Everstake - Learning Center
What is Cosmos?
Cosmos is a scalable ecosystem of connected blockchains, which supports creation of its own additional connected blockchains, as well as connecting the already existing blockchains using the special inter-blockchain communication protocol. Cosmos allows creating public blockchains, in which the consensus would be provided by decentralized community, so that the transaction verification doesn’t require computing powers from those who uses such a blockchain.
Cosmos connects different blockchains by the use of IBC (Inter-Blockchain Communication), a TCP/IP-like protocol for messaging between independent blockchains. The connected blockchains may be created within the Cosmos ecosystem, or should support decentralized computing (smart contracts) and cryptocurrency tokens. After a smart contract and the Cosmos’ ATOM token are implemented in the blockchain in question, it can operate within the Cosmos network.
What is Cosmos Delegation?
Delegation is the process of taking part in the Cosmos consensus algorithm in return for transaction verification rewards. Users delegate their ATOM tokens to the validators of their choice. These tokens form the validators’ Voting Power, by which they are then selected for rewarding verification process.
Physically, the tokens are remaining on the delegators’ wallets and can be accessed again once un-delegated. The un-delegation process is also easy to perform and almost takes only a few moments.
What are Cosmos Validators?
The Cosmos Validators are nodes that verify and confirm transactions, publish new blocks and provide all calculations for the dApps hosted in the Cosmos network. In return, the validators receive the rewards, which are then shared with users who vote for them.
Only 125 validators with the largest Voting Power are allowed to take part in the validation process at a time.
How profitable is Cosmos Delegation?
The medium Cosmos delegation yield is currently at around 13%. The actual rewards vary according to the number of transactions, number of validators, and the fees that validators withhold for node maintenance, power and running. Everstake takes only 5% fee, which is already accounted above. The Everstake Cosmos staking calculator will help you get more exact numbers for your delegation.
How to find a good Cosmos Validator?
A good Cosmos validator will have 100% uptime and 0% missed blocks. These numbers can only be achieved by highly professional teams of DevOps and engineers, who run a powerful and stable servers, with stable and fast connection to Internet, that host well-maintained and up-to-date software.
It would be a great advantage if a validator takes part in the Cosmos community, is acquainted with all cons and pros of the platform and puts the efforts into the further development of the platform and community. A website with clear contacts information and transparent team overview is also a plus.
Why Delegate Cosmos to Everstake?
The Everstake’s Cosmos Validator node is kept by Attic Lab, a large team of world-class blockchain enthusiasts with several decades of combined experience. The node is hosted at an enterprise-level data center which guarantees 100% uptime for the server, connection and power.
The Everstake team is a big contributor to the Cosmos infrastructure and community. Just as for other platforms we work with, we have built a set of tools and utilities for platform users and developers, and we are highly confident with the whole network.
We have been on the market for quite a while and have a proven track record. All our activities, operations and fees are publicly open, which ensures maximum transparency.