How Many Atom Coins Are There

Acquire more about Cosmos and the “internet of blockchains.”

If the cryptocurrency manufacture is to achieve its full potential, it’s essential that blockchains tin can talk to each other — known as “interoperability.” Cosmos (ATOM) is 1 of several blockchains tackling this issue, and it’southward already gained traction with some big-name crypto projects.

Here’s what investors demand to know.

one. It’s gained almost 370% this year

Cosmos reached an all-time high of $44.59 last week (Sept. 19), only the price has since fallen slightly. Even so, at the time of writing Cosmos was up well-nigh 370% since the offset of the year, according to CoinMarketCap information. This is a significant jump, but not so dramatic when y’all consider that the full crypto global market capitalization has increased by most 140% in the same period.

Cryptocurrencies can be extremely volatile, which means there is potential for dramatic losses besides equally enormous returns. That’southward why it is important to just invest money y’all can afford to lose, and make certain you are comfortable with the risk involved.

ii. It’s been dubbed the “internet of blockchains”

I effect faced by the crypto world is that individual blockchains aren’t great at communicating with each other. That’s not ideal if you consider the vision of transferring crypto assets globally in an like shooting fish in a barrel and affordable manner. There’s no easy analogy, but it would exist a flake like Walmart simply accepting Visa payments, while Whole Foods but took Mastercard.

That’s why interoperability matters. This is the driving force behind Creation, and the reason it’s seen as the cyberspace of blockchains. Cosmos is also built to be scalable and process transactions rapidly and cheaply. Information technology says each transaction on the network costs $0.01. To requite you some context, CoinMetrics said in March that the median fee on Ethereum (ETH) was around $ten.

3. Cosmos uses hubs to ensure blockchains can communicate

Some interoperability solutions don’t attempt to send tokens between the networks. Instead, they apply smart contracts to lock those tokens in on ane platform, and then mint a respective number of tokenized replicas on the other. For example, rather than sending 5 BTC from the Bitcoin blockchain to Ethereum, this method might lock the v BTC and issue five pegged tokens such as Wrapped Bitcoin (WBTC) on another blockchain.

In contrast, Creation uses hubs to allow blockchains to actually communicate with one other. Each hub can connect to a number of other blockchains. This works through Cosmos’ ain tool — Inter-Blockchain Communication (IBC), which it launched earlier this twelvemonth.

4. It has over 255 apps running on its network

Adoption is important for any cryptocurrency. Peachy technology is but great if people actually employ information technology. This is why it’s good to meet that Cosmos has 255 applications running on its network, including large names like Binance Smart Chain and Crypto.com.

One area for investors to watch carefully is the Creation fee structure. Where, say Ethereum, generates revenue by charging transaction fees in ETH for all the applications on its network, Cosmos does not piece of work this way. For example, Crypto.com users pay fees for Creation apps in its native token (CRO), not in ATOM.

5. It’s available from most major crypto exchanges

U.S. crypto investors tin buy ATOM tokens from several acme cryptocurrency apps and exchanges. These include:

• Coinbase
• Binance.Us
• Kraken

six. In that location are other blockchains in this space

Any the investment, it is important to fully understand the competitive space. And in the case of Cosmos, that means looking at interoperability blockchain solutions as well as programmable blockchains.

The other large players in interoperability are Polkadot (DOT) and Barrage (AVAX). Both work slightly differently, and have also seen above-average toll increases this yr. Indeed, AVAX has increased around 2,000% since Jan. 1.

seven. Regulation could complicate the decentralized finance (DeFi) industry

Decentralized finance is a group of products that cutting the middleman (usually banks) out of financial services. A number of the applications on Cosmos’ network fall into this category.

Right now, regulators are worried that these products operate as pseudo banks, but without the same consumer protections traditional bank accounts offer. From the SEC to the Treasury, there’southward a growing push for increased regulation. We don’t yet know what form that regulation will take, simply it could impact whatever crypto with DeFi connections, especially if information technology is heavy-handed.

Bottom line

Cosmos is a solid cryptocurrency that solves an of import problem for the crypto industry. Connecting blockchains allows private cryptos to excel in one particular expanse, then cooperate with other blockchains that have complementary strengths. Each currency does non take to solve
all
the bug to succeed.

Even so, in that location’s also a lot of uncertainty surrounding regulation in the manufacture right now. Crypto investors need to pay attending to the potential impact this could accept on the market.