We’re living in a world where every conversation consists of the words Blockchain, Crypto, DeFi, NFTs, etc. But the biggest paradigm shift in the recent world of technology has been brought by Blockchain technology. It is viewed as the future of technology due to its decentralized and distributed network infrastructure. Blockchain is the technology over which Crypto, DeFi, and NFTs are created.
The use cases for Blockchain extend from P2P transactions to healthcare to media.
Recently the CEO of J.P.Morgan expressed in the letter to the shareholders that, “Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not,”
One of the biggest and most used Blockchain is the Ethereum Blockchain. It ranks second just after Bitcoin with respect to market capitalization. The Ethereum Blockchain was built for the development and deployment of decentralized applications on its platform. The Decentralized applications are built on the execution of smart contracts (agreements that are executed automatically).
As Ethereum has become the go-to platform for decentralized application (dApps), the transactions and the number of users on the Ethereum Blockchain have increased drastically.
Even with its immense popularity, use cases, decentralized applications (dApps), etc., there are a number of issues faced by the Ethereum Blockchain in the market.
They are as follows :
As the number of applications on the Ethereum network are on the move upwards, the Ethereum Blockchain has been suffering from scalability issues. Scalability refers to the capability of handling the influx of several transactions at a time. The scalability issue has become an obstacle for app developers in creating apps on the platform.
90% of the applications hosted on the Ethereum Blockchain have been found to be inoperable, costly, and slow, as per the survey of decentralized apps.
Developers are not able to cope with the high gas fees and transaction fees which results in projects being abandoned or a failure.
DApps on the Ethereum network require ETH tokens to operate, since there are 1000s of dApp users they all will have to buy ETH and this process can be cumbersome and expensive for the users.
The major hindrance caused to the Ethereum network is due to the increase in the transactions carried out and not due to the price of ETH.
With every transaction that is processed the user has to spend a little ETH i.e., gas fees together with the transaction. The more complicated and bigger the transaction the more ETH the user has to spend. Therefore only the users transacting over the Ethereum network pay for the upkeep of the network in lieu of everyone paying for it proportionately.
The transaction capacity of the Ethereum network does not correspond well with its widespread applications i.e, it is too slow causing major scalability issues for its users.
To combat and provide a solution for the Ethereum Blockchain issues of scalability, high gas fees, etc., many other platforms have come up for developers to create their applications on like EOS, TRON, etc.
One such Blockchain is Cronos.
What is Cronos?
Cronos is the first-ever Blockchain to provide interoperability between Blockchains. Built using the Cosmos software development kit, it can interoperate with both Ethereum and Cosmos ecosystems, which allows it to support DeFi, Metaverse, and NFTs making it an inter-blockchain protocol.
It is Crypto.com Blochchain’s sidechain. Sidechains are separate blockchains that act as extensions to the main Blockchain or parent blockchain. Sidechains aid in improving the native blockchains via experimentations, competition, and innovation done on them.
The Cronos sidechain is structured in a manner that it offers absolute flexibility and scalability. It is promoted as a Layer 2 solution that will facilitate a much smoother and increased number of transaction processing.
Cronos allows the portability of dApps from the Ethereum Blockchain to the Cronos Blockchain. The option to port to the Cronos network is tempting as the network provides faster transaction processing and comparatively less fees for users and developers.
Cronos Blockchain has its Blockchain native cryptocurrency and provides a platform for decentralized applications.
GOAL OF CRONOS – Run Ethereum Virtual Machine (EVM) Application
The portability of existing apps or smart contracts without any alterations or improvisations made from the Ethereum Network to the Cronos Network is the most unique feature of the Cronos Blockchain.
Cronos also facilitates porting dApps created on any EVM-supported chain over the Cronos network. This makes sure that the existing investments made in the applications are not completely wasted while porting the application and the new blockchain allows the users to use any app previously run on Ethereum without any cost.
Ethereum Virtual Machine (EVM) is a platform where developers can create or develop decentralized applications on Ethereum. It is a software development platform or a virtual machine where all the Ethereum contracts and smart contracts reside.
Role of Crypto.com in Developing Cronos
Crypto.com is a cryptocurrency exchange based in Singapore created by Kris Marszalek in 2016 and initially was known as ‘Monaco’.
Crypto.com currently has 10 million users and 3000 employees. It provides activities like staking, crypto-trading, NFTs, and more on its platform.
The native token of Crypto.com is CRO. Dividends are distributed to the holders of CRO.
The launch of Cronos has acted as a booster for bringing in changes to its structure by shifting it from a cryptocurrency infrastructure provider to an all-inclusive ecosystem for digital assets, dApps, and other services.
With the introduction of the Cronos Blockchain, Crypto.com has moved forward and equipped itself to create more advanced and new products to make cryptocurrency more accessible to businesses and consumers.
A new public Blockchain has been announced i.e., the Crypto.com chain which will aid in creating a variety of decentralized financial services.
Owing to the Cronos sidechain, value is added due to the programmability offered by the sidechain that can execute trust codes on top of existing blockchains. This permits inter-chain or cross-chain applications and enables interoperability throughout different blockchains.
Crypto.com has limitations and is restricted due to the protocols and governance mechanisms set in place by its native Blockchain.
Crypto.com is now competing with layer-2 solutions like Solana and Polygon with the development and introduction of its sidechain Cronos.
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