Cosmos
Crypto Overview
Understanding Intended Utility
Cosmos (ATOM) is designed as an ecosystem of interconnected blockchains that can scale and interoperate with each other. The primary purpose is to serve as the 'Internet of Blockchains,' enabling different blockchain networks to communicate and transfer assets seamlessly. ATOM serves as the native token for governance, security through staking, and transaction fee payment within the Cosmos Hub.
Actual Utility Assessment
The Cosmos ecosystem has demonstrated substantial real-world adoption and utility. As of 2024, over 200 apps and services are built on Cosmos SDK, including major platforms like Binance Chain, Crypto.org, and Osmosis. The Inter-Blockchain Communication (IBC) protocol processes millions of transactions monthly, showing active usage of the intended interoperability features.
Token Distribution and Founder Analysis
The initial token distribution allocated 10% to the Cosmos Foundation, 10% to All In Bits Inc., 20% to early investors, and 60% to public participants through various funding rounds. Vesting periods were implemented for team and investor allocations. The development team, led by Ethan Buchman and Jae Kwon, has maintained consistent progress on the technical roadmap.
Technical Development
The project shows strong ongoing development activity with regular GitHub commits and protocol upgrades. The focus remains primarily on technical development rather than marketing, with continuous improvements to the Cosmos SDK, Tendermint consensus, and IBC protocol.
Revenue Model Analysis
The primary revenue mechanisms are transaction fees and staking rewards, which operate on a Proof-of-Stake consensus mechanism. Staking rewards are generated through new token issuance and transaction fees, representing a form of profit-sharing rather than interest-bearing debt.
Crypto Impact
To assign a comfort level investing in Cosmos from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Cosmos.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.