Cosmos launched at the peak of blockchain infrastructure, with Ethereum's developer-friendly blockchain and Cardano's highly scalable network entering the cryptocurrency market at about the same time. The Cosmos network is the product of 15 companies working together, a project that took about five years to complete. 

The platform maintains a blockchain that replicates Ethereum, only on a faster scale. With its Software Development Kit blockchain and the Cosmos Hub, Cosmos boasts a blockchain for everyone that allows users and developers the best experience in the cryptocurrency market.

Cosmos intends to build a network of interoperable blockchains. Here, we go over Cosmos's protocol and its outstanding features that enable it to connect other blockchains while providing utility to crypto users.

What Is Cosmos?

Cosmos is a blockchain solution that connects several blockchains within the cryptocurrency market, allowing users to enjoy faster, more scalable networks. The blockchain intends to become an Internet of blockchains, enabling the individual blockchains to perform multiple functions and serve more users. 

The Cosmos blockchain was developed by Tendermint Inc. in a process that spanned five years. Lead developer, Jae Kwon, applied research on Byzantine Fault Tolerance (BFT) protocols on a proof of stake blockchain to create the Tendermint protocol in 2014. The protocol was completed in 2016, and Cosmos was deployed into the crypto-verse. By 2019, the Cosmos Hub was added to the protocol, serving as an economic center for growth and development.

Because of its unusual development, Cosmos's protocol is referred to as a BFT proof of stake protocol. It combines elements from both forms of protocols to create a hybrid that is highly scalable and user-friendly. The BFT aspect allows the platform to reach a consensus even when some node validators are offline. This makes for faster transactions, and Cosmos is quite famous for its seven-second transactions.

On the other hand, the proof of stake part of the protocol allows users to stake the platform, thus securing it against threats and helping it scale even faster. Like Solana, Cosmos decided one form of protocol won't do the trick, and its hybrid protocol is one of the reasons it is ranked highly among crypto tokens. 

How Does Cosmos Work?

The hybrid BFT proof of stake protocol supports Cosmos's blockchain and Hub. The blockchain is based on an open-source Software Development Kit (SDK), which other developers can copy to create their public blockchains on Cosmos. The dream is to achieve high scalability levels, and Cosmos's protocol is encouraging developers to create their blockchains on the platform.

At the center of the blockchains, we have the Cosmos Hub, which was added after the blockchain technology was deployed. The Cosmos Hub houses several distributed applications that provide utilities and real-world applications for users on the Cosmos network. Cosmos Hub acts as an economic center for the blockchains, promoting interoperability through DApp development. For instance, it forms interchain bridges with platforms like Ethereum and Bitcoin, allowing Cosmos-based blockchains to interact with them.

Cosmos's blockchains boast three major benefits, namely:

1. Scalability: We can't talk about this enough, as scalability is one of the features that makes Cosmos a more suitable blockchain for DApps than Ethereum. The Cosmos network allows for both vertical and horizontal scalability. For instance, blockchains can be built for a single DApp, allowing many users to access its services without hitches, or a multiple-application blockchain (like token blockchains) can be duplicated to allow more users access to the same set of applications. 

2. Sustainability: Carbon imprints have been a constant issue with proof of work blockchains, as they require high energy inputs to keep running. This translates to higher emissions, thus affecting the ecosystem. Cosmos blockchains boast a 99% lower carbon imprint rating, as its hybrid protocol reduces the amount of energy consumed per transaction. 

3. Sovereignty: Most tokens and DApps function on one blockchain, which could get congested and expensive to operate as the number of users increases. With Cosmos's SDK, developers can create a Dapp or token that runs on multiple blockchains without sacrificing the sovereignty of any blockchain. 

Where Does ATOM Come In?

As is the case with many successful crypto platforms, Cosmos is governed by a community of token holders, delegators, and validators across the world. They interact with one another via the blockchains, deciding on the next steps for the Cosmos network.  

The ATOM token is the symbol of governance, allowing any token holder to vote on the platform. Proposals come intermittently, and the community is often required to decide which proposal is best for the Cosmos network. ATOM is also used to stake on the platform, thus guaranteeing its economic security. Staking more tokens means it will cost more to attack the Cosmos blockchain; that is how the Cosmos network stays safe from token crashes. 

As a reward for delegating their tokens, stakers on Cosmos get even more ATOM. The staked, or delegated, ATOM tokens are locked forever unless revoked by the user. Revoking ATOM tokens takes 21 days, after which the user can transfer them. 

On the other hand, coin holders are encouraged to stake their tokens, as the platform regularly releases more ATOM into circulation. The release of more coins will dilute the value of ATOM tokens for those not staking theirs since they are not receiving more ATOM tokens in return. 

ATOM is also the currency for transacting on the Cosmos network. Since many tokens launch on the Cosmos blockchains, ATOM brings uniformity to cross-chain trading, preventing spamming and maintaining a standard among different blockchains.

Should You Invest in ATOM? | Where to Buy ATOM Tokens

You can trade ATOM on centralized and decentralized exchanges, including Coinbase, Binance, Kraken, ByBit, KuCoin, Gateio, and non-custodial wallets like MetaMask and TrustWallet. 

Before investing, remember to do your research and get advice from professionals. Also, only invest what you can afford in cryptocurrency. 

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This article is intended for educational purposes and is not financial advice.