Atom Coin – What is Atom Coin? atom coin is the native currency of the Cosmos Hub, an open-source software development kit (SDK) that connects and secures a network of independent blockchains. The SDK uses classical Byzantine fault tolerance (BFT) consensus protocols like Tendermint to verify transactions and execute blocks to the chain.
The system also offers a range of innovations to simplify software development, improve performance, and heighten security. The system binds different blockchains together, but each one has a unique software stack and autonomous management.
Decentralization
Decentralization is the process of transferring authority and responsibility for public functions from a central government to local government bodies and/or the private sector. This can result in the reorganization of public service delivery systems and can also improve the responsiveness, efficiency, and effectiveness of government programs.
In countries with strong democracies, decentralization of government services has become increasingly embraced as a basic democratic principle. It allows people to directly influence the direction of their country’s future by electing and governing their own governments, which are more accountable for delivering services that meet their needs.
As a result, it can also reduce the risk of corruption and mismanagement, which are common in centrally-controlled systems. It can also increase transparency and encourage participation by the people in the decision-making processes.
Another important aspect of decentralization is that it can increase the depth and legitimacy of democracy by allowing people to exercise their power at lower levels of government, which are often closer to the people. Moreover, it can help governments respond more quickly to citizen demands for service.
A decentralized system is not necessarily more efficient, but it can be more convenient and cheaper to operate. For example, it can require fewer machines to verify transactions and use less electricity than a conventional system.
It can also provide a more secure environment than centralized systems, which can be vulnerable to hackers and other malicious actors. In addition, it can allow for a greater number of users to participate in the network.
In addition, atom coin has a unique proof-of-stake (PoS) algorithm that rewards tokens for validating transactions on the network. These tokens are called “ATOMs,” and new ATOMs are created every time a transaction is approved by a validator.
ATOMs are staked by users in exchange for a proportion of the block reward. Staking is an effective way to control the network, and a great way for new investors to get involved with atom coin. Currently, a number of exchanges and venture capital firms stake a large portion of the network’s voting power.
Interchain connectivity
Cosmos is a network that unites heterogeneous blockchains with a common infrastructure to make cross-chain transactions faster and cheaper. The project aims to solve problems that plague blockchains today, such as gross energy inefficiency and poor performance.
The platform relies on the use of the Inter-Blockchain Communication (IBC) protocol to connect Hubs and Zones, allowing users to freely exchange assets and data between them. This innovation allows the interoperability of different blockchain systems, while keeping the liquidity intact.
To connect heterogeneous blockchains, IBC uses a series of “relays” that act as intermediaries to transfer secure messages between them. These relays are also responsible for validating and forwarding transactions from one chain to another.
In order to keep the interoperability of different blockchains safe, IBC requires a security subsidy that is payable by the holders of a particular token. This subsidy ensures that the value of the IBC token is stable over time.
While this mechanism is not inherently problematic, it does have its drawbacks. For example, a validator’s staked tokens aren’t insured in the event of a crash, so they are at risk of losing their entire holdings if they commit a security breach.
On the other hand, Tendermint’s consensus mechanism incentivizes validators to behave honestly by requiring them to stake a security deposit with their tokens. This way, a validator is incentivized to protect their staked tokens and participate in the network’s governance processes.
The team behind the Cosmos network, which was founded in 2014 by Jae Kwon and Ethan Buchman, developed Tendermint in 2014. They authored a white paper in 2016 and released the software in 2019.
As of May 2019, there are 49 blockchains that have utilized the Cosmos SDK to build their own networks. These blockchains are tethered to the Cosmos Hub and have a shared layer of security between them.
These networks are all connected by the Hub, which maintains a record of each of the zones’ states and transfers tokens between them. This enables Cosmos to scale and create an “Internet of blockchains,” a network of crypto networks that can share data and tokens programmatically, with no central party facilitating the process.
Tendermint
Tendermint is a proof-of-stake (PoS) blockchain consensus algorithm that runs on a Byzantine Fault Tolerant (BFT) protocol. This allows up to 33% of network validators to fail without adversely affecting the network’s ability to function.
Tendermint’s POS mechanism also includes a security deposit element to the “stake,” wherein users stand to lose their staked tokens if they behave maliciously. This helps eliminate the “nothing-at-stake” problem plaguing early PoS systems.
As a result, Tendermint is known as an extremely secure network. In addition, it is scalable in the sense that it can handle a large percentage of validators failing without adversely affecting the network.
The Tendermint Core is a proof-of-stake blockchain that connects to applications through the Application Blockchain Interface (ABCI). This enables Cosmos to run on top of other Layer 1 networks such as Ethereum.
This scalability helps reduce the cost and complexity of developing sovereign blockchain applications. It also improves interoperability by allowing heterogeneous chains to exchange value and data.
Another key component of Tendermint is the Inter-Blockchain Communication protocol, which functions like a TCP/IP for blockchains. It enables cross-chain swaps and other inter-blockchain actions to ensure secure data transfer among chains.
To support this functionality, the Cosmos Hub is a Proof-of-Stake (PoS) chain that serves as the IBC packet routing hub for other chains within the Cosmos ecosystem. In turn, this allows for the scalability of the IBC protocol and interoperability between different blockchains.
Tendermint also has a software development kit (SDK) that allows developers to create decentralized apps (dApps) using the Tendermint consensus engine and BFT consensus algorithm. This tool is said to simplify the process of building a blockchain by making the coding process easier for developers to understand and execute.
The Cosmos SDK uses a modular framework to allow developers to build and deploy secure blockchain applications on Tendermint. It also has a variety of tools to help developers build dApps in a more streamlined and efficient manner. For example, it supports Angular and React – popular frameworks for JavaScript. Moreover, it provides an API that can be used to integrate a dApp’s functionality with other dApps in the network.
Staking
Staking is the process of holding a crypto token in a wallet, while actively voting for changes on a blockchain. It is an important part of securing a blockchain, and it can be a great way to earn rewards without having to mine the coin yourself.
Stakestaking can be done through major centralized exchanges like Binance or via third-party staking platforms. These staking platforms usually offer modest APYs and require little user investment, but they can be risky because if an exchange fails or a validator is compromised, you could lose your coins.
Another popular method of staking is to run your own validator on a wallet. This can be a hassle, though, as it requires that you maintain your own computer and internet connection. You can also delegate your ATOM tokens to a validator, which allows you to vote for blocks and receive a percentage of the block reward instead of running the validator software yourself.
There are many staking services available for ATOM, and most of them support a variety of staking protocols. Some even allow you to choose which validators you delegate your ATOM tokens to, allowing you to select the ones that align with your voting preferences.
Keplr is a popular wallet that supports multiple currencies including ATOM, and it has an easy-to-use interface for staking. In addition to staking, users can also transfer tokens between accounts and withdraw them at any time.
StaFi is an online staking platform that offers liquid staking, which means you can stake your ATOM tokens without having to worry about a 21-day lockup period. This is a feature that isn’t widely available on other staking services, and it can be a good way to invest in a project without having to wait so long to get your money back.
Staking your ATOM on StaFi is an easy way to ensure that the blockchain has a reliable pool of validators and earn a portion of the block reward. You can also use StaFi’s staking calculator to see how your staking yield will change over time, as different validators will affect your staking yield differently.
