Cosmos ecosystem

The ever-expanding Cosmos ecosystem is positioned as the Internet of Blockchains. Blockchains launched on the Cosmos Network can communicate with each other through the Cosmos Hub base blockchain via the Inter-Blockchain Communication protocol (IBC). A total of 249 decentralized applications have been launched on the Cosmos Network to date, and the total asset capitalization of the launched blockchains is already more than $70 billion.

The main feature of the Cosmos Hub blockchain is cross-chain solutions that allow any blockchain to be launched in the Cosmos ecosystem to interact both with each other and with external networks like Ethereum and Bitcoin.

What is Cosmos?
What is Cosmos?

The creation of the Cosmos cryptocurrency

Back to history. The ICO of the ATOM token took place in April 2017. The publixale round ended in less than 30 minutes, 75% of the entire issue (at the time) was sold, and the amount of proceeds was more than $17 million. The coin was worth 10 cents at the time of the ICO. 

ATOM tokens

Today, the price of the ATOM coin is around $18, the token has risen by more than 15,000% since the closed sales. Today, the project is in the top 50 and has a capitalization of over $4 billion.

ATOM token issuance is approximately 10% per year and there are 277 million coins in circulation today.

Cosmos: current information
Cosmos: current information

Why Cosmos is Blockchain 3.0?

First of all, let's understand why Cosmos is blockchain 3.0. Let's look at the first level solution - the first cryptocurrency, Bitcoin, which launched the whole industry. Today Bitcoin is the largest cryptocurrency by capitalization. At the same time, the only function of the bitcoin blockchain is transaction recording. Now Bitcoin has "grown" a large ecosystem, is widely used for the transfer of value and is considered to be "digital gold", despite the duration of transactions and the blockchain's lack of additional functionality. Bitcoin can be called blockchain 1.0.

As for blockchain 2.0, the Ethereum project comes to the fore here, which in addition to being a decentralized network has created a special Solidity programming language designed to translate Ethereum virtual machine code into bytes. The virtual machine allows to build applications and create smart contracts that can interact in the blockchain performing their role.

Ethereum's functionality is vastly superior to that of Bitcoin's blockchain, but smart contracts are written according to the rules of the network, and developers cannot change any significant interaction principles depending on the needs of their projects. 

Cosmos peg zone
Cosmos peg zone

There are three main problems with Ethereum that are common to other 2.0 blockchain projects:

  • Scalability. As the network grows, transactions become slower and more expensive. This is especially noticeable in decentralized finance, where frequent small transactions are in demand - the use of ETH in DeFi projects is no longer feasible;
  • Superiority or closedness. Using only one development and interaction environment. Developing applications on Etherium, it is difficult to go beyond the network and its functionality;
  • Useability. The functionality doesn't allow developers to build any complex products and applications.

And if the scalability problem is partially solved by Ethereum 2.0, closability is solved by level 2 projects (for example, the Optimism project), there is nothing that could solve the problem of usability and limited functionality.

Now let's try to figure out how Cosmos works and what it consists of. First of all, it is a blockchain that allows you to connect different blockchains together. Cosmos allows you to create a decentralized application or launch your own blockchain as quickly as possible, with minimal effort, and at the same time be able to interact with another blockchain within the ecosystem (Interchain) and external blockchains through the so-called decentralized bridges.

Cosmos is Blockchain 3.0 for one reason: It was created to address the scalability, usability, and interoperability issues that limit developers to a single network.

Open source tools like Tendermint, as well as the Cosmos SDK, enable developers to quickly build secure, scalable and interoperable blockchain applications and remove the constraints of on-chain and off-chain communication. For example, a Tendermint-based blockchain can interoperate with the Etherium blockchain, which is not part of the Cosmos ecosystem. Tendermint is a core linked to the ABCI (Application Block Chain Interface) that allows you to create applications in any programming language. Thus, by building a blockchain on the Tendermint core, developers can focus on their own product without worrying about consensus and security, developing applications in whatever language they want.

Cosmos ecosystem
Cosmos ecosystem

How does Cosmos differ from other projects?

The main difference between Cosmos is the cross-chain solution, the ability to link different blockchains in the same ecosystem and the interaction between them.

This relationship can be schematically explained as follows: the Cosmos ecosystem has one blockchain A and one blockchain B.

We need to transfer tokens from one blockchain to the other, but the tokens are not transferred anywhere, they are locked in blockchain A and created in B. The tokens in blockchain B then start to "live", but the tokens in blockchain A remain frozen and cannot be used until they return from blockchain B. In essence, this is similar to a smart contract in the Ethereum network, but operating between different blockchains. 

All the merged blockchains will be a network with Cosmos Hub as the connecting link (hub). 

Distinctive features of the Cosmos
Distinctive features of the Cosmos

Where to buy Cosmos Project ATOM token?

As stated above, the project is already listed on all leading exchanges, both centralized sites and decentralized.

The easiest way to buy an ATOM token is on an exchange with bank card payments and P2P (user to user).

Trading crypto-assets is easy. To buy Cosmos instantly, you only need to follow a couple of simple steps. There are several ways to buy Cosmos in India:

  • Local bank transfers. 
  • International bank transfers.
  • Third party payment systems.
  • Credit / debit cards. 

You can find trading pairs with several fiat currencies for Cosmos. 

How to invest profitably in Cosmos in India?

Trading is far from being the only way to make money from cryptocurrency movements. There are alternative instruments on the market. One of them is a contract for difference, or CFD on cryptocurrency. We will tell you how it works. 

Invest in Cosmos in India through online broker
Invest in Cosmos in India through online broker

What is a cryptocurrency CFD?

While some investors still prefer to own cryptocurrencies such as Bitcoin (BTC), most traders prefer to trade cryptocurrency CFDs instead of acquiring ownership of the cryptocurrency. CFDs allow you to enter into an agreement with a broker for a specific period instead of opening a position directly on the market. At the end of the contract, the difference between the opening price and the closing price is exchanged.

CFD is an abbreviation for "contracts for differences" . In the case of assets, it refers to the difference in price, which was formed over a certain period.

With the help of CFD, it is possible to earn on "predictions" of the behavior of the cryptocurrency rates. To do this, the investor needs to bet on which way the price of the asset will go. If his prediction comes true, he will receive the difference in the price as a prize. Losers, on the contrary, will have to pay for their mistake. The loss will be equal to the difference between the contract opening and closing price.

CFD is a contract which does not require the investor to purchase any cryptocurrency. The system fixes the value of the asset at the time of the contract and the user's forecast.

Buy ATOM in India via online trading platform
Buy ATOM in India via online trading platform

Crypto CFDs have a number of advantages . We propose to get acquainted with them more closely. The pros of cryptocurrency CFDs include the following points:

  • Low investment. CFDs allow you to make money on cryptocurrencies without buying them. All it takes is a deposit.
  • Money can be made quickly. The market of digital assets is extremely volatile. This peculiarity opens a lot of opportunities for investors to earn on the movement of the rate of cryptocurrencies.
  • An investor can choose a cryptocurrency to enter into a contract for the price difference.
  • It is possible to earn on CFD around the clock.
  • Can work without restrictions. Many platforms have no cap on operations with CFDs on cryptocurrencies.
  • You can work with CFDs with leverage. The tool allows for a significant increase in income, in case the forecast comes true.

Prospects of Cosmos development

Cosmos is an innovative and promising project that is visible in the crypto sector and in demand among developers. It is developing slowly, but thoroughly. The recent launch of IBC and Stargate updates have made the project a full-fledged ecosystem, which competitors need to reckon with, and investors need to carefully monitor its development.  The capabilities of interoperable projects are staggering. They take blockchain far beyond the financial sector. For example, blockchains that can communicate with each other could be used in logistics, distribution, document management, medicine, retail, and so on. Each of these sectors could operate their own networks synchronized in a single node.  Interoperability also expands the possibilities of the crypto market. For example, decentralized exchanges can communicate with each other through the same hub, providing traders with extensive arbitrage opportunities and additional liquidity.  As it evolves, Cosmos could take a much more significant place in the crypto sector than it does now. 

In conclusion.

The Cosmos project is fundamental, and new applications are already working on its basis and are being created. Investors in the project are reputable funds in the crypto industry and private investors.

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