Cosmos Network [ATOM] What is it and how does it work?

Table of Contents

Since the arrival of the first blockchain, the crypto sector has grown and evolved incessantly. When a new technology appears, at every step you take you may encounter obstacles to overcome. Cosmos Network [ATOM] is a project that wants to help solve any of these problems.

What is Cosmos Network [ATOM]?

Cosmos Network is a project whose objective is to achieve a decentralized and interoperable “Internet of blockchains”.

This is achieved thanks to different open source tools, such as:

  • Tendermint: The purpose of this tool is to package the network and consensus layers, reducing the creation time of a chain from years to weeks.
  • Cosmos SDK: It is responsible for simplifying the process of creating blockchain applications, based on security and modularity. We will talk more carefully about the Cosmos SDK later.
  • IBC: It is an interblockchain communication protocol that can be considered as TCP / IP for blockchains.

Cosmos also solves the scalability problem that many projects have encountered. To do this, it takes advantage of two types of scalability, vertical and horizontal.


Cosmos Hub

Launched on March 13, 2019, Cosmos Hub is the first blockchain launched in the Cosmos network. This network acts as a router and will facilitate transactions between the different blockchains that make up the Cosmos ecosystem.

The token associated with Cosmos Hub is ATOM, but the cosmos network will support many more tokens.


ATOM is the cryptocurrency of the project, this token has 3 applications of use:

  • Spam Prevention: ATOM is used in a manner similar to Ethereum’s GAS to pay transaction fees, having a cost avoids unnecessary use of the network.
  • Staking: Thanks to Stake you can earn rewards, but in addition to more ATOM there are in stake, the greater the security of the network.
  • Governance: ATOM tokens can be used to vote proposals, the number of votes will be based on the amount of ATOM that is in Stake.

ATOM has three use cases: as a spam prevention mechanism, as stake tokens and as a voting mechanism in governance.


The Cosmos SDK “Software Development Kit” is a modular development framework, where developers can create side chains for an application.

Functions of the Cosmos SDK

These are some of the functions that allow you to apply the Cosmos SDK.

  • Modular: Thanks to its tools, you can create a custom blockchain for your needs.
  • Scalable: It allows you to run side chains based on the growth of users.
  • Interoperable: Make transactions between the different blockchain of the Cosmos network.
  • Secure: Access control against malicious applications.

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