Cosmos (ATOM)

Cosmos aims to create an 'Internet of Blockchains' through a network that allows disparate distributed ledgers to interoperate with one another. Cosmos is built on separate blockchains referred to as zones, which use the Tendermint Core BFT consensus mechanism. Cosmos aims to create an ecosystem to make blockchains easier to use through developer SDKs and interblockchain communication. The Cosmos chain will serve as the hub through which other chains and tokens can interoperate with one another. ATOM is the native asset of Cosmos and is used for on-chain governance. ATOMs can be staked by zone validators to join hubs, with their locked tokens functioning as a bonding mechanism. Cosmos Hub requires ATOM to be used for transaction fees. ATOM can be subdivided into 1 million micro ATOM (uATOM).

Cosmos' Interblockchain Communication (IBC) works by bonding ATOM, then relaying and validating proof of the bonding to another chain, before a corresponding amount is released on the second chain. This allows projects to issue tokens representing assets on other chains. IBC is compatible with fast-finality chains. Chains that do not have fast finality can be used in IBC with 'Peg Zones' that impose a 'finality threshold'.