Cena Cosmos (ATOM)

ATOM's current value is severely undervalued, and the price may be raised to $20 in the short term.

$Atom, also known as "阿童木幣" in Chinese, is the network token of the Cosmos Hub. Cosmos Hub represents second-generation blockchain technology, while Bitcoin represents the first generation. The second-generation blockchain technology commonly employs a Proof of Stake (POS) consensus mechanism, which is faster and more scalable compared to the Proof of Work (POW) mechanism. However, the POS consensus mechanism sacrifices some degree of decentralization.

After the upgrade to Ethereum 2.0, changing from POW to POS consensus mechanism was primarily aimed at increasing the mainnet's speed and facilitating the launch of Layer 2 solutions.

As a result, Cosmos Hub boasts excellent scalability, making it a representative technology alongside Polkadot in the second-generation blockchain space.

Aside from adopting the POS consensus mechanism, Cosmos Hub's primary focus is solving the issue of cross-chain asset transfers. This unique technology has made Cosmos Hub a leader in cross-chain asset transfers and constitutes its core value proposition. Without this core value, relying solely on the POS consensus mechanism, Cosmos Hub would struggle to compete with Ethereum 2.0.

In the era of Ethereum 1.0, cross-chain asset transfers were a challenging problem. DeFi on the Ethereum chain could only trade tokens within the ETH ecosystem, unable to provide lending for BTC. Cosmos Hub's cross-chain asset transfer technology allows DeFi to offer lending for tokens from multiple blockchains, enabling many new wallets to accept tokens beyond ETH, such as BTC.

Cosmos Hub primarily adopts a light client design, where two different blockchains involved in cross-chain asset transfers each set up a light node in Cosmos for verification and communication during cross-chain transactions. For example, Blockchain A sets up a light node containing Blockchain B's data, and Blockchain B sets up a light node containing Blockchain A's data. During cross-chain transactions, communication uses light nodes, while verification still utilizes their respective nodes.

The advantage of this technology is that using Cosmos for cross-chain operations is cost-effective. However, the drawback is that there's minimal interaction between Blockchains A and B and Cosmos. If either Blockchain A or B experiences growth and a rise in token prices, Cosmos Hub's token remains unaffected. This makes Cosmos a viable choice for public chains like ETH and BTC, which are competitors.

The development of the application ecosystem in Cosmos is anticipated to be robust - Cosmos is poised for success in terms of applications. Certainly, this growth will contribute to an overall increase in costs. However, Cosmos faces a challenge: while the prices of its token ATOM is expected to rise, it is not substantially due to Cosmos itself.

Airdrops in the Cosmos Ecosystem

Token acquisition within the Cosmos ecosystem is another goldmine following the minting of BRC-20 tokens. Similar to the issuance method of BRC-20 tokens, many projects within the Cosmos ecosystem in 2024 have adopted a model where tokens are 100% owned by the community (including developers, contributors, and regular users). Unlike BRC-20 and ARC-20, this approach doesn't require minting and instead uses staking. Airdrop tokens are obtained based on the amount of tokens staked.

Aside from benefiting the Cosmos token ATOM, airdrops in the Cosmos ecosystem also benefit Celestia's token Tia. Click "Tia price" to check Celestia's 2024 price expectations and analysis. If you want to understand how to stake Tia to receive airdrops from projects within the Cosmos ecosystem, you can refer to the "2024 Cosmos Ecosystem Airdrop Guide".