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Cosmos (ATOM) is among the Ethereum (ETH) rivals with probably the greatest market capitalizations. Nevertheless, it has failed to attract a lot consideration to itself and is shedding the recognition contest and capital to different so-called “Ethereum killer” networks corresponding to Cardano (ADA), Solana (SOL) and Tron (TRX).
Cosmos had its launch in 2019 and was developed to be an ecosystem the place a number of networks can speak to one another, in addition to overcome the scalability and interoperability issues that have an effect on many cryptocurrencies, together with Bitcoin (BTC) and its rival Ethereum.
The cryptocurrency is constructed round a hub-based structure, the place every hub is an impartial blockchain that acts as a bridge between different networks. This permits completely different cryptocurrencies to be exchanged and used with one another with out the necessity for a centralized crypto trade, strengthening the concept of an ecosystem freed from a centralizer.
However why does Cosmos not develop like an Ethereum killer?
Initially, Cosmos solves the issue of lack of communication between networks solely in its ecosystem or hubs. Thus, not simply any blockchain can attain Cosmos and trade good contracts, for instance. This breaks the expectation that Cosmos may very well be a robust Layer 0 community.
One other issue hindering Cosmos’ development is the worth of the token to its ecosystem. You’ve got in all probability heard that creating on the Ethereum blockchain is pricey and that charges are paid by way of the community’s native token, ETH. Nevertheless, the identical significance that Ether has for the main good contract platform, ATOM doesn’t have for Cosmos.
On the altcoin community, appchains can create their very own logic, which makes ATOM pointless since this know-how runs its sovereign blockchain as an alternative of a sensible contract carried out on one other chain.
Furthermore, the ATOM group is much faraway from the supporters of different ETH rivals corresponding to Solana and Cardano. The group round it is rather essential for a cryptocurrency as a result of, with out it, hardly any undertaking — even a critical one like Cosmos — can survive.With out with the ability to entice extra of an viewers to itself, the cryptocurrency could proceed to lose floor not solely to good contract platforms but additionally to altcoins with no actual worth proposition, corresponding to Dogecoin (DOGE) and Shiba Inu (SHIB).
Does this imply that Cosmos is a foul undertaking?
No. The altcoin, despite the fact that it wants to beat some challenges, stays within the prime 10 property with probably the most growth exercise, proving that its community is rising and that extra individuals could quickly use it.
Additionally it is price noting that, though it’s not one of many cryptocurrencies with a big group, Cosmos is frequently current on social media, one thing that can be crucial.
As well as, it has made essential partnerships, and blockchain business tasks are utilizing its community. An excellent instance of that is the arrival of the DeFi dYdX protocol on its blockchain.
Different benefits of Cosmos are:
- Scalable, low-fee community;
- Passive earnings by way of staking;
- Third-generation blockchain;
- Has attracted consideration from DeFi dApps;
- Extra developer-friendly setting.
