Cosmos (ATOM) is up over 10% at press time. All signs point to an explosive year for the Layer-1 (or Layer-0, depending on how you look at it).  Covered: Cosmos TA The Cosmos SDK (Software Development Kit) Interblockchain Communication (IBC) Cosmos may be on its way to all-time highs as it has broken out of […] The post Is Cosmos Poised For a ‘Giga-Pump’? appeared first on CryptosRus.

Is Cosmos Poised For a ‘Giga-Pump’?

Cosmos (ATOM) is up over 10% at press time. All signs point to an explosive year for the Layer-1 (or Layer-0, depending on how you look at it). 

Covered:

  • Cosmos TA
  • The Cosmos SDK (Software Development Kit)
  • Interblockchain Communication (IBC)

Cosmos may be on its way to all-time highs as it has broken out of a descending wedge and proceeded to validate it as support. It looks like it is clear skies to $43, their previous ATH which will be the new resistance level.

credit: beincrypto

The Evolving Cosmos Narrative

Outside of the bullish TA, the narrative around Cosmos is growing. While many critics say it is an “extremely useful network with a useless token (ATOM)”, the market appears to be understanding the true value of Cosmos.

Dubbed “the internet of blockchains”, Cosmos and interoperability are set to be a major trend in 2022. The Interblockchain Communication Protocol (IBC) is a process Cosmos uses to connect all the independent blockchains called “zones” that connect to the Cosmos Hub. These zones operate autonomously and thus present a very strong interoperability play.

Moreover, these “zones” are application-specific chains, which presents opportunities that haven’t been explored yet like application-specific rollups. This is what Celestia is trying to do. Celestia also “provides a pluggable consensus layer, allowing developers to deploy their execution layers to run on top.” In essence, separating the execution and consensus layer.

The above image in the tweet is a great display of exactly what Cosmos and Celestia are trying to accomplish in the space. App-specific chains that have a plug-and-play consensus mechanism. these chains can be deployed very quickly. As TaschaLabs put it:

“Spinning up your own blockchain will be easier than deploying a WordPress site in not-so-distant future. Avalanche, Cosmos, Near, Ethereum etc will be the new AWS & some more if they play their cards right.”

The Cosmos SDK

The Cosmos SDK (Software Development Kit) is how these chains are created. It allows for a level of customization not seen in other chains. (Avalanche is trying to accomplish this too with their subnets as well as Polkadot with their parachains). As an example, the “smash-hit” of 2021, Terra (LUNA), was whipped up using the Cosmos SDK.

RECOMMENDED: What is Cosmos?

Cosmos is the like blockchain version of IoT (Internet of Things). The hard part for investors is the notion that Cosmos is doing everything behind the scenes, and thus, their token has suffered while others, like LUNA, have gone to the moon. Nevertheless, the narrative is evolving. The below tweet has been going viral as people copy/paste it in regards to the future Cosmos/Celestia offers.

IBC Transactions

As Cosmos pointed out on Twitter today, their chain currently connects 28 chains and does nearly 2.8M Interblockchain Communication (IBC) transactions per month. While that may not sound like a lot, consider how much further they are along than Polakdot in terms of traction with parachains.

As the concept of IBC evolves, and interoperability becomes critical, the market may begin to value ATOM more and as the “interchain asset” at the center of this interchain economy. Considering the recent moves of ATOM, and the bullish TA, that appears to be the case already.

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The post Is Cosmos Poised For a ‘Giga-Pump’? appeared first on CryptosRus.