What is Cosmos?

Cosmos is also called the 'internet of blockchains', and that is not without reason. With Cosmos, blockchains are connected to each other, which makes interaction between different blockchains possible. With Cosmos developers can also quickly and easily set up their own blockchain. The basis is provided by Cosmos, and they only have to deal with the details. This leaves more time for the development of decentralized applications (dApps) that run on the blockchain. What is Cosmos (ATOM)? Cosmos is also known as the "internet of blockchains," and for good reason. This is because Cosmos connects blockchains together, allowing interaction between different blockchains. In essence, blockchains cannot interact with each other. This is because each blockchain uses its own rules and protocols. These differences ensure that data cannot be transferred. The problem that arises here is also known as the interoperability problem. Cosmos is a decentralized network that ensures that individual blockchains can be linked together. This collaboration can take place while the blockchains continue to run within their own ecosystem.

Developers can develop their own blockchain within Cosmos quite easily. This is because of the Software Development Kit (SDK) they have developed. The SDK provides the foundation of the blockchain, after which the developer only has to develop the details. As a result, developers spend less time developing the blockchain, allowing them to focus more on developing the decentralized application (dApp). But they also need to worry less about security. Cosmos takes care of this.

Cosmos uses Tendermint Core as the consensus mechanism. This algorithm is based on Proof of Stake, and ensures that blocks are added to the blockchain extremely quickly. The Cosmos network consists of only 100 validators, which ensures a high processing speed. One drawback is that this makes the Cosmos network less decentralized than blockchain networks made up of a larger number of nodes. ATOM cryptocurrency Cosmos has its own cryptocurrency called ATOM. This cryptocurrency can be used for several purposes. Initially, this native cryptocurrency can be used for staking and governance.

Staking is possible because the consensus mechanism of Cosmos is based on Proof of Stake. This means that you can stake ATOM tokens by setting up your own validator. However, it is also possible to delegate your stake to another validator. You then give your tokens to another validator who uses them within the network. As a result, you will earn an interest on the coins you stake. You can also stake ATOM at Coinmerce, where you can earn an interest rate of 5% per year. To stake ATOM at Coinmerce, there will need to be a minimum of 10 euros worth of ATOM in your Coinmerce wallet.

Owners of ATOM can also use this token governance. This means that they can have a say in the future of Cosmos. When a choice must be made, they can use their tokens to indicate which choice they are voting for. The choice that received the most votes will then be followed. The governance of Cosmos thus works according to a DAO (Decentralized Autonomous Organization), which can be compared to a democracy.

Several applications are already running on the blockchain of Cosmos. Indeed, the popularity of this blockchain has exploded in recent years. This is mainly due to its fast processing time and low transaction costs. In total, more than 250 decentralized applications run on Cosmos, including Crypto.com, Band Protocol, OKExChain and Aragon.

Because Cosmos is a well-known project, you will be able to purchase the ATOM cryptocurrency on many different exchanges, including Coinmerce. You need an account at Coinmerce to buy ATOM, which you can create here. After you have created an account and logged in, you will buy your tokens on the Cosmos (ATOM) coin page. You settle these directly with euros or buy them with another cryptocurrency. At Coinmerce, you can use various payment methods, including iDeal, SEPA, MyBank and Sofort. Coinmerce also has its own mobile application which you can download from the App Store (iOS) and Google Play Store (Android). This way you can always quickly view your wallet and perform transactions.

Many crypto wallets offer support for ATOM. For example, it is possible to store ATOM in a hot wallet, although you should first check with the issuer if they actually offer support for ATOM. When you send ATOM to a wallet that does not support it, there is a good chance you will lose your tokens forever. The moment you purchase ATOM on Coinmerce, the tokens are stored directly to your Coinmerce wallet. We store the majority of your crypto tokens on cold storage. This means that they are extra protected from outside influences.

Do you want to earn an interest on your ATOM tokens? Then you can choose to stake Cosmos at Coinmerce. If you have ATOM tokens in your Coinmerce wallet, you can stake these tokens directly from your wallet. It is also possible to purchase tokens on the coin page of Cosmos after which they will be deployed directly for staking. It is possible to stake Cosmos because this blockchain uses Proof of Stake, which means the network consists of validators. By staking Cosmos, you help the network validate transactions and create new blocks. This also ensures a higher level of security within the Cosmos network. So to stake, you don't necessarily have to set up a validator node yourself. It's a lot easier to do this through Coinmerce. You can earn up to 5% interest per year when you stake ATOM tokens for a minimum of 10 euros. The profits from staking Cosmos are moved directly to your wallet at Coinmerce.