The future creators of Cosmos decided to create several parallel blockchains that were secure and interoperable in 2017. The Proof-of-Work consensus algorithm would not allow this.
Cosmos crypto became easy to use and compatible with many blockchains.
The main advantage is high scalability. All these advantages help the project to develop, and the price of ATOM cryptocurrency is growing. What will happen with the ATOM coin in the next five years? We analyzed ATOM price history, important news and fundamental reasons for the asset to grow or fall
What is Cosmos (ATOM)?
Cosmos is an ecosystem made up of blockchains that can interact with each other. Until the moment of its creation, each blockchain was isolated and could not intersect with the rest. Besides, it was difficult to shape and achieve high transaction speed. Cosmos offers a new technological vision.
In Cosmos, the blockchains work as an independent parallel, powered by the BFT algorithm. The whole system operates on the Tendermint consensus, created in 2014 by Jae Kwon. Cosmos creates an ecosystem of blockchains that can scale and interoperate with each other.
The Cosmos project has several important technical features that allow it to achieve interaction goals: scalability, Byzantine Fault Tolerance, Proof-of-Stake algorithm, and cross-blockchain bridges.
Scalability is an essential feature of any project aimed at supporting future application development. Cosmos plans to increase its scalability using various other compatible networks connected through zones. These zones operate in parallel to increase transaction throughput. Each zone has its own register, agreed protocol, and the main language.
The PoS method is based on a set of semi-trusted nodes for voting by blocks. As long as more than a quarter of the voting nodes are honest, the protocol will work without any problems. Consensus nodes need to provide a share of ATOM tokens as collateral. Any node that finds that it is acting with malicious intent will be deleted from the system, and its ATOMs will be burned.
Validators running on cross-chain bridges are synchronized with the main Cosmos Hub. However, they also launch a full node on the opposite blockchain on the other side of the bridge to confirm that the corresponding amount has been fixed. Original tokens are blocked in a scenario with several signatures until the bridge verification tool unlocks them. Accordingly, it destroys the tokens in the blockchain with cross bridges. This allows you to transfer digital assets in different chains.
ATOM is a native cryptocurrency used to pay transaction fees at the Cosmos main center, as well as to participate in the consensus process. Validators rely on ATOM to earn both a reward for blocking and a transaction fee.
In order to become a validator, you need to link their ATOMs (blocking them) with enough ATOMs to be among the top 100 balances with the most valuable accounts on the network. So, the voting power is determined by the amount of ATOM tokens stored. Stakers can delegate their tokens to other validators, sharing the block reward with them.
Cosmos Price Prediction 2021
There is no doubt that Cosmos is a promising and prospective project. However, the predictions shown below should not be suggested as the only scenario of development. The crypto market is extremely volatile, so do your own research before investing in any of them.
Last year, ATOM cryptocurrency updated its all-time highest value. On the infamous ‘black Thursday’ (13th of March), the price of Cosmos’ native cryptocurrency drowned to $1.13 mark. However, the price began to correct, and by March 2021, it’s about $20.
According to Wallet Investor and Digital Coin Price, the ATOM rate will continue to grow in a matter of a year. By the end of 2021, it might reach almost $30. It is 63% of potential growth. Gov. Capital is more bullish and predicts a double growth – $40.
So, if you invested $100 today, your investment will be worth about $20 in a year.
Cosmos Price Prediction 2025
Considering current growth rates, the coin could reach $62-64 by the end of 2025. Digital Coin Price predicts the highest possible mark of $100 in the following four years. Gov.capital overestimates the bar and predicts growth to $160.
Cosmos Long-Term Price Prediction 2021-2025
Why can Cosmos’ cryptocurrency price grow in a long-term perspective? Let’s be clear: Cosmos is another smart contract platform. You might say ‘one more Ethereum.’ However, its architecture is brilliant from a technical point of view. The main advantage of Cosmos is its superior and easy-to-use software development kit. With all of that stuff, the main goal of the project is to reach enormous scalability – the main Ethereum’s drawback.
If the developers make high scalability happen, Cosmos price might go to the moon. As well as developers might shift to this project from Ethereum. Time will tell.
Frequently Asked Questions
In this section, we answer the most important questions concerning the Cosmos project and ATOM cryptocurrency.
Is Cosmos (ATOM) a good investment?
Cosmos is a great project concerning its roadmap and technical details. How can one understand that the project is worth investing in? First of all, let’s remember the Cosmos’ ICO. Back in 2017, this development’s representatives raised 17 million dollars in 28 minutes. You might say that ICO cannot show how legit is the crypto project.
There is another point – Cosmos mainnet was launched only four months after the testnet. Impressive, huh? Moreover, ATOM trading volume is one more indicator of liquidity: it ranges from $0.5 to $3 million per day.
What will Cosmos be worth in 2025?
According to our recent research, Cosmos might reach $100 in five years. This scenario can become possible only if the project will spread its vision and the consumers will adopt it.
Where can I buy Cosmos (ATOM)?
Since the price for ATOM is quite affordable, Cosmos digital asset might become a great addition to the crypto portfolio. By the way, Changelly is a convenient place to exchange some coins for ATOM. Check out the cross-rates and choose the payment option that suits you the best (bank transfer, Mastercard, Visa, and Apple Pay).