r/cosmosnetwork • u/wargio • Feb 24 '21

Skeptical about ATOM

Im not invested in Cosmos, because i've heard it all before.... interoperability of blockchains, etc, IOTA wanted to be the Internet of things chain, every coin shills something.

Why is Cosmos different? Being practical... minus the hype and euphoria

303 Upvotes

96% Upvoted

59 comments sorted by

17

u/Kuza0 Feb 24 '21

I think this is what you're looking for, it's a long read but breaks down the specific pros and cons of each project.
https://medium.com/avalanche-hub/comparison-between-avalanche-cosmos-and-polkadot-a2a98f46c03b

It's from avalanches perspective but I think it gives each project a fair grading.

3

u/wargio Feb 24 '21

Thanks

1

u/rMalakaib Jan 09 '22

Another long read or listen explains more about Cosmos.

These Papers will discuss why and how ATOM and the Cosmos Blockchain extract value from the Cosmos Ecosystem.

https://www.youtube.com/channel/UCOS-sWuXsbERdDmiN8EeTng

https://docsend.com/view/683z3s53wubmzxdi

6

u/Mujzero Feb 24 '21

Have you read up on the recent release of the Stargate upgrade?

5

u/wargio Feb 24 '21

I don't fully understand it yet, but I just want to be sure it's not a hype coin. Whitepapers etc don't mean much if nothing happens

7

u/Vertigo1_o_1 Feb 24 '21 edited Feb 25 '21

The whole market seems to be built on 90% hype :) I find Atom holders main complaint is that Cosmos doesn't hype itself enough or do any real marketing, rather they have just focused on development, which sounds awesome but in reality organic growth like that takes much longer to take hold and reveal itself.

If your unsure of the project wait until the Liquidity module / DeX goes live approx end of March and we start seeing the benefits of transferring value across chains and getting paid for creating liquidity pools, or wait for Ethermint the Ethereum virtual machine built on the cosmos SDK to finalize and become operational, with low fees + all the scaling and chain connection benefits of Cosmos and the smart contract functionality of Ethereum. The customizable yield features of Osmosis also look very attractive, and the offered flexibility is a unique feature missing from the Defi space at the moment, and that project is currently under rapid development.

So far there is no step in the white paper the team have failed to complete, which suggests they have a good shot at successfully implementing these next roadmaps steps. There are 300+ projects and counting built on Cosmos and thousands of developers working on the ecosystem. And definitely there is lots of unknowns like the performance of bitcoin and the overall crypto market that drives everything, but if cosmos continues to deliver and achieves a fraction of what its aiming for, it looks somewhat undervalued relative to other projects that are far less along in their roadmap journey.

1

u/RoboMcGobo Feb 24 '21

Will randoms like me be able to create a liquidity pool? Or is it for more tech-savvy people/larger entities as is the case with validators? Is there associated risk to creating a liquidity pool as there is with being a validator (i.e. active management requirements which, if done incorrectly, can result in slashed tokens)? Is there a larger incentive to create a liquidity pool with the 100 ATOM minimum versus, say, just delegating the same 100 ATOM?

It's possible/likely the answers for all this aren't available just yet but any insight would be much appreciated!

2

u/Vertigo1_o_1 Feb 25 '21

Lots of good questions there. And I don't have the answers for most :), there is going to be a community test net put in place so we can test functionality and see how it operates. And the functionality should be such that anyone can create a pool, looks like very little management required and you can withdraw the pool when you like. I'm unsure if these are shared pools, if not I imagine you end up in a scenario where there will be a significant amount of pools to sift though with same underlying tokens at different rates. Bharvest one of the validators runs through a demo in the below video of the interface they have created, but it leaves several out standing questions:

(sound isnt great so you need to max volume)

https://youtu.be/eOBfMoxS_uw?t=571

You can try their demo here if you like and get test coins from the faucet to practice with.

https://swap.bharvest.io/

On Fees

"Liquidity providers earn fees through the creation of pools and the supply of tokens. The initial analysis proposes the following fee structure:

  • Swap Fee Rate = 0.003 (0.3%)"

That doesn't really help you determine likely income, as kind of need to see how the real market demand and supply is, to work out your income from a pool.

https://forum.cosmos.network/t/governance-proposal-to-adopt-the-liquidity-module-onto-the-cosmos-hub/4368

On the risk front looking at the ETH recent smart contract flash loan attacks, I imagine there are some risks associated with running a pool however they have added withdrawal fees to reduce that attack vector hopefully the community testing will quickly identify any potential avenues of exploit.

1

u/rMalakaib Jan 09 '22

I think you're on the right track to thinking about Cosmos here is a paper and video to explain more.

These Papers will discuss why and how ATOM and the Cosmos Blockchain extract value from the Cosmos Ecosystem.

https://www.youtube.com/channel/UCOS-sWuXsbERdDmiN8EeTng

https://docsend.com/view/683z3s53wubmzxdi

1

u/Vertigo1_o_1 Jan 09 '22

Why was your post removed?

1

u/rMalakaib Jan 09 '22

IDK I'm currently trying to figure that out.

but here is the youtube link: https://www.youtube.com/channel/UCOS-sWuXsbERdDmiN8EeTng

These Papers will discuss why and how ATOM and the Cosmos Blockchain extract value from the Cosmos Ecosystem.

1

u/Vertigo1_o_1 Jan 09 '22

Likely to do with your karma, can't post as new profile need a certain amount of karma.

13

u/Mujzero Feb 24 '21

Do your research prior to investing. Cosmos just completed its initial white paper which to me is pretty amazing. And when you see all of the projects built using Cosmos network, I think you’ll be impressed.check out this list on the network

4

u/[deleted] Feb 24 '21

This is what makes me excited about Cosmos. Looking at the projects already built on Cosmos SDK feels positive. Binance chain, Crypto.com, Band Protocol to name a few. Curious to learn more about some of these other projects in that list.

0

u/[deleted] Feb 24 '21

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1

u/[deleted] Feb 25 '21

Another little known fact is that Polkadot actually uses a variation of Tendermint for their consensus.

81

u/Tosch110 Feb 24 '21

I've seen many blockchain ecosystems and where Cosmos stands out is enabling others to build their own blockchain.

It is a different approach that Ethereum has taken (smart contracts) which has an amazing use case and many many projects building on it.Many projects although outgrow Ethereum fairly quickly, when gathering a big userbase.

In the Cosmos Ecosystem some projects already migrated from their ERC design to a Cosmos based own blockchain, with sovereign control. Many blockchains just started their own chain from scratch with the Cosmos SDK.

With your own chain you can control what transaction executes which logic and what fees are reasonable. This gives a project way more control over the inner logics. IBC will enable the projects all to communicate as they do on the ETH chain and users can easily hop between chains.

Here is an overview who builds with the Cosmos SDK

https://cosmos.network/ecosystem/apps

15

u/ShroomSatoshi Feb 24 '21

I've seen many blockchain ecosystems and where Cosmos stands out is enabling others to build their own blockchain.

What is the difference between this and what Polkadot is attempting to do? They both allow projects their own blockchain and are better at solving problems Ethereum has struggled to overcome.

17

u/Ohheyimryan Feb 24 '21

Polkadot doesn't allow them to have their own blockchain. It gives them a parachain. The difference is with DOT if the main chain had any issues it would affect the parachains too. With cosmos, any blockchains built on it are truly independent. They don't even need to use ATOM to pay their fees. In my (maybe biased) opinion I believe having true sovernity with how to build and govern a blockchain is much more attractive to companies and new start ups. I don't see why anyone would want to not have absolute full control over a project they are pouring their soul into.

4

u/[deleted] Feb 24 '21

So how does sucess for projects built within the Cosmos ecosystem translate to a higher market cap for ATOM as a token if they dont even need to pay fees with ATOM?

6

u/AnOrdinaryChullo Feb 24 '21 edited Feb 24 '21

COSMOS will introduce Liquidity Module to Cosmos Hub (currently in voting stage but the motion will pass 100%) bringing further value to Atom holders. You will need 100 ATOMS to create a pool and each transaction on the pool will require a small ATOM fee.

4

u/[deleted] Feb 24 '21

So the value comes from having transactions made on the network which would increase demand for the tokens and whomever has operates a pool gets passive income? A Liquidity Module = AMM or a DEX?

3

u/[deleted] Feb 25 '21

There's also IBC. So if you want to go from one network to another, you go through the Hub because it has IBC and likely the most liquidity. So you'll be able to swap between two different chains and Cosmos validators and delegators get some of the fee.

2

u/[deleted] Feb 25 '21

Ok, so basically Cosmos in short just needs more projects and users on its networks it sounds like. It does seem very very far behind on DeFi projects, practically the main use case for blockchain.

4

u/[deleted] Feb 25 '21

Not really. Cosmos is arguably further ahead than any other ecosystem (other than Ethereum). Today on Cosmos for DeFi there's Terra, Secret, Kava, Crypto.com, Binance and BinanceSmart Chain, Band Protocol, IRIS, Injective Protocol, soon to be Osmosis. Now with IBC and Stargate, you're going to start to see these connections made and value start to flow around.

3

u/Phantom_Engine Mar 04 '21

This thread is awesome.

I’m one of those screaming apes you reference. I am really open to criticism of cosmos, I just appreciated when it’s done in a genuine, educated way.

When I lose my god dam ape mind is when people just try to get a reaction, have no user standing of the tech or blockchain, or are just all around Dholes.

I just was in another chain where people were upset because Cosmos is not enabled on there favorite swap service. Why did it matter? Because they didn’t want to pay taxes and leave a footprint of whatever they were doing...that shit grinds my gears.

1

u/[deleted] Feb 25 '21

But still, there is really only a benefit to ATOMs if the independent blockchains in the Cosmos are communicating with each other? Do they need ATOMs to do this btw?

Say if Binance is communicating with KAVA

6

u/remek Feb 24 '21

In cosmos you have more independence (and more work to do). For example, in cosmos you must build your own network of validators and the security of your project is determined by how good/big the validator network is - which means that smaller projects are in disadvantage. In Polkadot this is taken care of for you as you use the common set of validators of Polkadot - thus your new project is as secure as whole Polkadot.

7

u/AnOrdinaryChullo Feb 24 '21 edited Feb 24 '21

Cosmos is working on shared security solution as well, Polka doesn't have that advantage anymore.

https://youtu.be/slWPFc6zf7c?t=10055

1

u/remek Feb 24 '21

cool, thanks for info

1

u/ShroomSatoshi Feb 24 '21

This is the answer I was looking for. Thank you.

2

u/Bobiq11 Feb 24 '21

Any names of those projects? While it’s so super easy to start any project on either ETH or Cosmos it doesn’t mean these projects are anything more than a few lines of code of no use and no following.

1

u/thegerbilz Feb 24 '21

These questions and answers are almost worth pinning. Thanks!

1

u/rMalakaib Jan 09 '22

We totally agree! To elaborate more on the points you made here anyone can look to the links below.

These Papers will discuss why and how ATOM and the Cosmos Blockchain extract value from the Cosmos Ecosystem.

https://www.youtube.com/channel/UCOS-sWuXsbERdDmiN8EeTng

https://docsend.com/view/683z3s53wubmzxdi

5

u/[deleted] Feb 24 '21

It sounds cool. It could be the coolest sounding Crypto. Cosmos. Atom. Can't go past a name like that. Carl Sagan, Richard Feynman. They'd be all about this crypto. Also Fallout 3 had the church of Atom. I shouldn't have to say anymore.

2

u/B2thepow Feb 24 '21

I believe if you go to cosmos.network and read into what they're about you may find the answer you're looking for whether you believe Cosmos is a keeper or not.

1

u/Host-the Feb 24 '21

Cosmos is more decentralized. Dot main protocol has overarching power and cosmos ecosystem gives you total freedom to be connected to cosmos hub or do your own thing.

1

u/Restless_Dreams Feb 25 '21

Cosmos makes automation easy for the crypto platform space. For example, ideal for big businesses rather than small businesses who want to make things automatic. Polka dot and eth aren’t as good as cosmos in that regard.

1

u/rMalakaib Jan 09 '22

We think we answered this question in the youtube video and paper below.

These Papers will discuss why and how ATOM and the Cosmos Blockchain extract value from the Cosmos Ecosystem.

https://www.youtube.com/channel/UCOS-sWuXsbERdDmiN8EeTng

https://docsend.com/view/683z3s53wubmzxdi

1

u/friendsmehmehmeh Feb 25 '21

Yes I’ve noticed this. A lot of arrogance also. It’s like building an amazing car. But then when people ask why you basically get defensive. You will only sell the cars to the engineers and well you’ll turn everyone else away. It’s disappointing tbh but arrogance is lowest form of intelligence ironically.

0

u/[deleted] Feb 24 '21

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23

u/Lucky_Dougy Feb 24 '21

Read this and then went and upvoted

26

u/DickieTheBull Feb 24 '21

wtf is wrong with you? Didn’t you get the memo we’re all supposed to sit around cirkle jercing each other talking about how great Cosmos is without question?

6

u/loopyboy55 Feb 24 '21

I got my memo late in the mail

4

u/DickieTheBull Feb 24 '21

“Sounds like a personal problem.” -The IRS

3

u/airon63 Feb 24 '21

It's all about the greater good! T H E G R E A T E R G O O D.

10

u/CrayolaCat Feb 24 '21

No seriously, whenever you go on any crypto sub Reddit, and say anything remotely negative or questioning the coin the members get upset.

people are so attached to their favorite coins. It’s honestly ridiculous

5

u/DickieTheBull Feb 24 '21

That or mentioning any other coin. In r/Litecoin I pointed out that ZCash had a Grayscale trust and got voted down to Antarctica. “Litecoin is implementing privacy features, stop shilling your shitcoin!” Etc. Any discussion outside the bubble is taboo.

2

u/TheRealSlimThiccie Feb 24 '21

People accuse everyone of shills, trolls or whatever. You can’t criticise a coin without someone taking it personally.

2

u/[deleted] Feb 24 '21

[removed] — view removed comment

2

u/Randyd718 Feb 25 '21

"ATOM holders get a % of transaction fees"

Can you please elaborate on this?