of May 2019, the developers presented only a test network and applications for smartphones.
Such slowness directly affects the prospects of the coin. The main condition for the success of the project (and the increase in the cost of the token) is the dynamic growth in the number and activity of networks connected to Cosmos.
Therefore, it is not worth waiting for a noticeable increase in the course in the next 1.5-2 years. As well as in a hurry to add ATOM to the cryptocurrency portfolio. In conditions of slow development and the presence of successful competitors, the project may not live up to its expectations.
Buy ATOM at Changelly with USD, EURO or GBP
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.