You are probably familiar with the BNB Chain (formerly BSC), Binance’s blockchain. But do you know Cronos? Today, we are looking at one of the blockchains of another cryptocurrency exchange platform, namely Crypto.com.
What is the Cronos Blockchain?
It’s hard not to have heard of the centralized exchange Crypto.com, given the high-profile advertising campaigns the company has run. Did you know that Crypto.com has not one, but two blockchains? The first to emerge is Crypto.org Chain, while the second is Cronos, whose mainnet was launched on October 19, 2021. For the record, in Greek mythology, Cronos is a Titan famous for having overthrown his father, Ouranos… Before being himself trapped by Zeus, his own son!
If one wants to make a simple comparison between Crypto.com and Binance blockchains, the Crypto.org Channel could be similar to Binance Chainwhile Chronos gets closer to the BNB Channel (formerly BSC). In both cases, the two blockchains of each exchange operate in parallel to each other. Both BSC and Cronos offer the possibility of creating smart contracts, making them perfect playgrounds for DeFi and web3 as a whole.
What are the strengths of Crypto.com’s Cronos blockchain?
To better understand the attractions of Cronos, it must be approached from a technical point of view. To develop the Cronos blockchain, which is open source, the Crypto.com team used the Cosmos SDK. It was based on Ethermint as well as on the Tendermint protocol (note that Tendermint is now called Ignite). In doing so, the Cronos blockchain is thus compatible with the EVM (Ethereum virtual machine) and interoperable with blockchains which, like it, use the IBC (Inter Blockchain Communication) protocol. Thus, tokens and Dapps from EVM-compatible blockchains can be easily adapted on Cronos. Data and token transfers between Cronos and other IBC-compatible blockchains such as Cosmos, but also the Crypto.org Chain and Terra, are also made possible.
Cronos boasts of being the only blockchain EVM and ICB compatiblemaking it a connection hub between different ecosystems, such as Ethereum and Cosmos. Its advantages are its speed, its gas costs at a lower cost and its scalability. Crypto.com announces a cost of less than $1 per transaction, with a capacity of up to 50 million transactions per day. Developers are not out of place since they find the tools they are used to and can benefit from the Crypto.com ecosystem, which has more than 10 million users.
The Cronos ecosystem
Gaming, DeFi, NFT, Metaverse, launchpads… The projects that we count on Cronos are numerous and varied. According to Defi Llama, the 5 DeFi protocols with the strongest TVL (Total Value Locked) on Cronos are VVS Finance, MM Finance, Tectonic and DarkCrypto. Cronos’ TVL is currently estimated at $3.86 billion.
Cronos crypto: the CRO token
The cryptocurrency used on Cronos is the CROthe native token of the parallel blockchain to Cronos, the Crypto.org Chain, just like the BNB of the BNB Chain (BSC) is the native token of the Binance Chain. The standard for tokens on Cronos is CRC-20.
Cronos’ cryptocurrency, CRO, had an impressive surge from October 2020, rising from less than 20 cents to 0€89 in the space of a month, before falling back. The CRO is currently trading at around 0€37. The CRO crypto ranks 19th in the ranking of the most highly capitalized digital currencies.
What is the function of the Cronos CRO token?
Cronos has a type consensus mechanism Proof of authority (POA), which implies that validators do not stake tokens, but their reputation. the Proof of Stake (PoS) is on the other hand de rigueur within the Crypto.org Chain. The CRO token can be staked to generate passive income in cryptocurrency, but not only! Owning CRO crypto allows you to benefit from discounts on trading fees on Crypto.com, but also from cashbacks (refund of purchases) through the Visa Crypto.com card.
Where to buy Cronos CRO cryptocurrency?
Unexpectedly, the most used cryptocurrency exchange to buy CRO is Coinbasewhile Crypto.com only comes in at the 20th position by volume according to data from CoinMarketCap. The Crypto.com exchange offers the most trading pairs with CRO, but without fiat currency. If you want to buy CRO cryptocurrency directly with euros, you will need to go to Coinbase, Bittrex or even Bitvavo.
How to stake your CRO and use Cronos?
You can use the following wallets compatible with the Cronos blockchain:
Solution #1 — On the Crypto.com Marketplace
To do this, simply go to the computer version of the exchange and go to the “staking” on the left side menu, then deposit your $CRO, for an annual return of around 10%.
Solution #2 — Using the Crypto.com DeFi wallet
Technique a bit longer than the previous one. You will need Crypto.com’s DeFi Wallet (this is a second application to download). This wallet allows you to embed the Cronos Chain, as well as the Crypto.org Chain and to link it with its Crypto.com application. Once the wallet is configured (with the seed phraseis well saved)deposit your $CRO on your wallet then go to the “Earn” tab. Choose CRO then the validator you want to delegate your tokens to. Yield varies from validator to validator with yield somewhat higher at around 12.75%.
In summary :
- Cronos is an EVM and IBC compatible blockchain, which makes it an interoperable blockchain with many others, such as Ethereum and Cosmos.
- Centralized exchange Crypto.com is behind the project, which is open source.
- Cronos’ crypto is the CRO token, which comes in at 19th place in the Market Cap ranking.
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