Cosmos vs Ethereum 2.0: A Head-To-Head Comparison Of Two Solid Blockchains
Since the launch of the first blockchain in 2009, many computer programmers worldwide have set about developing their blockchains. Although similar in principle to the Bitcoin blockchain, all other blockchains created after the first blockchain vary in functionality and use case.Due to their uniqueness in functionality and use case, some blockchains are experiencing significant growth in adoption and new users. This article will consider the Cosmos Blockchain, one of the most exceptional blockchains presently available in the crypto space. The article will answer questions like What is Cosmos (Atom Crypto)?, What is Cosmos (Atom Use Case)? Is Cosmos Like Ethereum? to name a few.Additionally, we will discuss Atom, the native token on the Cosmos ecosystem. Finally, we will compare the functionality and use cases of the Cosmos blockchain and the proposed Ethereum 2.0 set to be launched by the Ethereum development team. You will better understand both the Cosmos and Atom Explained at the end of this article.
What is Cosmos Blockchain?
Founded by Ethan Buchman and Jae Kwon in 2014, Cosmos is a decentralized network that comprises many other independent and parallel blockchains. In practice, Cosmos provides its users with open source tools that can help to simplify and streamline crypto transitions between different networks. Additionally, the Cosmos blockchain serves as a network for other crypto networks on its platform.Due to the multifaceted nature of the Cosmos network, it is often referred to as the Internet of Blockchains. The Cosmos network has been used to create several top-rated crypto projects. The list of projects built on the Cosmos network includes Binance Smart Chain, Crypto.com, Terra (LUNA), The Secret Network, to name a few.To ensure the continued performance of the Cosmos blockchain, developers of the project built several Byzantine Fault Tolerance consensus algorithms. The Tendermint consensus is the most prominent BFT consensus deployed for maintaining the Cosmos blockchain functions properly. To better understand the operations of the Cosmos blockchain, let’s briefly highlight how the network operates.
The Cosmos Blockchain: How Does It Work?
Cosmos consists of three key layers, vital for maintaining its functionality. These layers include the Application layer, Networking layer, and Consensus layer.
- Application layer: This layer manages all transactions on the network. Additionally, this layer is responsible for updating all transactions in the network.
- Networking Layer: The Networking Layer ensures timely communication of transactions between blockchains.
- Consensus layer: Nodes on the cosmos network can always be informed about the system’s current state using this layer.
Cosmos utilises a set of open-source tools to link all the layers on the network together to function as intended. The open-source tools are also required to develop blockchain applications on the network.Recently, there was a significant upgrade on the Cosmos network. The upgrade came with the Inter-Blockchain Communication (IBC) protocol launch. The IBC protocol connects independent blockchains, ensuring that they exchange value and data seamlessly.
Tendermint Consensus Algorithm
The Tendermint Core consensus serves as the Proof of Stake mechanism on the network. The main function of the proof of Stake consensus is to ensure synchronization across all distributed networks on the Cosmos Hub. Additionally, new developers are looking to create blockchains on the network without writing lines of code from scratch, thanks to the consensus mechanism.
What is ATOM
As previously stated, the Atom token is the native token on the Cosmos network. In terms of the Cosmos ( Atom Use Case), this token is used as a means of completing transactions on the network. The token can be held and used as a currency for everyday transactions. Additionally, holders of this token have the option of staking their tokens for rewards.Atom’s total supply is capped at 280,941,722, while its circulating supply is currently capped at 223,157,118.97 tokens. ATOM token holders have the right to vote on network upgrades, but their vote is dependent on how many ATOMs tokens they stake in the network.
The value of Atom tokens is directly tied to the number of blockchains within the network. Therefore, the price of the Atom token will increase as more blockchains are added to the Cosmos network.Recently, the Cosmos network saw an exponential increase in the Cosmos (Atom Price) due to an increase in the number of new projects on the network. This growth resulted in the price of Atom hitting its previous all-time high of $44 on January 17, 2022.
Is Cosmos Like Ethereum? Cosmos Vs Ethereum- Comparison
There have been several comparisons between the Ethereum blockchain and the Cosmos blockchain. These comparisons have led several crypto enthusiasts to wonder Is Cosmos Like Ethereum?. The simple answer is No.The Cosmos blockchain is not a competitor or drop-in replacement for the Ethereum blockchain in terms of its functionality. Nevertheless, Cosmos provides complimentary blockchain development frameworks designed so developers on the network can launch their blockchains. Presently, the Ethereum blockchain does not offer this infrastructure to users of its platform.We must, however, state that some blockchains created on the Cosmos blockchain stand as competitors to the Ethereum blockchain. A prime example is the Binance Smart Chain which delivers faster transactions to users on their platform. Additionally, the fees attached to transactions on the Binance Smart Chain are cheaper when compared to transactions on the Ethereum network.Fully aware of the shortcomings on their network, developers on the Ethereum network are set to launch ETH 2.0 or Serenity to address issues on their network. When released, ETH 2.0 or Serenity will significantly increase the capacity of transactions on the blockchain.The upgrade will also mean a significant reduction in gas fees attached to transactions on the network. The will result in a much stable blockchain for Ethereum users. To achieve ETH 2.0, Ethereum will switch from its current proof-of-work (PoW) consensus to a proof-of-stake (PoS) governing mechanism.
Is Cosmos better than Polkadot?
The Cosmos blockchain shares several similarities to the Polkadot network in terms of functionality. These similarities have led several crypto enthusiasts to wonder: Is Cosmos better than Polkadot? Before addressing this question, let’s briefly explore some key similarities between these blockchains.The Cosmos and Polkadot blockchains were developed to resolve interoperability and scalability issues affecting blockchain development. Aside from that, both blockchains were designed to serve as a platform for connecting other blockchains. Thus, making cross-chain transactions easier. Despite these similarities, both blockchains vary in many ways. For example, Polkadot is more concerned with security, whereas Cosmos is more concerned with adoption. Additionally, blockchains make use of different consensus algorithms. Cosmos makes use of the Tendermint Consensus Algorithm, while Polkadot makes use of the GRANDPA Consensus Mechanism for controlling the Relay Chains on their network.In terms of functionality, the Cosmos blockchain currently outperforms the Polkadot. Using the Cosmos network, developers can create any type of blockchain-based project of their choosing.Many blockchain enthusiasts believe that Polkadot will become a better cross-chain platform once it becomes fully functional in the long run. This belief is based on the strong security features built into the Polkadot blockchain. Additionally, there is a strong expectation that Polkadot will provide a definite solution to the interoperability issues facing different blockchains today.
Conclusion
It is too early to compare the performance of ETH 2.0 to blockchains created using the Cosmos blockchain. However, we can expect to see more positive Cosmos (Atom News) due to the functionality and uniqueness of the project. We also expect to see positive price increases for ATOM the native token of the Cosmos Network. So for if you are ever wondering: Is Cosmos atom a good investment?. Our simple answer is Yes.
