Cosmos (ATOM) surges 30% in past week on ‘Stargate’ launch
Cosmos, the high-speed interoperability platform, launched its much-awaited upgrade today. Here’s what it means.
Stargate is here
The much-awaited inter-blockchain communication (IBC) protocol launched on Cosmos today, as per an official tweet. Prices of ATOM, the project’s native token, bumped to over $24 in anticipation.
Congratulations Cosmos community on the successful and ambitious Stargate upgrade.
The era of interchain has begun ? https://t.co/BjNTvusnbw
— Erik Voorhees (@ErikVoorhees) February 18, 2021
“Stargate,” as it is dubbed, contains a set of upgrades and a toolkit for developers that complete the original roadmap laid out in the Cosmos Whitepaper. Following the launch, various Cosmos blockchains will be able to “connect” with each other using the first standardized protocol for inter-blockchain communication (IBC).
“It gives birth to the Internet of Blockchains and the start of a new paradigm in the cryptospace. The upgrade comes with many great features, with the main one being Inter-Blockchain communication, which enables blockchains to talk to each other,” explained the project in a post.
Such upgrades bring significant performance improvements to blockchains built with Cosmos SDK. These include bringing so-touted 100x efficiency to the IBC protocol, a faster full node syncing process, and over 20 times faster upgrades on the mainnet.
The Cosmos surge
As per a post, Cosmos SDK-based blockchains can incorporate the Inter-Blockchain Communication (IBC) Protocol to communicate with other compatible blockchains. The Cosmos Hub is the first blockchain to support IBC in production.
In addition, for blockchains that built on top of Tendermint Core, the full-node synchronization process reduces from 2 days to just 30 mins or less.
Furthermore, migration from one version to the next will take little to no time, as opposed to one hour or more before. Another beneficial feature is the new “Light clients,” or lightweight alternatives to a full node that allow a wide range of devices to safely and efficiently receive blockchain data for new network nodes and inter-blockchain communication.
Meanwhile, crypto traders and investors bid up the prices of ATOM in anticipation of the launch. The token traded under $5 two months ago, but today saw it reach the $26 level.
As per Coinbase data, the token has since lost over 2% after the Cosmos launch—a case of buying the news, sell the launch?