What is COSMOS?
COSMOS (ATOM) is a decentralized ecosystem of independent blockchains that is the foundation for the next generation of internet technology. Instead of participating in divisions between crypto factions, COSMOS brings them together, enabling interoperability, currency exchanges, and an Internet of Blockchains (IoB). Atom (ATOM) is the proprietary staking coin used by the network.
How does COSMOS work?
COSMOS and Tendermint are a network of interconnect blockchains developed to become the foundation for tomorrow’s technology. It enables easy blockchain creation and deployment with crosschain compatibility. The project’s success hinges on these key factors.
- Cosmos is a dual-layer network that enables token, data, and asset exchanges between blockchains. Each chain on the network operates independently.
- Cosmos Hubs validate on-chain transactions and earn ATOM through staking. ATOM is the native cryptocurrency token of the Cosmos Network.
- New blockchains are created using the Cosmos SDK and Tendermint Core then connected through the IBC layer.
What is Staking?
To be able to validate transactions, Cosmos currently uses a consensus mechanism called Proof-of-Stake (PoS).
In Proof-of-Stake, users can stake their own funds to guarantee network stability. In return, users get rewarded in coins and a share of decision power on the network. You can imagine it as a bank account, generating income from interest on the money your bank holds for you.
Using imToken, you can stake the following coins:
Loom, Ether, DAI, Cosmos ATOMs, EOS and more.