Cronos and Cosmos are two crypto blockchains often confused for their similar names. In reality, they vary significantly, and you might be wondering which crypto is a better investment. Experts often compare CRO vs ATOM, and this guide will cover the basics regarding both currencies.
What Is CRO?
CRO is a token powering the Cronos blockchain launched by the famous Crypto.com platform — a crypto exchange that also offers margin and derivatives trading and other financial services. It supports many currencies, although experienced investors might prefer an anonymous HNT to BTC swapping platform.
Cronos blockchain is a layer-1 solution that’s compatible with the Ethereum network. CRO serves for paying gas fees when performing transfers on the network, and it can also serve for value transfers.
Cronos uses the proof-of-stake consensus mechanism. That means you can’t mine CRO tokens, but you can stake them to earn rewards. Staking involves placing coins in special wallets that serve to validate transactions on the network.
The PoS mechanism is an integral part of the network’s security. After adding new blocks to the network, validators get rewarded, and delegators receive their share back. The reward rate depends on the CRO amount you stake.
DeFi and NFT
Decentralized finance apps are an important part of the Cronos ecosystem. Considering that Ethermint powers Cronos, smart contracts from EVM and similar blockchains are easy to port to Cronos. Developers who have knowledge of building Ethereum dApps shouldn’t find it hard to port their apps to this blockchain.
Non-fungible tokens are also available on the Cosmos blockchains. You can acquire, sell, and trade NFTs, which have become a trend in the crypto industry.
Partnerships and Services
Cronos Labs works on partnering with important names in the crypto industry. Among the latest additions, Cronos partnered with Protocol Labs. It’s the network behind the decentralized storage project Filecoin.
Many projects are supported by Cronos Labs. Some examples include the Tectonic money market, Minted digital bazaar, and Veno Finance.
What Is ATOM?
ATOM is the native token of the Cosmos blockchain. You often find this network referred to as the “Internet of blockchains.” That’s because its priority is to maximize interoperability and communication between different blockchains.
Cosmos allows the creation of independent blockchains called a zone. Cosmos Hub is the central point, and each zone is connected to it.
Scalability and Security
Cosmos uses the proof-of-stake consensus mechanism to maintain a high level of security. ATOM owners can stake coins to trusted validators. After confirming transactions and adding new blocks, they receive rewards. The network applies vertical and horizontal solutions, such as protocol changes, to ensure optimal scalability and fairly fast transactions.
Developers can use the Cosmos software development kit (SDK) to build apps on this platform. The framework is open-source and features a modular design. That means you select the components when making your blockchain. Cosmos SDK has excellent flexibility, and that secures versatility and application for different industries.
Cosmos is a decentralized blockchain, making it suitable for DeFi apps. You can find many decentralized exchanges in the ecosystem, and transactions on this network occur without the involvement of a central authority. That secures privacy for users, which indicates that Cosmos remains true to the basic crypto rules that promise user anonymity.
CRO vs ATOM Comparing
Cronos and Cosmos don’t only have similar names, but they are decentralized blockchains with various apps in the ecosystem. Both projects have been around for years, and they are likely to keep a high spot in the crypto rankings in the future. Here’s a brief overview of how the two tokens compare!
CRO vs ATOM: What to Invest In?
At first glance, it might seem that CRO is a more tempting option because Crypto.com is behind this project. That doesn’t mean ATOM doesn’t have what to offer. Its intriguing concept and focus on interoperability can make it even more successful in the future.
Ultimately, we suggest analyzing the current technical indicators and checking the parameters that you find important. Both ATOM and CRO can fit well into your investment portfolio, so you’ll need to pick based on your preference and the current market situation.