HomeAltcoinsCosmos Vs Polkadot – Which is Best?

Cosmos Vs Polkadot – Which is Best?

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It is true that there is no project that is not bleeding at this moment because of the bear market, but like with everything in life, it will have its end. What will you do at that moment? 

Short-term investors will tell you not to look at any random project and just pick the popular projects, while fundamentalists will tell you to invest in projects for their technology/potential. And that is why in this video I am making a comparison between two very popular yet technologically super-strong projects. I have my scoreboard ready, do you have yours? Let’s discover the latest Cosmos Vs Polkadot comparison.

Introduction 

Cosmos and Polkadot are projects focused on breaking the silos between blockchains and making them interoperable. While the end goal is the same, there is a stark difference between the approach and that is what will determine which one of these two will be the King of blockchain interoperability.

1) Intro to Cosmos

Cosmos is an exceptionally ambitious project. It’s taking gigantic steps to become the blockchain that pulls all the other blockchains together in its blockchain interoperability platform.  It calls itself the most customizable, scalable, powerful, and interoperable ecosystem of connected blockchains, and we cannot deny it because over 20 blockchains, including Cosmos Hub, Osmosis, Crypto.Org, and Terra, are now connected in the Cosmos ecosystem by the Inter-Blockchain Communication (IBC) protocol that allows independent blockchains to talk to each other and transfer data and assets. 

At present, the ecosystem in Cosmos has more than 265 apps with more than $80 billion under management. Therefore, Cosmos has developed its “Cosmos Hub” which is an economic hub of Cosmos and provided services to the interchain, a project that wants to build a decentralized internet.

2) Intro to Polkadot

Polkadot is also a decentralized platform where anyone can connect public and private blockchains, and oracles, among other kinds of protocols. This is possible because Polkadot supports the creation of independent blockchains that can exchange data in a secure and easy way.   With the recent launch of Polkadot XMC, which enables direct messaging between parachains, Polkadot has really upped its game.

Features
1) Cosmo’s Features

Cosmos has developed a next-gen decentralized exchange where anyone can swap digital assets across the interchain. One of the most important features of Cosmos is its low fees and instant transactions.

Also, it’s important to mention that Cosmos can be used to secure many chains in exchange for additional staking rewards.

Moreover, one of the most significant features of Cosmos is its interoperability capacity to let it work with chains like Ethereum and Bitcoin. Yes, any kind of blockchain can be connected to Cosmos. 

On the other hand, Cosmos tries to fill the scalability gap, providing two kinds of scalability vertical and horizontal types. The first one helps PoW blockchains and the second one makes dApps can run in parallel PoS blockchains.

2) Polkadot’s Features

As we mentioned before, Polkadot is a sharded blockchain which means it is composed of multiple distinctive independent blockchains called shards that connect to a common relay chain. This means that polkadot- blockchains can:

  • Process transactions very fast, cheap and secure in parallel.
  • Exchange data.
  • Can be customized for a certain use case.

It’s good to know that in the future, Polkadot will launch its latest feature called “nested relay chains”. It will increase 

  • Forkless updates: Polkadot won’t need to fork the chain because their updates will be executed through Polkadot’s on-chain governance system.

Comparing the features of both blockchains we have now, we consider that Cosmos has the lead here, as it allows any blockchain, including PoW blockchains such as bitcoin and Ethereum, to join. This gives Cosmos a huge potential to develop. Currently, this feature is not implemented, but we are sure it will be in the future.

Consensus Mechanism
1) Cosmos Consensus Mechanism

Cosmos is considered one of the blockchain 3.0 which makes it easier for developers to build blockchains that can interact between them without sacrificing sovereignty, speed, and interoperability. 

Also, devs need networking, consensus, and application to build a blockchain, and Tendermint (2) packs networking and consensus that allows devs to put more focus on developing use cases rather than struggling with tech. Devs can save a lot of time in developing unnecessary code.  While building a dApp with this consensus mechanism is very difficult, the Cosmos SDK solves this major issue. 

2) Polkadot Consensus Mechanism

We know that the “consensus” term comes from establishing an agreement or consensus between the nodes from the network, and Polkadot is not the exception. 

Therefore, Polkadot has a NPoS (Nominated Proof-of-Stake) mechanism that created a parachain and relay chain. Parachain is primarily responsible for data calculation and transaction information processing which makes networks be together. On the other hand, relay chain is the feature that makes them secure in its intern network or by connecting them securely with bridges.

In short, this system tries to maximize the chain’s security by selecting who will be the validators with their DOT staking.  

Moreover, in the consensus part, the majority of people inside the ecosystem are always looking for a secure blockchain as a priority, and Polkadot is designed to provide it better than Cosmos. The reason is that Polkadot work like a whole network where many independent compatible blockchains work. However, in Cosmos, every blockchain is fully independent of each other, where each of them has its own consensus and own validators.  

Decentralization Level
1) Cosmo’s Decentralization Level

We all know that more validators mean more decentralization levels. In other words, this means that when blockchains have a high level of these features, the odds of breaking them are fewer.

In the case of Cosmos, it has 175 validators, which have minted more than 183.3 million tokens with a block time of 6.94 seconds. Moreover, to be a validator in Cosmos, any ATOM holder can ask to be a validator by:

  • Sending a transaction of 1 ATOM ($9.62)
  • Implementing monitoring, alerting, and management solutions.
2) Polkadot’s Decentralization Level

According to Polkastats, there are 297 accepted validators where there are more than 26,400 nominators that had staked more than 635,800 DOT tokens. 

In addition,  In Polkadot, you need a minimum number of staked DOT. Also, you need certain software requirements for CPU, storage, and memory. Moreover, after analyzing the validator requirements in both blockchains, we think that Cosmos will be more decentralized than Polkadot because it promotes crypto adoption.

Latest Developments
1) Cosmo’s Latest News
  1. Interchain security is coming to Cosmos.
  2. On May 16th and 17th, Cosmos is launching its Conference/Hackathon.
  3. Crescent Network launched its successful mainnet.
  4. Theta completed its upgrade.
2) Polkadot’s Latest News
  1. Polkadot has launched its latest upgrade.
  2. PolkaDEX, a Polkadot-decentralized exchange, won Polkadot’s 16th parachain auction. (6)
  3. DOT is now available in Moonbeam-DeFi protocols
  4. Polkadot is now applying its cross-chain interoperability milestone with XCM.

Only with these 4 news, we can see that both blockchains are having a great adoption with protocols and devs. Therefore is a tie in this factor.

Tokenomics
1) Cosmo’s Tokenomics

ATOM is the native token of Cosmos, which is currently trading at $11.12 which is down 0.3% in the last 24 hours. 

Nowadays, its marketcap is $3.24 billion, with a 24-hour trading volume of $217.8 million. 

Finally, the price of ATOM right now is 75% lower than its ATH on January 17th, 2022. Also, it’s 853% higher than its ATL level. Right now it’s in the 27th position.

2) Polkadot Tokenomics

On the other hand, DOT, the native token of Polkadot is currently trading at $10.10 and is up 3.7% in the last 24 hours.

Finally, the price of DOT right now is 81% lower than its ATH level and 273% higher than its ATL level.

In this factor, ATOM is a more dynamic token than DOT in terms of transactions. However, DOT is a much more recognized token that is in the 10th position of the entire industry. So DOT wins this factor

Ecosystem
1) Cosmo’s Ecosystem

Cosmos has very well-known projects in its network:

  • Cronos: Home of the 2nd largest centralized exchange in the world, crypto.com. The current marketcap of CRO, its native token, is $5.5 billion.
  • Anchor: The biggest DeFi protocol in Terra. Its current marketcap for ANC, its native token,  is $90.4 million.
  • THORChain: A very popular DeFi protocol with more than $558 million in TVL and $3.2 billion in native on-chain swaps. 
  • KAVA: A very fast layer 1 blockchain that combines Ethereum and Cosmos permissionless ecosystems. The current marketcap of its native token, KAVA, is $395.1 million.
  • Secret Network: This is the first blockchain-focused on closing the privacy gap in the industry. The current marketcap of its native token, SCRT, is at $370 million. 
2) Polkadot’s Ecosystem

Polkadot is one of the blockchain, projects with the highest potential. Here are the most important ones:

  • Kusama: A decentralized platform to launch early-aged Polkadot projects. The current marketcap of its native token, KSM, is now at $755.5 million   
  • Ankr: It’s an exciting decentralized platform that provides a multichain toolkit to access web3 infrastructure. The current marketcap of its native token, ANKR, is now at $305.4 million. 
  • Acala: Home of the first decentralized stablecoin in Polkadot, aUSD, integrated with Polkadot and Kusama. The current marketcap of its ACA, its native token, is now at $218.9 million.
  • PolkaDEX: A decentralized exchange with an innovative order book concept: The current marketcap of its native token, PDEX, is now at $18.5 million.
  • Polkastarter: The most popular decentralized launchpad in Polkadot, which also works with Ethereum, BNB Chain, Solana, Polygon, Avalanche, and Celo. The current marketcap of its current native token, POLS, is $68.1 million.
  • Moonriver: Is A complimentary company to Moonbeam where projects are tested in Moonriver first, so they can be deployed in Moonbeam then. The current marketcap of its native token, MOVR, is $98.1 million.

At this point, it is clear that Cosmos has blockchains that are much better known and consolidated in the sector than Polkadot. Projects like crypto.com, Secret Network, and Anchor are so big, that if you don’t do some research, you don’t realize that what they have in common is Cosmos.

Conclusion 

As you can see in the countdown, Cosmos wins the comparison mainly because it can make any kind of project development with its own rules and consensus mechanism. And the reality of each of them is proving it, even when DOT has a bigger marketcap than ATOM.

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The post Cosmos Vs Polkadot – Which is Best? appeared first on Altcoin Buzz.



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