Cronos is the first blockchain network to allow decentralized finance, non-fungible tokens (NFTs), and the metaverse. It also interoperates with the ecosystems of both Ethereum and Cosmos.
Its goal is to rapidly expand the size of the Web3 user community by making it possible for developers to easily move apps and crypto assets from other chains while maintaining a low cost, high throughput, and speedy finalization time.
Ethermint is the engine that drives Cronos, enabling quick conversion of applications and smart contracts originating from Ethereum and EVM-compatible chains. Ethermint powers Cronos. The native token of Cronos’s parallel blockchain, the Crypto.org Chain, is CRO and is used as the basic currency for settlements on the Cronos network.
Cronos enables interoperability and bridging to the Crypto.org Chain, a completely decentralized, open-source, and efficient energy public chain with fast speed and cheap fees.
Cronos was built from the ground up with the IBC protocol. Thus it has always had this capability. This feature also makes decentralized interoperability with other IBC-enabled chains (like Cosmos Hub and Terra, for example) easier.
How Is Cronos (CRO) Different From Ethereum (ETH)?
There are several unique ways in which Ethereum and Cronos differ.
Interoperability: Ethereum is currently unable to communicate with other chains and has no plans for this to happen. On the other hand, Cronos was built from the ground up as an interoperable blockchain, with the IBC protocol serving as a foundation for this feature. This means that Cronos can communicate with other blockchains and easily merge into any blockchain network.
Security: Cronos has high security, thanks to its Proof-of-Work (PoW) consensus algorithm. It also supports a delegated Proof-of-Stake (dPOS) mechanism, which offers a higher level of security than Ethereum’s PoS model.
Ethereum has become incredibly vulnerable to external attacks in recent months, despite having the second-largest hash rate in the crypto space. Multiple data breaches and hacks have been reported for ETH, indicating that it is not as secure as it claims to be.
Cronos is shielded from external attacks due to its PoW consensus algorithm and other advantages. It is also a more innovative blockchain, with many new features that still need to be incorporated into Ethereum.
Emission: Ethereum miners receive Ether for mining blocks, which becomes their incentive to run the network. In turn, mining Ether allows miners to purchase mining equipment, which they can use to build out large-scale mining operations and maintain their network share.
The more Ether is mined, the harder it becomes to mine the next block and get a reward. This is because the block reward decreases as time passes, making it increasingly difficult to mine with the same amount of processing power.
Cronos, on the other hand, has CRO as its native token. Unlike Ether, CRO does not have an emission schedule determined in advance.
Things to Know Before You Purchase Cronos
Cronos is a smart contract crypto: Developers can build alternative cryptocurrencies and applications on top of the blockchain with the help of smart contracts, which are miniature pieces of code that reside on the blockchain. Crypto.com and Binance are examples of exchanges that have established their own smart contract networks. As a consequence of this, both of these exchanges have robust app ecosystems.
Big advertising and sponsorship move: The rise of CRO can be attributed partly to the increased interest of investors in Ethereum. This has led millions to trade ETH, leading to many retail traders becoming heavy CRO players.
Potential price increases: The introduction of CRO by Crypto.com and Binance has created demand in the market that needs to be met by supply. Whenever the Ethereum network issues new coins, they are sold to ICOs and other consumers who buy them in exchange.
Decent staking rewards: Staking CRO tokens will enable the user to earn a 5% annual staking reward for each CRO token. The staking rewards are optional, though. The user’s wallet needs to be opened and unlocked to receive them.
Cronos is an interoperable blockchain that allows users to move their applications and crypto assets from other chains while maintaining a low cost of transactions, high throughput, and a speedy finalization time.
The CRO token is the native token of the Crypto.org Chain and can be used as the basic currency for settlements on the network. It supports the Proof-of-Work (PoW) consensus algorithm and a delegated Proof-of-Stake (dPOS) mechanism.