Due to the growing demand from users and decentralized applications, the Ethereum ecosystem has not been able to handle the massive influx of users in recent years. During 2016 and 2017, the cryptocurrency world experienced unprecedented demand, creating congestion on the entire Ethereum blockchain. Many first-layer blockchain infrastructures have arrived as reinforcements to overcome this congestion and these excessively high user fees. This is the case of the leader of centralized exchanges Binance, which has been able to support Ethereum thanks to the creation of the Binance Smart Chain which has recently become the BNB Chain. Many other infrastructure blockchains were born, such as Solana, Avalanche, Terra and many others. All these blockchains want to develop Web3, decentralized applications, NFTs or for example the metaverse. In this article, we will discover the Cronos blockchain together.
The Cronos blockchain represents the infrastructure of Crypto.com, one of the most well-known centralized exchanges in the world of cryptocurrencies. First of all in this article, we will discover how this environment works and then present the challenges and objectives of this blockchain.
It was official in September 2021, the exchange Crypto.com announces the launch of its own first-layer blockchain solution Cronos.
Launched in October 2021, the Cronos blockchain aims to develop the world of cryptocurrencies, initially through smart contracts. It has support for EVM (Ethereum VirtualMachine) that allows connection with the Ethereum blockchain to ensure interoperability. These connections make it possible to take into account decentralized applications within the blockchain. Created for the entire ecosystem, it aims to develop all new worlds such as decentralized finance, NFTs, metaverse or GameFi.
The company highlighted the rebranding made in February 2022. This change highlights the decentralization of the CRO cryptocurrency as well as a growth of the entire ecosystem.
Cronos is the first blockchain network compatible with Ethereum and built on the Cosmos blockchain. It is a public, permissionless, first-layer blockchain with high throughput and low network runtime fees.
What does Cronos offer?
- An interoperable blockchain
As previously explained, Cronos is an interoperable blockchain with the Ethereum EVM. This allows developers to increase their use cases. In addition, thanks to the IBC tool (Inter Blockchain Communications), the environment can connect with all IBC compatible blockchains.
The CRO EVM Fund was created to support innovative projects up to $1 million.
The environment’s user base is constantly growing, which makes it more attractive to use for decentralized applications.
The consensus mechanism of the Cronos blockchain works thanks to the protocol of the Proof-of-Authority. It is a reputation-based consensus that it emphasizes identity, which means that validators do not use their tokens, but rather their reputation within the network to be selected. In this way, blockchains using this method secure their environment by arbitrarily selected validator nodes as trusted entities. This mechanism was introduced by Gavin Wood in 2017, the creator of the Polkadot blockchain.
Streamlined and scalable, the PoA ensures the security of the Cronos blockchain with a range of validators managed by many different stakeholders. Cronos uses Cosmos SDK to work, as well as the main consensus engine “Tendermint”. This further allows for protocol scalability, gas price optimization and customization, but not only, it also improves the prototype on chain :
EVM: Ethereum Virtual Machine
It is the widely adopted standard for smart contracts. Thanks to it, developers can build in the same way as on Ethereum. In addition, they benefit from the same work environment, as well as the same tools and applications.
It is a modular blockchain development framework where each component is interdependent. Each developer is free to create their own modules for their needs and applications or to use defined modules. Several features are available for environments that wish to create using the Cosmos workspace:
- Bank: Ensures the transfer of tokens and supports requests for the supply of all assets;
- Distribution: Distribution of staking fees and rewards for validators and delegators;
- Governance: Proposal and vote on chain ;
- Currency: Creation of a new token which can be staked ;
- Slashing: This is a dishonest validator sanction mechanism;
- Staking : Proof-of-stake layer for blockchains.
Tendermint consensus engine
Unlike other blockchains, on Cosmos developers can use Tendermint to use BFT state (Byzantine Fault Tolerance ) applications, regardless of the language and environment used.
Many use cases
Increasingly adopted, increasingly used, the Cronos environment of crypto.com continues to develop in order to provide a robust solution for the community.
Today, the category with the largest number of applications hosted on Cronos remains NFTs. Many projects revolve around the Cronos ecosystem with: Crosmonauts, Cronos Chimp Club, Crocos NFT. These are limited NFT collections created on the Cronos blockchain. Or even projects like Agora which are platforms and marketplaces for selling, exchanging or buying NFTs.
- Decentralized exchanges
In a second measure, the decentralized exchanges represent 21 different projects hosted on the Cronos environment. This category includes projects like VVS Finance or KyberSwap for example.
- Decentralized finance
Overall, in third position, decentralized finance is well represented with various applications. First of all the wallets or the bridgethat enable connection and interoperability. Secondly, many launch padsare available as well as performance applications (farming, yield , lending,…).
The Cronos blockchain supports all the blockchains and infrastructures available within the entire ecosystem. It provides flexibility thanks to its compatibility with the EVM as well as its many bridgewhich allow users and developers to be able to use this environment in the same way as any other. It ensures its security through the PoA and determines its validators. Built using Cosmos blockchain tools, it features high throughput, low transaction fees, and plenty of use cases.
Several decentralized applications, around NFTs, finance and trading platforms are hosted on the blockchain. Many other use cases like metaverses are part of the ecosystem.
A new player and a new robust tool for the further development of the entire cryptocurrency ecosystem.
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Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was obvious. The blockchain is surely the universal tool of tomorrow.