Not so long ago, the largest crypto project on the crypto market, Crypto.com, launched the Cronos network, which allows developers to transfer apps from Ethereum and blockchains compatible with Ethereum Virtual Machine (EVM), and also interacts with Cosmos SDK-based blockchains. Despite the recent launch, the growth in total value lock has skyrocketed. In this article, you will learn what Cronos is, what advantages it brings, and why it attracts thousands of developers and users.
What Is Cronos?
Cronos is a unique decentralized blockchain launched by the well-known financial company Crypto.com. The project's goal is the widespread adoption of cryptocurrencies and blockchain technology and the scaling of crypto-related projects. Cronos has several key features that allowed it to enter the top 30 cryptocurrencies by market capitalization in a short time. Cronos is built based on Cosmos SDK or the Ethermint network. The technologies used allow Cronos to be one of the few blockchains interacting with Ethereum and the Cosmos ecosystem.
Simply put, Cronos can provide Solidity developers with an easy way to migrate decentralized applications from Ethereum and EVM-compatible chains and benefit from low gas fees, instant transactions, and an environmentally sustainable runtime environment. At the same time, thanks to the IBC protocol, Cronos allows seamless interaction with other Cosmos SDK-based blockchains.
How Does It Work?
So as we have already understood, the Cronos architecture consists of several key components: Cosmos SDK and Tendermint consensus engine, Ethermint network, and IBC protocol. These terms might be challenging, , so let’s briefly look them up.
Cosmos: In a Nutshell
Cosmos is a project developing an interoperable ecosystem of parallel independent blockchains. The platform's task is to create a network of cryptocurrency projects united by open source development tools to optimize transactions between them. This emphasis on customizability and compatibility sets it apart from other projects. Instead of promoting your blockchain, the platform's purpose is an ecosystem of networks. Participants can exchange data and tokens without the participation of a central party. The founders called the system the “Internet of Blockchains”. The Cosmos ecosystem is built on the Cosmos SDK, Tendermint Protocol, and IBC Protocol.
Cosmos SDK
The development time of chains on Tendermint is several weeks, although previously, it took years. Creating a secure ABCI application from scratch remains a daunting task. To do this, the Cosmos SDK was developed — the basis for programmers. Writing software on it is much easier. The SDK solves two tasks:
- Creating a system for developing blockchains without the need to encode every byte of the program. Components for the SDK can be created by yourself. Ready-made modules in the blockchain are easy to use. To do this, you need to import them into the right application. With the network's development, the SDK's set of modules will expand, and the development of blockchain applications will be simplified.
- The boundaries between the components are limited. This solves the compatibility issue. The scope of malicious or unexpected attacks is also severely limited.
The modularity of the Cosmos SDK allows users to transfer almost any existing blockchain code to Tendermint. The Cosmos team moved the Ethereum Virtual Machine to the SDK module. The result is the Ethermint network. It works exactly the same as Ethereum but on Tendermint. Therefore, Solidity developers can utilize familiar tools, wallets, and smart contracts and benefit from Cosmos's scalability, efficiency, and flexibility.
Tendermint
The most important element of this multi-level design is the Tendermint BFT engine, a part of the network that allows developers to create blockchains without coding them from scratch. Tendermint BFT is an algorithm used by a network of computers running Cosmos software to secure the network, verify transactions, and commit blocks in the blockchain. It connects to applications via an Application Blockchain Interface (ABCI) protocol.
Tendermint operates based on a Delegated Proof of Stake consensus mechanism. This consensus mechanism is characterized by a high level of decentralization and security. Within DPoS, users can delegate their coins to validators. Validators are responsible for securing the network and adding new blocks to the blockchain. Delegates vote for a set of validators using native network tokens. However, the delegates can withdraw their vote anytime if the validator does not cope well with his duties. The main advantage of Tendermint is its high speed, scalability, and low fees. Thus, the Tendermint can process about 10,000 TPS, and in the future, it will be able to process up to 40,000 TPS.
IBC Protocol
And finally, the IBC protocol. Inter-Blockchain Communication is a protocol that allows various blockchains, including those outside the Cosmos ecosystem, to interact with each other, exchange data, including tokens, and connect to Cosmos.
Cronos: Proof of Authority
In addition, Cronos developers have implemented a Proof of Authority consensus mechanism on top of the basic Tendermint engine. Proof of Authority (PoA) is a consensus algorithm that considers the “merits” and the rating of validators. It is considered an effective mechanism for private blockchains. PoA is a kind of attempt to combine PoW and PoS. There is no mining, and consequently, there is no race for computing equipment and huge energy costs. In PoA, validators do not use the power of equipment or the number of coins to generate blocks but their own reputation.
Thus, a fixed number of validators selected by network participants or project developers are responsible for the network’s performance. This approach guarantees high transaction processing speed and good scalability. At the same time, validators are interested in ensuring that their work is honest and transparent. Otherwise, they will lose their status and reputation as a reliable network participant.
Validators in the Cronos network have two tokens: the native CRO token and the Cronos Staking Token. Validators receive the native CRO token as a reward for maintenance and network security support. The Cronos Staking Token has no value and is credited to validators by the network and displays their voting power.
What Is $CRO?
CRO is the native cryptocurrency of “Crypto.com Chain,” a blockchain developed by Crypto.com. The main point for the token to come alive was to pay for real-life things with your Crypto by converting it into real-time fiat currency (the U.S. dollar, Euro).
Crypto.com partners with many companies to embrace as many places as possible, allowing holders to make purchases in Starbucks, Adidas, and Airbnb.
Here are some other $CRO's use-cases:
- paying fees on the platform
- staking to qualify for various benefits
- lending
- borrowing
- airtime purchasing
- reducing trading fees
Conclusion
Cronos is a powerful blockchain network that has gathered a huge base of developers and users in a short time. The key advantages of Cronos are its flexibility, support for Cosmos and Ethereum ecosystems, scalability, cost-effectiveness, and security. In addition, many developers are migrating their applications from Ethereum to Cronos, as the Cronos team encourages developers and has a Grant program.
Among other things, the project team is well aware of the importance of the GameFi direction and provides a comprehensive modular suite of Cronos Play. The platform attracts millions of users and provides developers with support for many game platforms and languages, such as Unity Engine, Unreal Engine, and more.