Is Cosmos(Atom) the best investment yet?

I've always found the idea of Cosmos blockchain interesting given the obvious product it was selling: interoperability.

Blockchains by default are islands, meaning that they are largely isolated from so much, hence cannot effectively function with a lot, I believe what is to be blamed for this at the very fundamental level is “consensus”.

Consensus algorithms across blockchains vary, making it highly difficult for them to communicate with each other, effectively.

Of course, this varying consensus algorithms are important for security and other times really just a means of being unique in the broad market.

Cosmos is famous for its self-given title: internet of blockchains.

I can't say I know much about Cosmos, last time I wrote about it extensively, I sure as hell had a migraine trying to understand what I was reading and writing for my audience.

So this is usually where I say: this is not financial advice.

Blockchain Interoperability - How Important Is It?

Rather than focusing on if Cosmos is a good investment by pure speculations, let's look at what product it is selling and how important it is to crypto and the future in general.

First

What is interoperability?

Interoperability refers to the ability of different systems, devices, or networks to work together, exchange information, and use that information effectively. In the context of blockchain, interoperability means enabling communication and collaboration between different blockchain networks or systems, allowing them to share data and functionality seamlessly.

ChatGPT

Notice the first keywords: work together.

Now look at the crypto ecosystem. If you're unsure what to actually look at here, I'll tell you by asking a question: Are crypto communities friendly with each other or tribalistic?

When you look at bitcoin, it's obvious what comes from the group.

This is likewise common across the ecosystem, meaning that “working together” is not a largely shared vision of blockchain networks, it's really mostly about earning the most of the ecosystem to oneself as this simply means more revenue for oneself.

Is this scalable? Of course not. Fact is, it goes against the entire concept of crypto, this is centralization and creates room for flaws associated with such systems.

Building a future when blockchains are interoperable with each other is highly essential, just as it is essential that blockchains can communicate with off-chain databases or systems and here's where blockchain oracles come in - but that's an entirely different post.

What does this tell us?

Cosmos is selling an important product, one quite essential for the future of crypto. The Question is: are their tech functioning as intended and marketed?

Well, there are currently hundreds of projects built on Cosmos including Binance chain and more recently the popular Celestia blockchain.

Lately, the ecosystem has seemed to be pretty hyped because of airdrops and recent developments.

So, yeah, the tech works.

Does this make Atom a good investment?

While Cosmos does not charge a direct fee on projects leveraging it's tech, it relies on network effect primarily to grow its ecosystem value.

Think about it: more users by the definition of network effects means more value flow and more value flow means more generated fees for Cosmos validators which means there should be demand for Atom(the native token of Cosmos), therein benefiting all investors and at the same time, validators will earn a double incentive for being involved with Cosmos - investment value spike and increased fees.

The better Cosmos gets, the more development it attracts and that results in enormous network effects.

Posted Using InLeo Alpha