How To Buy Cosmos (ATOM)?
A common question you often see on social media from crypto beginners is “Where can I buy Cosmos?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Cosmos on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Cosmos (ATOM)
First, you will need to open an account on a cryptocurrency exchange that supports Cosmos (ATOM).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Cosmos (ATOM) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Cosmos (ATOM)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Cosmos (ATOM) or Cosmos (ATOM) trading pairs. Look for the section that will allow you to buy Cosmos (ATOM), and enter the amount of the cryptocurrency that you want to spend for Cosmos (ATOM) or the amount of fiat currency that you want to spend towards buying Cosmos (ATOM). The exchange will then calculate the equivalent amount of Cosmos (ATOM) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Cosmos (ATOM) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Cosmos (ATOM)?
In other words, Cosmos is an ecosystem of blockchains that can scale and interoperate with each other. Before Cosmos, blockchains were siloed and unable to communicate with each other. They were hard to build and could only handle a small amount of transactions per second. Cosmos solves these problems with a new technical vision. In order to understand this vision we need to go back to the fundamentals of blockchain technology.
Rather than prioritizing its own network, its goal is to foster an ecosystem of networks that can share data and tokens programmatically, with no central party facilitating the activity. Each new independent blockchain created within Cosmos (called a “zone”) is then tethered to the Cosmos Hub, which maintains a record of the state of each zone and vice versa.
The Cosmos Hub, a proof-of-stake blockchain, is powered by its native ATOM cryptocurrency.
The project’s other goals include making blockchain technology less complex and difficult for developers thanks to a modular framework that demystifies decentralized apps. Last but not least, an Interblockchain Communication protocol makes it easier for blockchain networks to communicate with each other — preventing fragmentation in the industry.
Cosmos’ origins can be dated back to 2014, when Tendermint, a core contributor to the network, was founded. In 2016, a white paper for Cosmos was published — and a token sale was held the following year. ATOM tokens are earned through a hybrid proof-of-stake algorithm, and they help to keep the Cosmos Hub, the project’s flagship blockchain, secure. This cryptocurrency also has a role in the network’s governance.
Who Are the Founders of Cosmos?
The co-founders of Tendermint — the gateway to the Cosmos ecosystem — were Jae Kwon, Zarko Milosevic and Ethan Buchman. Although Kwon is still listed as principal architect, he stepped down as CEO in 2020. He maintains he is still a part of the project but is mainly focusing on other initiatives. He has now been replaced as Tendermint’s CEO by Peng Zhong, and the whole board of directors was given quite a substantial refresh. Their goals include enhancing the experience for developers, creating an enthusiastic community for Cosmos and building educational resources so greater numbers of people are aware of what this network is capable of.
The most essential element to this layered design is the Tendermint BFT engine, the part of the network that allows developers to build blockchains without having to code them from scratch.
Tendermint BFT is an algorithm used by the network of computers running the Cosmos software to secure the network, validate transactions and commit blocks to the blockchain. It connects to applications through a protocol called the Application Blockchain Interface.
Tendermint Byzantine Fault Tolerance (BFT)
Central to Tendermint is Tendermint Core, a proof-of-stake (PoS) governance mechanism that keeps the distributed network of computers running Cosmos Hub in sync.
In order for the participants (“validator nodes”) to power the blockchain and vote on changes, they need to first stake ATOM. To become a validator, a node needs to be in the top 100 of nodes staking ATOM. Voting power is determined by the amount of ATOM staked.
Users can also delegate their tokens to other validators, allocating votes to them while still earning a portion of the block reward.
Validators are incentivized to perform honestly, because users have the flexibility to easily switch between the validators they delegate ATOM to, depending on their voting preferences.
Cosmos Hub and Zones
The Cosmos Hub was the first blockchain to be launched on the Cosmos network. It was built to act as an intermediary between all the independent blockchains created within the Cosmos network, called “zones.”
In Cosmos, each zone is able to carry out its essential functions on its own. This includes authenticating accounts and transactions, creating and distributing new tokens and executing changes to its own blockchain.
The Cosmos Hub is tasked with facilitating interoperability between all the zones within the network by keeping track of their states.
Inter-Blockchain Communication Protocol
Zones are connected to the Cosmos Hub via the Inter-Blockchain Communication protocol (IBC), a mechanism that enables information to travel freely and securely between each connected zone.
Once a zone is connected to the Cosmos Hub, it is interoperable with every other zone connected to the hub, meaning blockchains with vastly different applications, validators and consensus mechanisms can exchange data.
The Cosmos team has also built the Cosmos software development kit (SDK), allowing developers to build blockchains using the Tendermint consensus algorithm.
The SDK minimizes complexity by offering the most common functionality contained among blockchains (i.e., staking, governance, tokens). Developers can create plugins to add any additional features they want to have.
Official website: https://cosmos.network/