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Cosmos is a cryptocurrency and blockchain platform that aims to create an interconnected network of independent blockchains called a "Blockchain of Blockchains." Developed by the Interchain Foundation, Cosmos seeks to address the scalability, interoperability, and governance issues faced by existing blockchain networks. At its core, Cosmos utilizes a unique consensus mechanism called Tendermint, which allows for fast and secure transaction processing across its interconnected blockchains.
Cosmos functions by establishing a hub-and-spoke model, where the central hub is called the Cosmos Hub, and the interconnected blockchains are referred to as "zones." The Cosmos Hub acts as a central hub that connects different zones, enabling them to communicate and transfer assets with each other. Each zone within the Cosmos network can have its own set of rules, governance, and consensus mechanisms while still being able to interact with other zones through the Cosmos Hub. The Tendermint consensus algorithm used by Cosmos ensures fast and secure transaction processing. It employs a Byzantine Fault Tolerant (BFT) consensus mechanism, where a predefined set of validators are responsible for confirming transactions and maintaining the network's security. This consensus algorithm eliminates the need for resource-intensive proof-of-work mining, resulting in faster transaction confirmation times and improved scalability. One of the key features of Cosmos is its ability to enable interoperability between different blockchains. The Inter-Blockchain Communication (IBC) protocol allows zones within the Cosmos network to exchange data and assets securely and efficiently. This interoperability opens up possibilities for various use cases, such as cross-chain asset transfers, decentralized applications (dApps) that span multiple blockchains, and collaborations between different blockchain projects. Moreover, Cosmos employs a governance mechanism that allows token holders to participate in the decision-making process. Holders of the native cryptocurrency, ATOM, can stake their tokens and participate in the consensus process as validators or delegate their tokens to validators. This governance model ensures that the Cosmos network remains decentralized and allows token holders to have a say in the platform's future development and upgrades.
With Finst it's easy to invest in ATOM and other cryptos.
Create a free account in 3 minutes to buy, sell and store Cosmos with no minimum amount. Your Finst account is accessible worldwide via mobile and desktop.
Verify your account and transfer euros to your Finst wallet with iDEAL, Bancontact or instant SEPA bank transfer.
Buy and sell over 240 digital assets and pay only 0,15% transaction fees. Store your ATOM in your secure Finst wallet.
Buy ATOM with a trading fee of 0,15% per transaction and no added spead. That's it. Crystal clear.
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