Cosmos, often referred to as the “Internet of Blockchains,” is an ecosystem that lets separate blockchains work together. It emphasizes interoperability, speed, and scalability. At its foundation, it consists of many blockchains, each running its own consensus mechanism and connected through the Cosmos network. 

The ATOM token is used to help secure the network under its Proof-of-Stake consensus approach.

What are ATOM key features and how does it work?

Cosmos can generally be described using “layers of blockchain”: the consensus layer, the network layer, and the application layer. In Cosmos, the first two layers are merged into Tendermint BFT, allowing applications to be built as an “extension” without requiring developers to adhere to rigid constraints across the first layers. Applications connect to those layers through ABCI ( Application Blockchain Interface).

At the center of the Cosmos network is the Cosmos Hub. It functions as a ledger that logs the full history of the network-recording actions taken across all connected components of the Cosmos ecosystem. For instance, if two blockchains involve the same transaction, the Hub records it alongside the transaction on each respective blockchain. 

IBC (Inter Blockchain Communication) is a core part of how the network runs. It acts as a standard communication pathway, making it straightforward for blockchains in Cosmos to exchange data and information. The Hub also maintains a comprehensive message history through this system. Because events are logged this way, it is hard to deny that a transaction occurred. Blockchains built within the Cosmos Hub and linked through IBC are known as “zones”.

The network is built on Tendermint Core, an open-source toolset that can be configured to support many different application types. By combining networking and consensus functions into a single framework, it helps teams create blockchains with less friction, without needing to start from scratch.

Tendermint employs a Proof-of-Stake protocol, supporting interoperability while also providing instant finality, thousands of transactions per second, and stronger security. It is built around BFT SMR (State Machine Replication). Put simply, Tendermint Core uses a dedicated machine that mirrors servers and distributes them across the broader Cosmos network to secure the system, validate transactions, and finalize blocks on the blockchain. 

ATOM is the Cosmos Hub’s governance token and also has a part in the network’s Proof-of-Stake mechanism. It helps keep the set of computers running Cosmos Hub synchronized. The protocol relies on a limited set of 100 validators that perform block generation and validation. Token holders can delegate their ATOM to validators for a reward, though validator status is restricted to those with the largest ATOM holdings.

What can Cosmos be used for? 

Cosmos is used by developers of decentralized platforms looking for a customizable environment without the burden of high fees.

The Cosmos team focuses on improving four areas: scalability; compatibility; user experience; sovereignty. In practice, sovereignty means developers using the Cosmos SDK face no special constraints. Cosmos therefore provides a flexible set of tools that developers can adapt to deploy and run their applications. Since NFTs are currently unsupported, most use cases are centered on DeFi.

Where can you buy ATOM?

Cosmos (ATOM) can be purchased on the DEXs and CEXs listed on the market tab. Binance, OKEx, and CoinBase Pro are among the commonly used options.