What is Cosmos Network – How to buy ATOM tokens

Cosmos is a network of independent blockchains that aims to create the Internet of Blockchains, a decentralized web where any blockchain can communicate, share data, and transact with any other. In this blog post, we will explore what Cosmos is, how it works, and how you can buy and store its native token, ATOM. We will also discuss the benefits and risks of investing in Cosmos and the future of this ambitious project.

What is Cosmos, and why does it matter?

Cosmos is not a single blockchain but a network of many blockchains, each with its own application, governance, and consensus mechanism. These blockchains are called zones, and they can connect through the Cosmos Hub, a central blockchain that acts as a router and a security provider. The Cosmos Hub is powered by the ATOM token, which is used for staking, governance, and fees.

Cosmos: The Internet of Blockchains

The vision of Cosmos is to enable interoperability and scalability among the thousands of blockchains that exist today and the ones that will be created in the future. By allowing different blockchains to communicate and exchange value, Cosmos hopes to unleash the potential of blockchain technology and create a more open, fair, and efficient Internet.

Tendermint: The engine of Cosmos

One of the critical components of Cosmos is Tendermint, a software that provides a general framework for building and running blockchains. Tendermint consists of two parts: Tendermint Core and Tendermint BFT. Tendermint Core is a peer-to-peer networking protocol that connects the nodes of a blockchain. Tendermint BFT is a Byzantine Fault Tolerant (BFT) consensus algorithm that ensures the security and finality of the transactions.

Tendermint allows developers to create a blockchain application in any programming language without worrying about the networking and consensus layers. This makes it easier and faster to launch new blockchains and to customize them according to the specific needs of the users.

Zones and Hubs: The building blocks of Cosmos

As mentioned before, Cosmos is a network of blockchains, or zones, that can connect through hubs. A zone is a blockchain that runs on Tendermint and has its own application logic, state, and validators. A hub is a blockchain connecting multiple zones, facilitating cross-chain communication and security. The Cosmos Hub is the first and most important hub in the Cosmos network, but there can also be other hubs.

The zones and hubs communicate through a protocol called Inter-Blockchain Communication (IBC), which we will explain in the next section. The zones and hubs are sovereign, meaning they have their governance and can operate independently. However, they can also benefit from the shared security and interoperability of the Cosmos network.

How does Cosmos work, and what are its key features?

One of the main challenges of blockchain technology is the lack of interoperability among different blockchains. Each blockchain has its own data format, consensus mechanism, and security model, making it hard to exchange information and value. To solve this problem, Cosmos introduces a protocol called Inter-Blockchain Communication (IBC), which allows any two blockchains that follow some basic standards to communicate and transfer tokens and data.

IBC: The protocol for cross-chain communication

IBC is a generic, flexible, and secure protocol that can support various types of transactions, such as token transfers, atomic swaps, multi-chain smart contracts, and Oracle data. IBC works by establishing a connection between two blockchains and then sending packets of data containing the transaction information. The blockchains verify the packets using the proofs of the state of the other chain, and then execute the transaction accordingly.

IBC is designed to be compatible with any blockchain that can provide the necessary cryptographic proofs, such as those based on Tendermint, Ethereum, or Bitcoin. This means Cosmos can connect the blockchains within its network and the existing and future blockchains outside of it. This way, Cosmos can bridge the different blockchain ecosystems, enabling a seamless and interoperable decentralized web.

Staking and Validators: The Governance of Cosmos

Another key feature of Cosmos is its staking and governance model, which is based on the ATOM token. ATOM is the native token of the Cosmos Hub, and it has three main functions: staking, governance, and fees.

Staking is the process of locking up ATOM tokens to secure the network and earn rewards. The Cosmos Hub uses a Proof-of-Stake (PoS) consensus mechanism, which means that the validators, the nodes that run the network, are chosen based on the amount of ATOM they stake. The validators are responsible for validating the transactions, proposing new blocks, and participating in the governance. The validators earn rewards from the block rewards and the transaction fees, but they also risk losing their stake if they act maliciously or fail to perform their duties.

Governance is making decisions about the network and its parameters, such as the inflation rate, the block size, or the upgrade proposals. The governance of the Cosmos Hub is decentralized and democratic, meaning that every ATOM holder can participate and have a voice. The ATOM holders can submit proposals, vote on them, and delegate their voting power to other users or validators. The governance system is designed to be adaptive and responsive to the needs and preferences of the community.

Fees are the payments the users must make to use the network and its services, such as sending transactions, creating zones, or connecting to hubs. The fees are paid in ATOM, compensating the validators and preventing spam and congestion. The fees are dynamic and depend on the supply and demand of the network.

What is an ATOM token?

ATOM is the native token of the Cosmos Hub, which is essential for the functioning and security of the Cosmos network. ATOM has a limited supply of 383,004,646 tokens, and it is not pre-mined or ICO-funded. The ATOM tokens were distributed through a public fundraiser in 2017, where 168 million ATOM were sold for $0.1 each. The remaining ATOMs were allocated to the Cosmos Foundation, the core developers, and the early contributors.

The ATOM token is not meant to be a currency or a medium of exchange but rather a utility token that grants access and participation in the Cosmos network. As we explained, ATOM is used for staking, governance, and fees. By staking ATOM, the users can secure the network and earn rewards. By using ATOM for governance, the users can influence the direction and the evolution of the network. By paying fees in ATOM, the users can use the network and its services.

How to buy ATOM

If you are interested in buying ATOM tokens, you have several options. One of the easiest and most convenient ways is to use BitHermes.com, a platform that allows you to buy and sell cryptocurrencies with fiat money, such as EUR, USD, or other cryptocurrencies. BitHermes.com supports ATOM and many other popular cryptocurrencies, offering low fees, fast transactions, and high security.

To buy ATOM on BitHermes.com, just create an account and choose your preferred payment method, such as credit card, bank transfer, or PayPal. Then, select the amount of ATOM you want to buy and confirm the transaction. You will receive your ATOM tokens in your BitHermes.com wallet in minutes.

Use BitHermes to enter the world of DeFi.

Another option to buy ATOM is to use a decentralized exchange, such as Uniswap, Sushiswap, or PancakeSwap. These platforms allow you to swap cryptocurrencies using smart contracts and liquidity pools without intermediaries. To buy ATOM on a decentralized exchange, you need a wallet that supports the exchange protocol, such as MetaMask, Trust Wallet, or WalletConnect. Then, you can connect your wallet to the exchange website and select the ATOM token and the amount you want to swap.

However, you also need to have some of the native tokens of the blockchain that the exchange runs on, such as ETH for Uniswap, BNB for PancakeSwap, or SUSHI for Sushiswap. These tokens are used to pay for the gas fees, which are the costs of executing the transactions on the blockchain. They are also used to swap with ATOM since there may not be a direct trading pair between your currency and ATOM. You can use BitHermes.com to buy these native tokens as well and then transfer them to your wallet. Once the transaction is confirmed, you will receive your ATOM tokens in your wallet.