Blockchain insights

An internet of blockchains? Explore the Cosmos (ATOM)

4 min read

A new addition to the Yield App platform, Cosmos’ ATOM token has been making waves by driving innovation and new applications across multiple blockchains. The heart of the network, The Cosmos Hub, is a revolutionary concept aimed at enhancing interoperability by connecting diverse blockchains in a unified network.

ATOM is known for its utility in powering inter-chain transactions, but there’s a lot more to this token as the Cosmos ecosystem continues to evolve. Let’s test how well you really know ATOM and how you can leverage its growth potential.

1. ⚛️ ATOM’s an interoperability powerhouse

The Cosmos hub has made significant achievements in establishing a scalable and interoperable system where different blockchains can share data seamlessly. It bridged different networks like Bitcoin and Ethereum and used ATOM as the primary token for staking and governance. 

2. ⛓️ It pioneered the IBC protocol

Multiple innovations contribute to Cosmos’ inter-chain system. But the biggest factor is the Inter-Blockchain Communication (IBC) protocol that enables independent blockchains to transfer assets between each other without a security breach. This IBC protocol uses a packet-based communication where units of data are created into packets that can be sent between blockchains.

3. ✨ Inter-chain transactions are seamless

ATOM’s purpose extends beyond an interoperable chain system. It isn’t just about connecting chains, it’s about making the whole process as smooth as butter. If you think of a world where each island has its own unique currency, Cosmos not only connects these islands but also ensures that currencies get automatically converted when inter-island transactions happen.

4. 💱 Transaction fees are flexible

Staking your ATOM allows you to earn transaction fees and staking rewards. Since the Cosmos network allows for a multi-token fee mechanism, validators or nodes within the network can choose which tokens are eligible for use as transaction fees. Any independent blockchain within the Cosmos Hub, also called “zones”, can choose to opt out of participating within the CosmosHub IBC anytime.

Using the Cosmos Hub’s services to move assets between different blockchains lets users incur interchain token transfer fees. Each validator chooses which type of tokens will be accepted as fees and how much each fee is. This means fees are by option - different tokens can be used for fees, and validators decide which ones.

5. 🌐 It’s creating an internet of blockchains 

Cosmos network established a Hub where “zones” or blockchains are connected using the IBC protocol. The Hub is a network where one million chain apps are interconnected across one million sovereign blockchains. However, zone blockchains will have their own set of rules and can still do anything they want through IBC.

6. 🚸 ATOM powers cross-chain DEX activity

Exchange across various blockchains can be seamless and secure with various cross-chain DEXs integrated into the Cosmos ecosystem. For instance, Osmosis is one of the largest DEX on Cosmos that makes cross-chain trading efficient. The Squid DEX also powers swaps and contract calls across chains in a single click. Altogether, these cross-chain DEXs let users have access to higher liquidity for smooth trading and price stability.

7. 📈 Your ATOM can work harder for you

ATOM isn’t just a quiet player. It can be out there hustling for you. In fact, it has great earning potential for passive income. By deploying Yield App you can earn up to 8.5% per year on your ATOM and even swap it for other assets.

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8. 💰 It’s easy to earn ATOM with Yield App

Staking your ATOM isn’t just a high-five to security. It’s also your golden ticket to earning more crypto assets. If you’re unsure where to start, Yield App offers a user-friendly interface and tools to make earning with your ATOM easier. By creating an account, depositing your ATOM tokens, and choosing our Earn+ product, you can take advantage of up to 8.5% APR. Once your ATOM is deployed, you can sit back and start earning rewards. 

Supercharge your earnings with ATOM on Yield App today!

DISCLAIMER: The content of this article does not constitute financial advice and is for informational purposes only. The price of digital assets can go down as well as up, and you may lose all of your capital. Investors should consult a professional advisor before making any investment decisions.


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