While the market for cryptocurrency records a new collapse, Cosmos moves against the trend and sets its new record, surpassing the $ 40 mark. A result which comes at the end of a week in which its price has grown in the order of 13,95%.
A trend that consolidates what already happened in August. When the price of ATOM it had grown from $ 15 to $ 20, taking advantage of the launch of an interface DeFi cross-chain called Emeris and opening a bridge with Ethereum.
As a result of the growth achieved in recent days, barely affected by the crisis of the last few hours, Cosmos stands at 20 th in the market capitalization ranking of CoinMarketCap. With considerable possibilities to scale it further.
What is Cosmos and how it works
Cosmos (ATOM) is a project born in the course of 2016, when Jae Kwon published the Gnuclear white paper. The initial project, which involved the use of a system blockchain fully decentralized interoperable, made possible by the use of the consensus protocol Tendermint, it then evolved with the input of other developers. Moreover, arriving at the change of the original name, transformed into Cosmos. The private token sale began soon after, aimed at providing resources to the project's development plan. It soon turned out to be a real success.
How does Cosmos work? Its network is basically divided into three levels. On the first, the transactions are processed and the status of the network updated, the second, called "Networking", allows communication between transactions and the blockchain, while the third level is entrusted with the task of managing the consensus mechanism, or the nodes of the system. The concrete at the three levels, aimed at allowing developers to create applications, is entrusted to a complex of open source tools.
The importance of Tendermint
Tendermint, the multilevel consensus protocol that allows developers to build blockchains without the need to code from scratch. A high-speed system which makes it possible to process the large flow of data between multiple blockchains being of the type Proof of Stake (PoS). The tests conducted on Tendermint have in fact formalized its remarkable ability in this sense. In fact, the number of transactions per second made possible by its presence stands at over 10 thousand.
It should also be stressed that this consensus mechanism is the basis of a large number of similar projects. Including also that of diem, the Facebook cryptocurrency that hopes to make its debut in the coming months.
Cosmos mining: how does it happen?
Concerning instead the mining Cosmos, already the fact that the Proof of Stake consensus mechanism is used guarantees the project highly appreciated characteristics. That is the same towards which Ethereum is also starting, in practice greater convenience and speed. Which is combined with greater eco-sustainability compared to the Proof of Work (PoW) on which the Bitcoin.
As a result of this choice, every six seconds the system creates a block, which contains all the information and transactions validated in the previous one. It is precisely the system that chooses, in a completely random way, a first node within the network, then selecting the others who will participate in the validation process. The nodes selected in this way are finally compensated with the distribution of the ATOM tokens.