Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Cosmos Network (ATOM) Rating= 543/1000
Technology (0 to 300) = 278
- Speed (0 to 50) = 45
Cosmos (ATOM) blockchain has an impressive transaction speed thanks to the Tendermint Core, which is a Byzantine Fault Tolerance (BFT) consensus engine. This feature can give a 1 second block time, with the theoretical capability to handle the transaction volume of 10,000 transactions per second for 250 byte transactions, which is quite remarkable.
- Cost (0 to 50) = 48
Cosmos ATOM is among the blockchain networks with the cheapest transaction fees. On the Cosmos Hub, every 1,000 transactions cost $0.27 calculated as below:
There are 27,420 transactions per block. Each block costs (in rewards to validators) 3.69 ATOMs. At USD $2 (updated October 2019) per ATOM, that’s $7.38 per block, or 27,420 transactions. That means each 1,000 transactions costs $7.38 ÷ 27,420 x 1,000 = USD $0.27. With a single Cosmos Hub today, every 1,000 transactions on Cosmos costs $0.27. Hence, it’s very affordable.
- Scalability (0 to 50) = 45
Cosmos employs the Tendermint Algorithm – the first adaption of Proof-of-Stake consensus derived from the Practical Byzantine Fault Tolerant (PBFT) algorithm. Tendermint, unlike Proof-of-Work scales horizontally hence could scale to an infinite number of transactions per second. Apart from being scalable by itself, Cosmos also helps blockchains scale in seemingly limitless ways thanks to its default features and capabilities. This is mainly achieved by creating mirrors of blockchains by making peg zones, in turn, multiplying the blockchain’s effective scalability.
- Environmental Impact (0 to 50) = 50
Cosmos anchor coin cannot be mined; therefore has a minimal environmental impact in terms of the hashing power consumed. It’s therefore quite environmentally friendly.
- Reliability (0 to 50) = 50
Cosmos is one of the first blockchain networks to solve the problem of scalability, usability, and sovereignty limitations of current blockchain infrastructure. Scalability has been the greatest issue among the world’s largest blockchains over the past few years, and none have been able to implement a solution that allows them to get anywhere near the scale they needed to accommodate mainstream adoption rates. When usability is considered, both developers and users are limited. With Cosmos, you’ll be able to send BTC to the Ethereum blockchain, or an ERC-20 standard digital asset on Ethereum to the Bitcoin blockchain, or an asset on the Tezos Chain to Ethereum, and so on and so forth. It’s therefore very reliable at this age of lack of blockchain interoperability.
- Decentralization (0 to 50) = 40
Cosmos is indeed decentralized attributed to a delegated proof of stake algorithm, which is organized in such a manner where stackers are split into two groups: validators and delegators. Delegators have the task of deciding which validators will get to take part in the consensus; validators are there to be a part of the consensus, validate transactions, and add new blocks to the chain. This ensures a high level of decentralization on the network.
Security (-250 to 0) = -105
- Reorg, 51% & Brute Force Attack (-100 to 0) = -50
A critical security vulnerability on the Cosmos network-enabled hackers to bypass certain penalties for misbehavior on the network. Normally, Cosmos validators that do misbehave either by voting haphazardly or signing off on false transactions are usually penalized by having their staked ATOM tokens slashed. This is made possible through a minimum wait period of 21 days that prevent validators from un-staking their ATOM tokens before the network can detect and screen their actions sufficiently. The Summer 2019 hack enabled hackers to bypass the full un-staking period and have their funds immediately become liquid essentially insta-unbounding.
- Potential for being banned ( -100 to 0) = -35
The only threat to the existence of the Cosmos network is that public blockchains and decentralized applications may decide not to integrate with each other. Additionally, Cosmos has the hidden capability of devaluing cryptocurrency assets due to interoperability; hence, most blockchains could theoretically boycott its use.
- Network Vulnerabilities (-50 to 0) = -20
A high severity security vulnerability was discovered in the Cosmos’ Tendermint consensus engine. It was discovered through their bug bounty program and a patch released by the team shortly after. The vulnerability resulted in a protocol violation resulting in a 5% stake slashing for one validator & its delegators.
Use Case (0 to 500) = 250
- Initial Main Use Case (0 to 100) = 40
Cosmos was launched to achieve interoperability between blockchains through the “Internet of Blockchains,” also referred to as Cosmos Hub. The Cosmos Hub is the first blockchain within the network and functions as the connecting medium between the various zones in the system. The zones consist of both private and public blockchains, which are all interconnected via the Inter-Blockchain Communication (IBC) protocol. It remains to be seen however if there is any demand for this service.
- Mainnet (0 to 200) = 200
The Cosmos mainnet launched March 14, 2019. The Cosmos ICO was held on April 6, 2019, raising $17.3 million worth of ETH, BTC, and USD. Approximately 75 percent of the available token supply was sold in the ICO, with 5 percent withheld for seed investors, and 10 percent each held by All in Bits and the Interchain Foundation. Besides its outstanding commencement stats, it is still too early to credit the capabilities of the mainnet.
- Additional Use Cases (0 to 100) = 0
Crypto casinos are a valid, legitimate and active use case: there are currently no Cosmos casinos or ATOM casinos.
- Additional Working Products (0 to 100) = 10
Cosmos developed the Cosmos SDK, which includes all of the same tools the team used to build out the Cosmos mainnet. These tools enable developers to build blockchain networks easily. Cosmos also plans to launch its own wallet to allow users to store ATOMs and make transactions on the Cosmos Hub.
Core Team, Partnerships, and Developers (0 to 200) = 120
- Core Team & Developers (0 to 100) = 60
Cosmos is supported by the Interchain Foundation (ICF), a Swiss non-profit foundation that has contracted the Tendermint team to develop the platform. Jae Kwon, the pioneer of BFT consensus, leads the team. Kwon partnered with Ethan Buchman and Zarko Milosevic, a BFT researcher from Cornell, to found Cosmos. The broader Tendermint team is indeed quite large, with over 30 members.
- Partnerships (0 to 100) = 60
There’s a whole host of projects already developing on top of Cosmos/Tendermint technology and have decided to become a part of the Cosmos Ecosystem. Some of the projects that have partnered with Cosmos include the Binance Chain, e-money, IOV, IRISnet, Kava, and Loom, among many others. There nearly 100 projects looking to build on top of the Cosmos Network and Tendermint technology indicating the network has a bright future.
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