Ethereum is currently one of the most popular blockchain projects in the world. After Bitcoin, it has had the largest impact on the crypto market through its smart contract and decentralised application functionality. However, the Ethereum blockchain also has its own set of problems, like high transaction fees and network congestion.
In such a landscape, many Ethereum competitors have presented their unique solutions to the problem. One such promising example is Cosmos. So what is Cosmos and how does it compare to Ethereum?
Cosmos is a crypto project that calls itself the “Internet of Blockchains”. It seeks to solve the many problems faced by older blockchains such as lack of interoperability, low scalability and prohibitive costs.
The platform uses an interconnected network of blockchains to speed up transactions and provide scalability. The network consists of the Cosmos hub – or the main blockchain – and several independent sidechains. These sidechains are easy to create and customise for developers, with modular features for security, governance and tokenomics.
The native token of the platform is ATOM. It has a market capitalization of $4,095,682,400 and is trading for $14.30 at the time of writing.
Read more: How Does Cosmos (ATOM) Work
Over the last few years, Ethereum has established itself as a dominant player in the crypto space, especially in decentralised finance and dApps. It is an open-source blockchain platform that innovated on first-generation blockchains like Bitcoin by adding smart contract functionality.
Smart contracts are blockchain programs that automatically execute when their underlying conditions are met. This can help automate several processes that may otherwise be highly time-consuming, like automatic transfers of assets and decentralised lending.
Ethereum has continued to make a name for itself through its wide reach and popularity among NFT users. The native token of the platform, ETH, has a market capitalization of $206,487,013,390 and is trading at $1,687 at the time of writing.
Read more: Ethereum Price Prediction
Ethereum VS Cosmos: Differences
Ethereum and Cosmos have designed their networks very differently. Ethereum uses a monolithic architecture, where all users and validators operate on the same network. Transactions conducted on any platform pass through the main Ethereum chain, which can make the network highly congested.
On the other hand, Cosmos has a modular architecture, with several sidechains connected to the main Cosmos Hub. This allows developers to run sovereign blockchains for their applications, while also spreading validation over several different blockchains. This provides greater flexibility and scalability.
All applications built on Cosmos are interoperable with each other. The network includes an Inter-Blockchain Communication (IBC) protocol, which allows it to share data and tokens across multiple blockchains.
Ethereum is not interoperable. ETH tokens cannot be sent from one blockchain to another like Bitcoin or Ripple. This reduces the scope and ease of use of the blockchain.
The blockchain trilemma states that blockchains must decide between decentralisation,
scalability and security. They can have at most two of the three characteristics, while the other one will lag behind.
Ethereum has long suffered because of this trilemma, choosing decentralization and security over scalability. However, Cosmos’ modular approach has ensured that it can resolve the trilemma and offer scalability alongside the other characteristics.
Read more: What Are Blockchain Layers
Cosmos VS Ethereum: Benefits
|Speed and Scalability
|Life time price rise
Fast and Scalable
Ethereum requires other solutions like sidechains and layer-2 scaling solutions to be able to match its demand. The base Cosmos network is scalable enough to handle all of its traffic and more. Thus, in terms of speed and scalability, Cosmos wins.
Solidity development has become the standard in crypto thanks to Ethereum’s dominance. But Cosmos has this covered, as it allows you to port over existing Ethereum applications and create more through an Ethereum Virtual Machine (EVM)-compatible software suite. It also allows developers the flexibility to run a sovereign blockchain with its own features and tokenomics.
Appeal and User Base
As seen above, there is a vast difference in the market capitalization of the two platforms. Ethereum is much more widely used and accepted than Cosmos. If you choose to use Cosmos, you will be among fewer users and in a comparatively untested platform. In terms of wider appeal and active users, Ethereum is far superior.
The battle between Cosmos and Ethereum is not an easy decision. Cosmos offers a modular network with fast and scalable sidechains for developers, but it will take a lot to unseat Ethereum from its position of market dominance. Additionally, the Ethereum network also has an active upgrade plan, with the first step of ETH 2.0 completed in September 2022.
If you wish for a stable platform used by millions of others, you can choose Ethereum. However, if you are interested in exploring new opportunities that offer better performance, Cosmos is the blockchain for you.
You can now buy both Ethereum and Cosmos on ZebPay Australia.
FAQs on Cosmos VS Ethereum
Is Cosmos Better Than Ethereum?
Currently, there are several characteristics in which Cosmos is better than Ethereum. It is a fast network that can be scaled by adding new blockchains, which also operate at a fraction of the cost. But there is much hope and excitement that Ethereum’s upgrades will resolve many of its issues with cost and scalability.