Top Cosmos Ecosystem Coins by Market Cap
View all tokens and cryptocurrencies used within the Cosmos Ecosystem below. Read More about Cosmos Ecosystem
Cosmos focuses on blockchain interoperability, working towards the vision of building the “Internet of Blockchains.”
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What is Cosmos?
Cosmos is building a decentralized network of blockchains that are designed to be interoperable and scale with each other. Instead of focusing on one main blockchain that handles all the apps and transactions, Cosmos equips developers with the platform and tools to create blockchains optimized for their use cases, with the potential for customization and upgrades. These developer-created blockchains are known as “Zones,” which are connected through each other via a “Hub,” which is a blockchain specifically designed to connect Zones together. The first Hub launched in the Cosmos Network is the Cosmos Hub, which is a public proof-of-stake network.
As each application exists on its own blockchain,any issues can be fixed without affecting other applications in the ecosystem. On the other hand, if an application is built on top of a virtual-machine like the Ethereum Virtual Machine, an issue cannot be fixed unless the governance of the underlying chain, like Ethereum, consents to it.
How Does Cosmos Work?
The Cosmos ecosystem is made up of proof-of-stake networks with governance assets that are staked to validate transactions specific to the individual networks. However, smaller chains with a low number of validators are more vulnerable to potential attacks, which is where Interchain Security (ICS) comes in. It is a form of shared security that lets smaller chains tap into validators on a larger chain to secure their networks, instead of setting up new validator sets.
What Can I Do With ATOM?
As a user, you can stake Cosmos’s native token, ATOM, with a validator to earn rewards. Staking your ATOM lets you secure the network, participate in governance, and even receive airdrops when a new project is launched in the ecosystem. With ICS, there is also the potential to earn other cryptocurrencies as rewards for staking ATOM. As Cosmos has adopted an inflationary token mechanism with an infinite token supply, the supply of ATOM is inflated to compensate stakers, so non-stakers’ ATOM holdings will suffer from inflation if they do not stake their tokens.