Cosmos is described as a blockchain 3.0, it is a dual-layer ecosystem that allows interconnection between the various existing independent blockchains, as well as serving as a platform for the development of new decentralized applications. In other words, the Cosmos project is capable of interconnecting networks such as Bitcoin and Ethereum.
Advantages and Disadvantages Cosmos (ATOM)
One of the main objectives of Cosmos is the interconnection between the different networks, as here to a part several blockchains have emerged independent of each other by means of the Inter Block Chain (IBC) technology. The project aims to and has succeeded in finding the solution. Thus the platform has succeeded in connecting the various blockchain networks.
As mentioned above, the blockchain platform consists of two layers. The first is made up of the network layer and the consensus layer, the second is the application layer. Regarding the interoperability operation it is composed of two parts, called Zones and Hubs. The Zone chain is each independent blockchain, for example Bitcoin. The Hub is the chain for the interconnection between chains. The IBC technology allows the joining between blockchains with different protocols such as PoW and PoS.
As for the application layer is known as SDK, this software is intended for developers to launch their own projects. The development strategy is focused on modularity, which allows for easy construction of the code through existing fragments. Thus some of the most powerful projects such as Binance Chain, Crypto.com or Kava.
As a comment to add, the platform allows Staking, this means that it uses the Proof of Stake (PoS) consensus protocol. This is intended to encourage network users to keep the network active by means of validator nodes.
However, one of the main attractions of the project is its policy on the development of new applications, since it is totally free of charge.
Scalability is another feature of the project, presenting a solution suitable against the number of transactions per second possible in older blockchains such as Bitcoin or Ethereum.
Advantages of Cosmos (ATOM):
- It has the support of important projects, in it have been developed under this platform, such as Binance CHain
- Own sovereignty for the generated blockchains, unlike other blockchains the Cosmos developer tool allows the creation of your own blockchain with its own governance structure with normal and independent laws from Cosmos.
- Interoperability, Cosmos allows interconnection between different networks thanks to the IBC tool.
- Free application development, the Cosmos project allows the creation of applications without the need for payment of any kind.
Disadvantages of Cosmos (ATOM):
- Relative low capitalization of the ATOM token, this is mainly because the platform does not enforce the use of its own token for the payment of transactions.
- The project goes unnoticed. Despite the potential of the project it is almost anonymous. One of the problems is that by serving as an engine for other projects such as Binance Chain or Kava, this project goes into the background. If to this circumstance we add the low capitalization of the token in comparison with others the project is even in a more hidden position.