Could Cosmos Be The Ethereum Killer?

One of the cryptocurrencies touted as the “Ethereum killer” is Cosmos (ATOM), which was developed to solve the problems of slowness and environmentally harmful blockchains. COSMOS aims to make blockchain technology less complex and easy for developers. Therefore, it has a modular structure that exposes decentralized applications. Creating permissive proof-of-authority (PoA) blockchains as well as multi-asset public proof-of-stake (PoS) blockchains like Cosmos Hub is made possible with the Cosmos SDK, an open-source framework.

Of course, we cannot pass without mentioning one of the main pluses of Cosmos: its interoperability functionality. Cosmos is on the list of assets working on cross-blockchain to facilitate communication between networks of different cryptocurrencies such as Polkadot (DOT). Cosmos focuses on interoperability. Therefore, the altcoin is a direct competitor to Polkadot, a platform that also works at the intersection of networks of different cryptocurrencies. In Cosmos, it is possible to create various protocols in a customized way, just like in its competitor.

One of the differences between the two cryptocurrencies is that Cosmos aims to provide blockchain communication and adoption rather than security between blockchains, as with Polkadot. This means that projects created on Cosmos can communicate with each other. However, each project has its own layer of security. In the DOT network, private blockchains depend on Polkadot’s central security. Thus, it is possible to see that although both networks intend to allow interoperability between blockchains, they have different approaches. In Polkadot, the interaction between networks is carried out through parachains, while in Cosmos, the interaction is carried out with a hub approach.

Like Polkadot, Cosmos needs a stronger community, even if its network has an excellent value proposition. Another big issue is that the cryptocurrency has a staking process that punishes misbehaving validators by completely destroying them. While this is a mechanism that encourages good behavior on the network, it can be very detrimental to the investor who transfers their tokens; When another grantor misbehaves, the investor who had nothing to do with the misconduct is also penalized. Cosmos’ competition with other Ethereum competitors should not be overlooked. This could be an advantage for the altcoin in terms of market growth. However, becoming one of the most admired “Ethereum killers” has come long overdue for the cryptocurrency. ATOM has a market capitalization of $2.779 billion. This value puts ATOM in the 22nd place among the most valuable crypto assets.