Cryptocurrency markets got struck hard in January 2022, appearing to some to be at the start of a bearishness. Downmarket or not, the Cosmos environment and its $ATOM token is an outlier.
Between December 15 and February 6, $ATOM had gotten over 47% in worth. Because of the same amount of time, Bitcoin lost nearly 12% in worth, and Ether lost simply under 21%. Why is this taking place?
The following visitor post is composed by Dan Edelback, who joins us to talk about several prospective causes for the growing appeal of the Cosmos community. Dan is the CEO of Expedia and the Co-Founder of the Sentinel dVPN. Exidio is an end-to-end encrypted VPN innovation that leverages open-source code and decentralized networks, with the objective of ushering protected access to Web 3.0 transparently. The Sentinel Network is constructed utilizing the Cosmos SDK.
Cosmos Is King
Cosmos was developed to be an environment of interoperable however self-governing blockchains that can exchange info and tokens between each other in a permissionless way. Its focus is on autonomy, sovereignty, and scalability.
Cosmos intends to be the “Internet of Blockchains,” and has now drawn in 260 decentralized applications onto its blockchain. One factor for this development is that it has ended up being simpler for smaller-sized groups to construct on Cosmos because of an upgrade last April called the Inter-Blockchain Communication (IBC) procedure in tandem with the Cosmos Software Development Kit (SDK).
Cosmos, which includes a proof-of-stake agreement system, offers the Cosmos SDK to designers to make it possible for cross-chain bridges between Ethereum Virtual Machine (EVM) suitable blockchains. There are lots of such chains, a few of the larger names consist of:
- Ethereum Classic
- Binance Smart Chain
- IoTeX Network
- BitTorrent Chain
- Kucoin Chain (KCC)
On the one hand, there have been a lot of competitors between numerous crypto camps throughout social networks. While on the other hand, ingenious tasks such as Cosmos and Polkadot see the future of worldwide crypto adoption originating from cross-chain networks that construct bridges between blockchains. This procedure shows an exceptional user experience, whether they want to utilize Ether, Binance Coin, Matic, or ATOM tokens, due to the simple combination of crypto-currencies and enabling groups of all sizes to engage.
In the Polkadot system, there is a more advanced governance system where DOT holders have a lot more power. Polkadot allows the capability to link to as many as 100 other parachains, however, to end up being a para chain the task is going to require a great deal of DOT tokens, and to be able to win an auction to end up being a para chain. With the facilities need, Polkadot users are needed to have currently invested more than Cosmos.
Cosmos IBC is essentially various from Polkadot’s system. With Cosmos, there is a permissionless cross-chain exchange of information, that makes it possible for any Cosmos group to send out information to any Cosmos chain. Designers can develop a brand-new chain at any time and after that introduce it and send its tokens to the Cosmos Hub, and the Cosmos Hub can negotiate with and send out brand-new ATOM tokens to this brand-new chain that simply got developed. Universe holders have no control over who utilizes the Cosmos SDK.
Done right, cross-chain bridges like Cosmos’ IBC procedure have the included advantage of increasing scalability permitting much more users to be onboarded.
Ethereum Problems and Ethereum Killers
Unlike Cosmos, Ethereum tokens are amongst the groups most affected by present crypto-market instability and variations. Regardless of a great deal of attention on the topic for the previous year, the London Hard Fork, and many declarations from creator Vitalik Buterin, strategies and proposes originalities to repair the existing difficulties to the Ethereum and course-correct high Ethereum gas costs These efforts have not fixed the issue.
This consistent issue is a progressively crucial concern as decentralized applications developed for decentralized financing, decentralized exchanges, NFTs, and blockchain-based computer games ended up being mainstream over the previous 2 years. Decentralized monetary tools have led to a considerable boost in appeal. Since this writing, there have been over $5 million in charges in the past 24 hours on OpenSea alone. OpenSea is the biggest NFT market and is constructed on Ethereum.
Entering deep space produced by these problems with Ethereum are the so-called “Ethereum killers.” To put it simply, blockchains that are developed to be the house for decentralized applications, in the same method that Ethereum does and which offer more speed and lower deal charges. Some crucial examples of these are the Binance Smart Chain, Solana, and Cosmos.
Web 3.0 And Its Role In Crypto Stability
Web 3.0 is the current buzzword in the crypto and tech area. To dive in, initially let’s take a look at the history of the web and specify a couple of terms.
Web 1.0 describes the very first phase of the Internet where most sites were composed by web designers and designers. A lot of users merely saw websites. The around the world web took off in 1995 and ended up being an international phenomenon.
Web 2.0 describes the web as we understand it today– vibrant sites where most information is gone by the users. This began with social networks websites such as Facebook, MySpace, Twitter, and LinkedIn. Even websites like YouTube and Amazon are constructed on the same design. In such a way, users have ended up being the item.
Companies owning these sites keep enormous volumes of information on their users and offer this to marketers. Numerous business makes billions of dollars in marketing profits while the user is offered an excellent user experience however does not share in the revenues, and frequently has no option on who owns their privacy and information.
Web 3.0 is an idea based on taking the concepts of decentralized financing and using them for the decentralization of social networks and the web. What if a more reasonable revenue and ownership sharing system existed? What if users had rights to their information personal privacy and sovereignty, with the right to select to share their information or not, and if they did, to own their information and have the ability to a minimum share in the earnings produced from it. This is the hope of a brand-new, much better, much safer, and more reasonable online truth.
Building with Cosmos on Web.3
One task structure on Cosmos, Sentinel, has the objective to allow personal and censorship-resistant web gain access. By constructing Web 3.0 facilities, Sentinel looks to make sure online personal privacy rights and security.
VPNs are developed for the function of online personal privacy of their users. They are typically developed by the central business that keeps user information like other Web 2.0 gatekeepers.
Per one 2018 report, 26 VPN businesses were discovered offering their user details to 3rd parties. Another in 2020, discovered that 7 VPN businesses kept information on 20 million consumers that were dripped
Sentinel Network is developed to fix this with its decentralized platform, which is constructed utilizing the Cosmos SDK. The Sentinel environment is a worldwide network of self-governing decentralized virtual personal network (VPN) applications. The native token of the Sentinel environment is the $DVPN token.
Sentinel Network enables anybody around the world to mine $DVPN tokens with their unused bandwidth, hence making it possible for people to generate income from property or business bandwidth by supplying it to a network of dispersed and decentralized VPN applications constructed on the Sentinel structure.
Final Thoughts: The Future of Cosmos (ATOM)
Through a varied selection of DApps, Cosmos looks to get substantial market share from Ethereum and other decentralized application blockchains. Its cross-chain bridges and network specs use high speeds and low expenses for jobs.
Can Cosmos continue to grow and successfully take on Ethereum, Binance Smart Chain, and Solana? While there is no crystal ball, things have looked excellent considering that mid-December. Therefore it would be an error to neglect what is taking place on Cosmos.