The native coin for the Cosmos network has skyrocketed more than 10% to beat its previous record, trading at $7.75 this Monday lunchtime
Often described as ‘the internet of blockchains’, ATOM is the cryptocurrency that powers the Cosmos network. Focussing on interoperability, the Cosmos network is able to facilitate transactions with other cryptocurrencies and applications through compatibility with other blockchains.
This huge leap in value comes at a time where interest in decentralised finance (DeFi) has never been higher. As more people look to acquire decentralised credit, there is a great demand for the networks that create an interaction between blockchains seamlessly.
As revolutionary as Bitcoin was, the pioneering digital currency was limited, incapable of supporting applications. This led to the creation of Ethereum, a natural progression of the model of its predecessor, Ethereum would enable the creation of decentralised applications and the launching of ‘smart’ contracts on its network.
Since then, there have been literally thousands of cryptocurrency projects launched with as many intended uses. Until recently, however, one main obstacle has remained largely unchallenged. Transactions and activity of these new versatile assets have been limited to their own network.
Cosmos aims to solve this problem by laying the foundation for an environment where all tokens can communicate with one another.
Through the IBC communications protocol, the Tendermint consensus engine and a ground-breaking software development kit, Cosmos allows for the building of customised blockchains which are granted their own sovereignty. This means that each blockchain built using the cosmos network is ultimately governed by the users, in keeping with a core philosophy of decentralisation.
The network is a very promising addition to the crypto sphere, allowing more freedom for new innovators to enter the space, with revolutionary ideas to improve lives and shift us away from the traditional flawed financial paradigm.
Cosmos features a BFT consensus, Proof of Stake (PoS) and On-Chain Governance. The system will allow for interaction between new and existing blockchains, encouraging foundations for open finance, frictionless cross-border payments, and easy communication between a range of industries.
As DeFi continues to rapidly grow and evolve, the demand for Cosmos and other such interoperable networks is on the rise. An exciting time for prospective investors to be sure, and further proof that the Season of the Altcoin has well and truly begun.